CHARLOTTE — Mecklenburg County residents have to make a taxing decision. On Tuesday, they will decide whether to raise the sales tax by 1% to fund new bus, rail and road projects.
The city of Charlotte projects the average household will spend an additional $240 each year if the tax passes. The city says approximately 30% of sales tax proceeds each year are paid by visitors.
Mecklenburg County’s sales tax rate is currently 7.25%. This is a combination of state, county and local taxes. If voters approve the measure, the new tax rate will be 8.25%, the highest in North Carolina.
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What will be taxed if it passes:
- Tangible personal property
- Certain digital property
- Lease or rental of tangible personal property
- Service contract or renewal of a service contract
- Prepaid meal plan
- Admission charges to an entertainment activity
- Rental of an accommodation
- Prepaid telephone calling service
- Satellite digital audio radio service
- Repair, maintenance, and installation services, including such services provided by a real property manager under a property management contract in certain circumstances
- Operation of laundries, dry cleaning plants, or similar businesses
- Alcoholic beverages, tobacco products, prepared food, candy, dietary supplements, soft drinks, and food sold through a vending machine.
What won’t be taxed:
- Prescription drugs
- Groceries
- Gas
Real World Examples:
McDonald’s Double Cheeseburger Extra Value Meal
- Current Price no tax: $6.89
- Current Price with tax: $7.46
- Future Price: $7.53
- Sales Tax Increase: $0.07
- This price includes 1% prepared food and beverage tax.
100 count Advil at CVS:
- Current Price no tax: $12.49
- Current Price with tax: $13.40
- Future Price: $13.52
- Sales Tax Increase: $0.12
Sweater at Walmart
- Current Price no tax: $24.00
- Current Price with tax: $25.74
- Future Price: $25.98
- Sales Tax Increase: $0.24
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