Bill > H630

This bill restores sales tax refund benefits for local school administrative units (LEAs) in North Carolina. Specifically, the bill reinstates two key provisions that were previously repealed in the state's sales tax law. It allows local school administrative units and joint agencies created by interlocal agreements to receive annual refunds for sales and use taxes paid on direct purchases of tangible personal property and services, with some exceptions such as electricity, telecommunications, and prepaid meal plans. The bill caps the aggregate annual local refund amount at $13.3 million and requires refund requests to be submitted within the same timeframe as state tax refunds. Effective July 1, 2025, the bill will repeal a specific tax-related statute (G.S. 105-164.44H) and will appropriate a recurring amount from the General Fund to the State Public School Fund to offset the financial impact of the restored refund. The bill aims to provide financial relief to local school administrative units by allowing them to recoup sales taxes paid on eligible purchases.

Government Affairs

https://www.ncleg.gov/BillLookUp/2025/H630