← Back to all bills

Repeal Two Percent Local Grocery Tax

IntroducedErin Pare (R)House2025–2026 Session
AI Generated

This bill removes groceries from North Carolina's local sales tax, reducing the local tax rate from 2% to 1% on food items. Currently, counties can levy up to a 2% local sales tax that includes groceries; this bill would exempt groceries from that tax while keeping the 1% tax on other items.

Arguments in Favor

Supporters argue this bill reduces the tax burden on groceries, making food more affordable for all North Carolinians, especially low-income families who spend a larger share of their income on food. They contend that exempting groceries is a fair tax policy that prioritizes basic necessities and helps struggling households stretch their budgets further.

Arguments Against

Opponents likely argue this bill reduces county revenue needed for schools, infrastructure, and public services that depend on local sales tax funding. They may be concerned that exempting groceries shifts the tax burden to other purchases and could limit counties' ability to fund essential services, particularly in rural areas with smaller tax bases.

AI-generated analysis based on bill text. Always verify with official sources at ncleg.gov. This is not legal or political advice.

Sponsors

Cosponsors (20)