Solutions

Possible Funding Options

Already more than 50 bills have been introduced in the North Carolina General Assembly seeking to address the critical funding issues facing our state. We cannot afford to throw out any proposal; all deserve serious consideration.  Below are a few of the options that are currently available to lawmakers.

Local Option Transfer Tax - Legislation will allow counties - upon approval by voters - to assess up to a 1% transfer tax, one time, on the sales price of land, new and existing houses and businesses. Six counties already have that authority.  They have used revenues from the transfer tax to avoid or even reduce property taxes while investing more in schools, roads, and water and sewer systems.

$2 billion State School Bonds - Legislation would authorize a statewide $2 billion school bond referendum. A variety of revenue sources are being considered to pay off those bonds. The funds would be used to support school construction in every county. The bonds would be issued only if the public voted in favor of the referendum.

$1 billion State Land and Water Conservation Bonds - Legislation would authorize a statewide $1 billion land and water conservation bond referendum.  A variety of revenue sources are being considered to pay off the bonds. Proceeds from the bonds would be used in communities and counties throughout the state. The bonds would only be issued if the public voted in favor of the referendum.

$250 million State Affordable Housing Bonds - Legislation would authorize a $250 million statewide bond referendum.  The funds would support an annual appropriation of $50 million per year for five years to help address critical housing needs by providing funds for the NC Housing Trust.

$1 billion State Clean Water Bonds - Legislation would authorize a statewide $1 billion clean water bond referendum.  A variety of revenue sources are being considered to pay off the bonds.  Proceeds from the bonds would be used in communities and counties throughout the state.  The bonds would only be issued if the public voted in favor of the referendum.

Highway Use Tax - Legislation would authorize a 2% increase in the current highway use tax.  Revenues generated from increased user fees would pay for a needed $1 billion transportation bond that would be dedicated to congestion relief and road improvements.  It would also provide gap funding for turnpike projects and increase funds available for local government use.

Other Options - Additional proposals for revenue sources include a variety of options, such as increasing the Deed Stamp Tax, sales tax and impact fees.