RALEIGH, N.C. — Most North Carolina counties that asked voters for a higher local sales tax this month came away empty-handed, with increases failing in nine of the 11 counties that put the question on the ballot.
The outcome fits a long trend. Roughly one in four local sales tax questions has won approval in North Carolina since 2007.
State law lets counties charge a combined 2% local sales tax on top of the statewide rate, which the Department of Revenue lists as a general 4.75% State Rate. Under Article 46, a county can add one more quarter-cent, but only if voters approve it first and commissioners then adopt it.
Guilford County was one of the two exceptions. After seven straight defeats, the quarter-cent increase finally passed on the eighth try, bringing the combined rate in the third most populous county to 7%. County commissioners have said 70% of the new money will go toward teacher salary supplements, with the remainder split among fire protection, Guilford Technical Community College and eligible town and city expenses.
Sampson County voters also said yes, backing a half-cent increase by an unofficial margin of 10,886 to 6,804. That move needed separate permission from the General Assembly and puts Sampson at 7.5%, matching Orange and Durham counties. Mecklenburg, at 8.25%, remains the highest in the state. County leaders expect about $4 million a year more for public schools, and they noted that groceries, gasoline and prescription drugs are exempt.
Retail groups warn that higher rates can push shoppers to buy big-ticket items elsewhere. The state retail merchants association says stores paid more than $283 million in 2024 in card swipe fees on the sales taxes they collect for the state and local governments.
More referendums may be coming. Voters statewide also approved an amendment capping how fast counties can raise property taxes, which could steer local governments toward sales taxes instead.
Section: More Raleigh NC politics news
Filed under: Raleigh NC Politics News
