GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 305
Short Title: Guilford County Sales Tax Distribution Mods. (Local)
Sponsors: Representative Blust.
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: State and Local Government, if favorable, Finance, if favorable, Rules, Calendar,
and Operations of the House
March 6, 2025
*H305 -v-1*
A BILL TO BE ENTITLED 1
AN ACT TO PROMOTE FA IRNESS IN SALES TAX DISTRIBUTIONS FOR 2
MUNICIPALITIES IN GUILFORD COUNTY BY ALL OWING MUNICIPALITIES 3
THAT DO NOT LEVY AD VALOREM TAXES TO REC EIVE A PERCENTAGE OF 4
LOCAL GOVERNMENT SAL ES AND USE TAX DISTRIBUTIONS. 5
The General Assembly of North Carolina enacts: 6
SECTION 1.(a) Definitions. – The definitions in G.S. 105-472 apply to this section 7
to the extent they are not inconsistent with the provisions of this section. In addition, the 8
following definitions apply in this act: 9
(1) Council. – Defined in G.S. 160A-1. 10
(2) Net proceeds. – The product of a qualifying municipality's per capita 11
distribution multiplied by twenty-five percent (25%). 12
(3) Per capita distribution. – The net proceeds of the tax collected under Article 13
39 of Chapter 105 of the General Statutes and distributable to a qualifying 14
municipality as calculated using the per capita distribution method under 15
G.S. 105-472(b)(1). 16
(4) Qualifying municipality. – A municipality that meets all of the following 17
requirements: 18
a. Is in Guilford County. 19
b. Does not levy ad valorem taxes. 20
c. Does not receive distributions under G.S. 105-472(b)(2). 21
SECTION 1.(b) Authorization. – Notwithstanding G.S. 105-472, a qualifying 22
municipality may receive distributions of net proceeds in accordance with this section during any 23
year in which the Guilford County Board of Commissioners chooses the ad valorem distribution 24
method under G.S. 105-472. 25
SECTION 1.(c) Resolution Required. – The council of a qualifying municipality 26
shall adopt a resolution indicating its intent to receive net proceeds in accordance with this 27
section. For a resolution under this subsection to be effective, a certified copy of it must be 28
delivered to the Secretary in Raleigh. If the council of a qualifying municipality fails to adopt a 29
resolution under this subsection, or if a certified copy of the resolution is not delivered to the 30
Secretary, that qualifying municipality is prohibited from receiving net proceeds. A resolution 31
under this subsection is effective until either (i) the municipality no longer meets the criteria of 32
a "qualifying municipality" or (ii) the Guilford County Board of Commissioners chooses the per 33 General Assembly Of North Carolina Session 2025
Page 2 House Bill 305-First Edition
capita distribution method under G.S. 105-472, after which time the municipality shall adopt and 1
submit a new resolution in accordance with this subsection. 2
SECTION 1.(d) Proportional Reduction. – The net proceeds of the taxes distributed 3
to Guilford County and to the municipalities in Guilford County under G.S. 105-472 shall be 4
proportionately reduced by the amount of net proceeds distributed to qualifying municipalities 5
under this section. 6
SECTION 1.(e) Service/Fire Districts Inapplicable. – Ad valorem taxes levied by 7
any service or fire district located in whole or in part within a qualifying municipality shall not 8
prohibit that municipality from receiving net proceeds under this section. 9
SECTION 2. This act is effective when it becomes law. 10