North Carolina 2025-2026 Regular Session

North Carolina House Bill H948

Introduced
4/10/25  

Caption

The P.A.V.E. Act

Impact

If passed, the act will alter existing state laws regarding local taxation and transportation funding. It will establish a framework that permits the collection and allocation of revenues from a local sales tax designated explicitly for the construction, maintenance, and operation of public transportation systems. This change is intended to streamline funding for necessary infrastructure improvements without competing with existing revenue sources. It also underscores the importance of local control over fiscal policies that directly affect community development and mobility.

Summary

House Bill 948, also known as the Mecklenburg County Roadway Systems and Public Transportation Systems Sales Tax Act, aims to provide Mecklenburg County with legislative authority to levy local sales and use taxes to finance roadway and public transportation systems. The bill outlines mechanisms for revenue generation, which are designed to support various transportation projects and enhance the overall infrastructure within the county. By enabling the county to impose a sales tax effective only upon approval within a public referendum, the bill seeks to place power in the hands of the voters to determine additional funding for critical transportation needs in their communities.

Sentiment

Overall sentiment surrounding HB 948 is mixed. Supporters argue that it represents a critical step toward enhancing public transportation infrastructure and catering to the growing needs of Mecklenburg County's residents. Proponents highlight the potential for improved access to transportation services and economic growth. Conversely, opponents express concerns about the long-term fiscal implications of additional taxes, and how these would impact residents and businesses. The challenge lies in balancing adequate funding for infrastructure with the economic constraints many residents face.

Contention

Key points of contention include the provisions relating to the levy of the proposed local sales tax. Critics argue that while the bill would allow for necessary funding, it could also lead to increased financial burdens on residents. The requirement for a referendum ensures community input but raises questions regarding potential pushback from voters who may oppose any tax increases. Additionally, the process for revenue distribution and the establishment of a metropolitan transportation authority to oversee projects introduces concerns regarding accountability and the effective use of taxpayer funds.

Companion Bills

No companion bills found.

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