Summary — HB 1005: Clarify Ballot Language for Article 46 Tax
Status and introduction
- Bill number: HB 1005
- Title: Clarify Ballot Language for Article 46 Tax
- Introduced: November 12, 2024
- Current status (per provided record): Passed first reading; referred to Elections (further actions recorded in the legislative history may follow)
Purpose and intent
- The bill clarifies the ballot language used in county referendums under Article 46 (the one‑quarter cent county sales and use tax) so voters see a concise description of the tax rate, a permissible use of revenues (increasing pay for teachers and education employees), and certain item exemptions. The stated intent is to make the ballot question clearer and to specify allowable uses of proceeds.
Key provisions / changes
- Amends G.S. 105‑537(c) (form of the ballot question for a special election on the Article 46 tax).
- Preserves the core rate language (a local sales and use tax at the rate of one‑quarter percent — 0.25%, described as “one penny for every four dollars ($4.00) spent”) and adds clarifying language appended to the ballot question:
- States that the tax “the proceeds of which can be used to increase pay for teachers and other education employees.”
- States that “This tax will not apply to gas, groceries, motor vehicles, or prescription drugs.”
- Effective date: the act is effective when it becomes law and applies to advisory referendums under Article 46 conducted on or after that date.
Who is affected
- Voters in counties considering a one‑quarter cent Article 46 sales tax (ballot wording used in their referendums).
- County governments and local election administrators (they must use the revised ballot language for affected referendums).
- K‑12 education employees (teachers and other education staff), since the ballot will explicitly allow proceeds to be used to increase their pay.
- Retailers and consumers of exempt items (gasoline, groceries, motor vehicles, prescription drugs) — the ballot explicitly states those categories are excluded from the tax, which may affect expected tax base and revenue estimates used in local planning.
Procedural / timeline notes
- The statute amended is G.S. 105‑537(c); the change takes effect upon enactment and applies to Article 46 advisory referendums held on or after that date.
- Because the change concerns ballot wording and stated allowable uses, it may influence how local jurisdictions draft revenue projections and how voters evaluate referendum questions.
Potential policy implications (non‑exhaustive)
- Clearer ballot language may increase voter understanding and could affect approval rates for county taxes framed with a specific use (teacher pay).
- Specifying exemptions in the ballot question could alter perceptions of who bears the tax and affect net revenues available to counties if those categories were previously included in local projections.
If you want, I can:
- Extract the exact pre- and post‑amendment ballot texts side‑by‑side; or
- Produce a short one‑page explainer for county election officials to post with the ballot question.