Article 46 Referendum

What is it?

The one-quarter cent sales tax increases the tax rate from 6.75% to 7%.

What does this mean for me?

It means you will pay slightly more in tax when you purchase goods. For example, if you buy something for $10 at the store, you will pay 70 cents in tax instead of 67.5 cents.

What will the tax be applied to?

The tax will affect purchases at restaurants and stores. The tax will not impact sales of unprepared foods (grocery), gasoline, and prescription medications.

Why does the County want to raise the sales tax?

The County wants to raise the sales tax to add a new source of revenue for the County to help with countywide food insecurity initiatives.

What will the tax be used for?

The tax proceeds will be used to fund the School Nutrition Program, GEMS, Open Wide Outreach (Backpack Ministry) and community-led local food pantries.

What do I need to do?

Vote! You will be asked on the March ballot whether the County should levy the tax. If you approve, the County will be able to fund all areas to ensure Gates County Residents have food security.

Article 46 Tax is an optional sales tax that North Carolina General Statute 105 Article 46 gives county boards of commissioners the authority to levy, with voter approval. The tax will add an additional quarter-cent per dollar to every purchase. For example, for a $100 purchase, there will be twenty-five cents ($0.25) in additional tax. For $10, two and a half cents ($0.025). Purchases of unprepared foods (for example, groceries), gas, and prescription medications will be exempt. The complete list can be found in NC G.S. 105-164.13 and G.S. 105-164.13B. To date, 47 other counties have voted to levy Article 46 Tax.

The question as whether to levy the tax will be on a ballot and conducted by the Board of Elections. General Statute 105-537(c) mandates how the question will be posed: “[ ] FOR [ ] AGAINST Local sales and use tax at the rate of one-quarter percent (0.25%) in addition to all other State and local sales and use taxes.”

Property taxes are only paid by those who own property in the county, both individuals and businesses. This means that not all residents pay property taxes. However, Article 46 Tax is a tax that everyone (all residents, businesses, and tourists) would contribute to when they purchase goods in the county.