Restore LEA Sales Tax Benefit.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 630

Short Title: Restore LEA Sales Tax Benefit. (Public)
Sponsors: Representatives Lofton and Longest (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
April 2, 2025
*H630-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO RESTORE THE SALES TAX REFUND AUTHORIZED FOR LOCAL SCHOOL 2
ADMINISTRATIVE UNITS. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. Subdivision (2b) of subsection (c) of G.S. 105-164.14 is reenacted as 5
it existed immediately before its repeal. 6
SECTION 2. Subdivision (2c) of subsection (c) of G.S. 105-164.14 is reenacted as 7
it existed immediately before its repeal. 8
SECTION 3. G.S. 105-467(b) reads as rewritten: 9
"(b) Exemptions and Refunds. – The State exemptions and exclusions contained in Article 10
5 of Subchapter I of this Chapter, except for the exemption for food in G.S. 105-164.13B, apply 11
to the local sales and use tax authorized to be levied and imposed under this Article. The State 12
refund provisions contained in G.S. 105-164.14 and G.S. 105-164.14A apply to the local sales 13
and use tax authorized to be levied and imposed under this Article. A refund of an excessive or 14
erroneous State sales tax collection allowed under G.S. 105-164.11 and a refund of State sales 15
tax paid on a rescinded sale or cancelled service contract under G.S. 105-164.11A apply to the 16
local sales and use tax authorized to be levied and imposed under this Article. The aggregate 17
annual local refund amount allowed an entity under G.S. 105-164.14(b) for the State's fiscal year 18
may not exceed thirteen million three hundred thousand dollars ($13,300,000). A 19
Except as provided in this subsection, a taxing county may not allow an exemption, exclusion, 20
or refund that is not allowed under the State sales and use tax. A local school administrative unit 21
and a joint agency created by interlocal agreement among local school administrative units 22
pursuant to G.S. 160A-462 to jointly purchase food service -related materials, supplies, and 23
equipment on their behalf is allowed an annual refund of sales and use taxes paid by it under this 24
Article on direct purchases of tangible personal property and services. Sales and use tax liability 25
indirectly incurred by the entity as part of a real property contract for real property that is owned 26
or leased by the entity and is a capital improvement for use by the entity is considered a sales or 27
use tax liability incurred on direct purchases by the entity for the purpose of this subsection. The 28
refund allowed under this subsect ion does not apply to purchases of electricity, 29
telecommunications service, ancillary service, piped natural gas, video programming, or a 30
prepaid meal plan. A request for a refund is due in the same time and manner as provided in 31
G.S. 105-164.14(c). Refunds applied for more than three years after the due date are barred." 32
SECTION 4. Effective July 1, 2025, G.S. 105-164.44H is repealed, and the Director 33
of the Budget shall adjust the budget of the State Public School Fund accordingly. 34
General Assembly Of North Carolina Session 2025
Page 2 House Bill 630-First Edition
SECTION 5. There is appropriated from the General Fund to the State Public School 1
Fund a recurring amount equal to the amount of the adjustment in Section 4 of this act. 2
SECTION 6. Except as otherwise provided, this act becomes effective July 1, 2025, 3
and applies to sales made on or after that date. 4