North Carolina SB 145: Mecklenburg Transportation Referendum.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 145

Short Title: Mecklenburg Transportation Referendum. (Local)
Sponsors: Senators Rabon, Craven, and Sawyer (Primary Sponsors).
Referred to: Rules and Operations of the Senate
February 25, 2025
*S145-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO AUTHORIZE SUPPLEMENTAL SOURCES OF REVENUE FOR 2
MECKLENBURG COUNTY FOR LOCAL GOVERNMENT TRANSPORTATION 3
SYSTEM FINANCING. 4
The General Assembly of North Carolina enacts: 5
6
PART I. LEGISLATIVE FINDINGS 7
SECTION 1.1. The General Assembly makes the following findings: 8
(1) Transportation plays a vital role in the State's economy; it makes economic 9
activity possible (e.g., connecting producers to raw materials, workers, and 10
customers) and is a major economic activity in its own right. 11
(2) Multiple research studies show a link between access to transportation and 12
economic mobility. 13
(3) Sound transportation investments lower the costs of moving people and goods, 14
thereby increasing economic productivity and improving standards of living. 15
(4) Some studies have suggested that traffic congestion costs the United States 16
economy over one hundred twenty billion dollars ($120,000,000,000) 17
annually. 18
(5) Potential costs of congestion include those related to increased travel time, 19
added fuel costs, increased unreliability, emissions and environmental 20
damage, excess vehicle operating costs, loss of productivity, increased 21
inventory costs, and higher frequency of cargo delays. 22
(6) Research studies have linked traffic congestion to higher rates of depression 23
and anxiety, lower job and overall satisfaction, and even increased rates of 24
domestic violence. 25
(7) Traffic congestion is typically a bigger problem in more urbanized and rapidly 26
growing areas. 27
(8) North Carolina is home to urbanized and rapidly growing areas that are 28
experiencing the negative effects of traffic congestion. 29
(9) Congestion begins slowing the employment growth rate in a region at 30
approximately 37 annual hours of commuter delay and halts growth altogether 31
at 180 annual hours of commuter delay. 32
(10) According to the Texas A&M Transportation Institute, the 33
Charlotte-Concord-Gastonia MSA reached 38 annual hours of commuter 34
delay in 2000 and climbed to 53 hours in 2019. 35

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 145-First Edition
(11) In 20 years, the Charlotte region's population will grow by fifty percent (50%) 1
from 2,600,000 today to 4,100,000 in 2045. 2
(12) As congestion continues to increase, it is estimated that up to 126,100 jobs 3
and three billion dollars ($3,000,000,000) in tax receipts could go unrealized 4
by the end of 2050 in the Charlotte-Concord-Gastonia MSA. 5
(13) Additional sources of transportation funding are needed to help these areas 6
address congestion so as not to impede future economic growth. 7
8
PART II. REVISIONS TO CURRENT MECKLENBURG COUNTY SALES TAX FOR 9
PUBLIC TRANSPORTATION 10
SECTION 2.1. Reserved. 11
SECTION 2.2. G.S. 105-507.2 reads as rewritten: 12
"§ 105-507.2. Levy and collection Levy, collection, and repeal of sales and use tax. 13
(a) If the majority of those voting in a referendum held pursuant to G.S. 105-507.1 vote 14
for the levy of the tax, the board of commissioners of the county may, by resolution, levy one-half 15
percent (½%) local sales and use taxes in addition to any other State and local sales and use taxes 16
levied pursuant to law. Except as provided in this Part, the adoption, levy, collection, 17
administration, and repeal of these additional taxes shall be in accordance with Article 39 of this 18
Chapter. In applying the provisions of Article 39 of this Chapter to this Part, references to 'this 19
Article' mean 'Part 1 of Article 43 of Chapter 105 of the General Statutes'. 20
(b) No action by a county to repeal a tax levied under this Part may become effective 21
while previously issued or, as provided in this subsection, refinanced, bonds, notes, or other 22
financing secured or payable by receipts derived from the tax allocated to a municipality or a 23
transportation authority by the county remain outstanding. Nothing in this Part obligates a county 24
to exercise any power of taxation or restricts the ability of the county to repeal the tax previously 25
levied. If a county repeals a tax levied under this Part, a municipality or transportation authority 26
may refinance previously issued bonds, notes, or other financing that are secured or payable by 27
receipts for the tax revenue under this Part to reduce debt service as allowed under the law so 28
long as the refinancing does not extend the date of maturity for the previously issued bonds, 29
notes, or other financing." 30
SECTION 2.3. Reserved. 31
SECTION 2.4. G.S. 105-507.3 reads as rewritten: 32
"§ 105-507.3. Distribution and use of taxes. 33
(a) Distribution. – The Secretary shall, on a monthly basis, allocate to each taxing coun