Bill Capping Sales Tax Rate Heads to NC Senate


by WCCB Charlotte

RALEIGH, NC -- A plan to cap North Carolina's sales tax rate at 2.5 percent is headed to the full Senate.  If it passes, it could impact raises for teachers in Charlotte-Mecklenburg.  The Senate Finance Committee passed House Bill 12-24 late Tuesday.  

The bill would block a referendum on the November ballot in Mecklenburg.  It asks voters to decide whether to raise the local sales tax to boost teacher salaries.  In the past, the sales tax was considered the state tax, while the property tax was the local tax.

"I'm the one who kind of broke that. But it was for a unique need, and that was transportation, which was unique for Charlotte and the other cities that had transportation needs," said Gov. Pat McCrory.

Governor McCrory says he will study what commitments were made when cities and counties were given flexibility to change local sales tax rates.

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