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Charlotte Area News

Proposed Changes To Sales Tax Distribution Worries Municipalities League Director

John D. Simmons
Charlotte Observer

North Carolina legislative leaders are pushing for a significant change in how sales taxes are distributed.

Currently, 75 percent of all sales tax collections go to the county where the sales occurred. The rest is spread by population.

Senate Majority Leader Harry Brown of Onslow County wants to spread sales tax collections across the state by population.

“Large urban counties have had an unfair advantage for decades. This bill restructures the sales tax system so rural, poor counties can finally receive a fair shake,” he says.

Urban counties and cities such as Mecklenburg and Charlotte would take a big hit, while less populated counties likes Lincoln and Rowan would benefit.

Paul Meyer heads North Carolina’s League of Municipalities.  In this conversation, he tells WFAE's Mark Rumsey the legislation represents a "scary situation" for cities large and small.

"Cities are use to receiving sales taxes consistently - not waiting until August to find out what their share of their share of a state-controlled revenue would be."