HB 948, the Projects for Advancing Vehicle-Infrastructure Enhancements (PAVE) Act, is a Mecklenburg County transportation financing and governance bill. It authorizes a new county sales and use tax referendum and creates a framework for using those revenues for roadway systems and public transportation systems. The bill also revises existing Mecklenburg County transit-tax provisions, updates definitions of public transportation systems and transportation authorities, and adds a new metropolitan public transportation authority model for large, border-county jurisdictions with light rail service.
Under Part IV, Mecklenburg County may ask voters to approve a 1% local sales and use tax, with proceeds split 40% for roadway systems and 60% for public transportation. The roadway share is distributed among eligible municipalities using a formula based on street mileage and population, with maintenance-of-effort requirements to prevent local governments from replacing existing spending with new tax revenue. The transit share goes to a newly created metropolitan public transportation authority, which may use the funds for transit capital, operations, microtransit, and related projects, subject to limits on rail spending and requirements to advance the Red Line project and reimburse the City of Charlotte for the Norfolk Southern O-Line acquisition.
The bill also restructures Mecklenburg County transit governance by creating a metropolitan public transportation authority with broad powers to acquire property, issue bonds, enter contracts, exercise eminent domain, and operate transit services. If the county creates the authority and enacts the tax, the bill transfers control of Charlotte Area Transit System assets and operations to the authority, dissolves the existing Metropolitan Transit Commission, and terminates related interlocal agreements, while preserving obligations tied to outstanding debt and certain reimbursements. The bill further amends state law to recognize this new authority in bond, procurement, tax refund, reporting, and transportation funding statutes.
The general sentiment reflected by the bill’s structure is strongly pro-transit and pro-infrastructure, with an emphasis on long-term funding certainty, project delivery, and governance reform. Although no committee transcripts or recorded votes were provided, the enacted law suggests substantial legislative support for a major Mecklenburg County transit and roadway funding package. The bill’s detailed implementation requirements, debt protections, and reporting obligations indicate an effort to balance expansion of transit authority with fiscal oversight and accountability.
Notable points of contention likely center on the tax increase, the redistribution of control from the City of Charlotte to a new authority, and the mandated prioritization of specific projects such as the Red Line and Silver Line East. The bill also imposes spending caps on rail projects, requires reimbursement for the O-Line purchase, and conditions repeal of the tax on debt satisfaction and reimbursement obligations, all of which could be disputed by local governments, transit advocates, and taxpayers. The creation of a large, regionally appointed authority with eminent domain and bonding powers may also raise governance and accountability concerns.
HB 948 amends multiple chapters of North Carolina law, especially Chapter 105 on local sales taxes and Chapter 160A on public transportation authorities. It creates a new metropolitan public transportation authority category for qualifying large counties, authorizes Mecklenburg County to levy a new 1% sales tax by referendum, and changes how transit and roadway tax proceeds are distributed, used, and protected. The bill also makes conforming changes to eminent domain, procurement, refund, reporting, local tax confidentiality, and municipal finance statutes so that the new authority can receive revenues, issue debt, acquire assets, and operate transit systems under state law.
The bill appears to have been generally favorable in the legislative process, as reflected by its enactment into Session Law 2025-39 and gubernatorial approval. The text shows a strong policy consensus around expanding transportation funding and creating a new governance structure for Mecklenburg County transit, though no committee debate or vote record was provided. The overall tone of the legislation is affirmative and implementation-oriented, with extensive detail aimed at ensuring the tax, authority, and project delivery mechanisms can function together.
The most likely points of contention are the 1% sales tax, the shift of transit control from Charlotte and existing local bodies to a new metropolitan authority, and the bill’s project mandates and spending restrictions. Specific issues that may draw disagreement include the required focus on the Red Line, the reimbursement of the O-Line acquisition, the cap on rail spending, the maintenance-of-effort requirement for roadway funds, and the conditions attached to repeal of the tax. The bill also concentrates appointment power in the largest municipality and includes legislative and gubernatorial appointments, which could be controversial for local control and representation reasons.