North Carolina SB 131: Temp. Local Sales Tax Changes/Buncombe Co.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 3
SENATE BILL 131
Finance Committee Substitute Adopted 4/9/25
Third Edition Engrossed 4/15/25

Short Title: Temp. Local Sales Tax Changes/Buncombe Co. (Local)
Sponsors:
Referred to:
February 24, 2025
*S131-v-3*
A BILL TO BE ENTITLED 1
AN ACT TO TEMPORARILY MODIFY BUNCOMBE COUNTY'S USE OF ONE-HALF OF 2
ARTICLE 39 LOCAL SALES AND USE TAX PROCEEDS TO INCLUDE BOTH 3
SCHOOL CAPITAL OUTLAY AND SCHOOL OPERATING EXPENSES AND TO 4
MAKE TECHNICAL CHANGES TO THE BUNCOMBE SCHOOL CAPITAL FUND 5
COMMISSION. 6
The General Assembly of North Carolina enacts: 7
8
TEMPORARILY MODIFY DISTRIBUTION AND USE OF ONE-HALF OF THE NET 9
PROCEEDS FROM THE FIRST ONE CENT OF LOCAL SALES AND USE TAX 10
ALLOCATED TO BUNCOMBE COUNTY 11
SECTION 1.(a) Notwithstanding Section 6 of Chapter 134 of the 1983 Session 12
Laws, as amended by Chapter 534 of the 1983 Session Laws and S.L. 2016-19, directing that 13
one-half of the local government sales and use tax revenue be distributed to the School Capital 14
Fund Commission for Buncombe County (Commission), the Secretary of Revenue shall 15
distribute one hundred percent (100%) of the net proceeds of the local government sales and use 16
tax revenue collected by Buncombe County under Article 39 of Chapter 105 of the General 17
Statutes in accordance with G.S. 105-472 using the ad valorem method of distribution. 18
Notwithstanding the provision in G.S. 105-472 allowing counties to change the method of 19
distribution, Buncombe County is not permitted to change the method of distribution for any year 20
for which the distribution and use provisions of this act apply. 21
SECTION 1.(b) Notwithstanding the use provisions in Sections 9 through 12 of 22
Chapter 134 of the 1983 Session Laws, as amended by Chapter 534 of the 1983 Session Laws 23
and S.L. 2016-19, and applicable to the funds distributed to the Commission, Buncombe County 24
shall use the net proceeds of the local government sales and use tax revenue collected under 25
Article 39 of Chapter 105 of the General Statutes and allocated to Buncombe County under 26
subsection (a) of this section as follows: 27
(1) Fifty percent (50%) for school capital outlay purposes, as defined in 28
G.S. 115C-426(f), or to retire any indebtedness incurred by the County for 29
these purposes, and for school operating expenses. The Commission shall 30
serve in an advisory capacity to the Buncombe County Board of County 31
Commissioners with respect to the use of funds under this subdivision for 32
school capital outlay purposes by considering the capital needs of both the 33
Buncombe County School System and the Asheville City School System, 34
prioritizing those needs, and recommending projects to be funded. However, 35

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 131-Third Edition
the use of funds under this subdivision shall not be under the control of the 1
Commission and shall be determined by the board of commissioners. 2
(2) Fifty percent (50%) for any public purpose. 3
SECTION 1.(c) This section applies only to Buncombe County. 4
SECTION 1.(d) This section is effective when it becomes law and applies to net 5
proceeds distributed to Buncombe County by the Secretary of Revenue under Article 39 of 6
Chapter 105 of the General Statutes on or after July 1, 2025, and expires on June 30, 2027. 7
8
MAKE TECHNICAL CHANGES TO BUNCOMBE SCHOOL CAPITAL FUND 9
COMMISSION 10
SECTION 2.(a) Chapter 134 of the 1983 Session Laws, as amended by Chapter 534 11
of the 1983 Session Laws and S.L. 2016-19, is rewritten and recodified as subsections (b) through 12
(m) of this section. 13
SECTION 2.(b) There is hereby created a Commission to be known as the School 14
Capital Fund Commission for Buncombe County, which Commission shall have and possess all 15
the powers conferred by this act and such other powers as may be useful or necessary to permit 16
it fully to carry out the purposes of this act. The Commission is hereby declared to be a 17
corporation with perpetual succession, the right to adopt and use a corporate seal, to sue and to 18
be sued, and to hold, manage and control the moneys and properties received by it under the 19
provisions of this act. It shall have the right to make reasonable rules and regulations for the 20
conduct of its business. 21
SECTION 2.(c) The Commission shall consist of five members. Members of the 22
Commission shall serve two-year terms and shall be appointed as follows: one appointed by the 23
Asheville City Board of Education, one appointed by the Buncombe County Board of Education, 24
two appointed by the Buncombe County Board of Commissioners, and one appointed by the 25
other four appointees. A member appointed by a local governing board or a school board shall 26
serve at the pleasure of that board. The member appointed by the other appointees shall serve at 27
the pleasure of the majority of the other appointees. Any vacancy shall be filled by the appointing 28
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