§ 105-487. Use of additional tax revenue by counties. - North Carolina Statutes

§ 105‑487.  Use ofadditional tax revenue by counties.

(a)        Except as providedin subsection (c), forty percent (40%) of the revenue received by a county fromadditional one‑half percent (1/2%) sales and use taxes levied under thisArticle during the first five fiscal years in which the additional taxes are ineffect in the county and thirty percent (30%) of the revenue received by acounty from these taxes  after the first five fiscal years in which the taxesare in effect in the county may be used by the county only for public schoolcapital outlay purposes as defined in G.S. 115C‑426(f) or to retire anyindebtedness incurred by the county for these purposes.

(b)        Repealed by SessionLaws 1998‑98, s. 31, effective August 14, 1998.

(c)        The LocalGovernment Commission may, upon petition by a county, authorize the county touse part or all its tax revenue, otherwise required by subsection (a) of thissection to be used for public school capital needs, for any lawful purpose. Thepetition shall be in the form of a resolution adopted by the Board of CountyCommissioners and transmitted to the Local Government Commission. The petitionshall demonstrate that the county can provide for its public school capitalneeds without restricting the use of part or all of the designated amount ofthe additional one‑half percent (½%) sales and use tax revenue for thatpurpose.

In making its decision, theLocal Government Commission shall consider information contained in thepetition concerning not only the public school capital needs, but also theother capital needs of the petitioning county. The Commission may also considerinformation from sources other than the petition. The Commission shall issue awritten decision on each petition stating the findings of the Commission concerningthe public school capital needs of the petitioning county and the percentage ofrevenue otherwise restricted by subsection (a) of this section that may be usedby the petitioning county for any lawful purpose.

Decisions of the Commissionallowing counties to use a percentage of their tax revenue that would otherwisebe restricted under subsection (a) of this section for any lawful purpose arefinal and shall continue in effect until the restrictions imposed by thatsubsection expire. A county whose petition is denied, in whole or in part, bythe Commission may subsequently submit a new petition to the Commission.

(d)        For purposes ofdetermining the number of fiscal years in which one‑half percent (½%)sales and use taxes levied under this Article have been in effect in a county,these taxes are considered to be in effect only from the effective date of thelevy of these taxes and are considered to be in effect for a full fiscal yearduring the first year in which these taxes were in effect, regardless of thenumber of months in that year in which the taxes were actually in effect.

(e)        A county may expendpart or all of the revenue restricted for public school capital needs pursuantto subsection (a) of this section in the fiscal year in which the revenue isreceived, or the county may place part or all of this revenue in a capitalreserve fund and shall specifically identify this revenue in accordance withChapter 159 of the General Statutes.  (1983, c. 908, s. 1; 1993, c. 255, ss. 1, 3; 1998‑98,s. 31; 1998‑186, s. 1; 2009‑395, s. 1.)