Sales Tax Info

BASIC SALES TAX INFO

What is the Article 46 One-Quarter Cent (¼ cent) County Sales and Use tax? Counties have the option to increase the sales tax by one-quarter of a penny, provided the public approves via a referendum.

How much additional sales tax will be generated?
The additional one-quarter cent sales and use tax will be one penny for every four-dollar purchase. Alamance County Government estimates, based on current sales tax figures, that this Article 46 Sales and Use Tax would generate approximately $4.8 million dollars annually. The additional quarter cent sales tax would go to the county (not state or cities) to be used for education and training, including debt service on facilities.

What is the current tax rate for Alamance County?
The current sales tax rate for Alamance County is 6.75% or six and three quarters of a cent for a $1.00 purchase. Sales Tax is collected by the vendor and remitted to the NC Department of Revenue who is responsible for distributing sales tax revenue to each county and municipality. Of the 6.75% sales tax, 4.75% is held by the State and 2.00% is distributed to the County and cities when applicable. If passed by voters, the new rate would be 7%.

Are there items exempt from the sales tax?
The new Article 46 one-quarter cent sales tax will apply to purchases on items such as clothing, household supplies, electronics as well as prepared food and drinks (restaurant or stores). Gas purchases and unprepared food (i.e. groceries) are exempt from the tax. For a full listing, see North Carolina General Statute 105-164.13.

How is sales tax different from property tax?
Property taxes are calculated based on the value of the property owned and are only paid by those who own property in Alamance County. Sales tax is calculated by the goods and services purchased and are paid by anyone buying in Alamance County including tourists and visitors.

Will the Article 46 Sales Tax be used to pay back bond debt?
While state law does not restrict how Article 46 sales tax is used, the County Commissioners approved a resolution on April 16, 2018 that directs the funds be used for education and training, including debt service on facilities.

If the sales tax passes, does this mean property taxes will not be increased?
Based on current estimates, a quarter cent sales tax could reduce a property tax increase by 3.62 cents.