House Bill 1005 would change the ballot language used for local referendums authorizing the one-quarter cent county sales and use tax under Article 46 of Chapter 105 of the North Carolina General Statutes. The bill replaces the current ballot question with language that more explicitly describes the tax as a 0.25% local sales and use tax, explains that it is one penny for every four dollars spent, and states that the tax is in addition to existing state and local sales taxes.
The bill also adds a policy statement to the ballot language indicating that the proceeds may be used to increase pay for teachers and other education employees. It further specifies that the tax would not apply to gas, groceries, motor vehicles, or prescription drugs. The act would take effect when it becomes law and would apply to advisory referendums held on or after that date.
HB1005 would amend G.S. 105-537(c), which governs the ballot question for county referendums on the Article 46 local sales and use tax. Its practical effect is to require a more detailed and specific ballot description for future referendums, and to broaden the stated allowable uses of the tax proceeds by expressly referencing teacher and education employee pay. Counties considering this tax would need to use the revised ballot wording for elections conducted on or after the effective date.
There is little recorded committee or floor discussion in the available materials, and no votes are listed, so the bill’s sentiment must be inferred from its text. The measure appears to be framed as a clarification and voter-information bill, suggesting a generally administrative or supportive intent rather than a controversial structural tax change. The inclusion of education-related spending language may indicate an effort to make the tax more politically acceptable by tying it to teacher compensation.
The main point of potential contention is the expanded ballot language itself, especially the reference to using tax proceeds to increase pay for teachers and other education employees. Supporters may view that as helpful disclosure and a positive use of local tax revenue, while opponents could see it as promotional language that could influence voters or as an expansion of the tax’s perceived purpose. Another possible issue is the tax’s continued addition to existing sales taxes, though the bill does not change the tax rate or authorize a new tax category.