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NC Senate delays local sales tax bill

By Associated Press
Published On: Jul 17 2014 05:40:49 PM CDT
RALEIGH, WAKE COUNTY -

A proposal to streamline sales taxes in North Carolina while preventing counties from collecting extra revenues simultaneously for education and public transportation has been put off in the Senate until at least next week.

Senate Republicans prepared for a floor vote Thursday but delayed debate until Monday after emerging from a GOP caucus meeting.

The bill that surfaced at the legislature on Wednesday would cap local sales and use taxes a county can collect at 2.5 percent - meaning the combined state and local tax would be limited to 7.25 percent, with a narrow exception. The combined tax in most counties is currently 6.75 percent.  

Critics say provisions in the bill could prevent Mecklenburg County and discourage Wake County from holding November referenda asking voters to raise the sales tax.