Budget & Taxes

HB 948, the P.A.V.E. Act, amends North Carolina law to allow Mecklenburg County to levy an additional 0.5% local sales tax specifically for public transportation systems. The bill defines "public transportation system" broadly to include buses, transit facilities, bike/pedestrian infrastructure, and automated transport tunnels, while excluding general roads. Funds collected must supplement, not replace, existing public transit funding and can only be used for financing, building, operating, or maintaining these systems. The tax proceeds would be distributed monthly to Mecklenburg County and its public transportation authorities per a financial plan, with the bill taking effect only if Mecklenburg levies this tax.

HB 143 authorizes the Town of Maysville to impose a 6% occupancy tax on rental income from hotels, motels, and similar accommodations already subject to North Carolina's sales tax. This tax applies to all qualifying accommodations within Maysville and is collected separately from state and local sales taxes. Revenue from the tax must be sent quarterly to the Maysville Tourism Development Authority, which is required to use at least two-thirds of the funds for tourism promotion (like advertising and marketing) and the remainder for tourism-related expenses such as facility improvements. The bill also creates the Tourism Development Authority, requiring at least one-third of its members to represent tax-collecting businesses and half to be active in tourism promotion.

HB 58 modifies local election rules across North Carolina. It extends Kittrell's mayor and commissioners' terms from two to four years, changes Asheboro's school board to seven partisan-elected members (down from 11) with four-year staggered terms, and eliminates a mandatory school funding floor for Scotland County. The bill also establishes residency districts for Anson County commissioners, clarifies vacancy procedures for Caswell County, and allows Scotland County to set school budgets without state-mandated funding minimums. These changes directly affect local governments and school boards in multiple counties, altering election structures and budget authority.