H305 is a bill in the North Carolina Legislature (2025-2026 Session): Guilford County Sales Tax Distribution Mods.

What is the status of H305?

Signed into law as of July 31, 2025. Latest action: Ch. SL 2025-87 (July 31, 2025).

Blust, John M. (R, 62), with 1 co-sponsor.

Where is the official record for H305?

On the North Carolina Legislature website: https://www.ncleg.gov/BillLookUp/2025/H305

North Carolina legislation · 2025-2026 Session

North Carolina H305: Guilford County Sales Tax Distribution Mods.

Q: What does H305 do?

In its own words: An act applicable to guilford county only that (1) promotes fairness in sales tax distributions by allowing municipalities that do not levy ad valorem taxes to receive a percentage of local government sales and use tax distributions; (2) modifies the ballot question for a referendum regarding the levy of the article 46 quarter-cent sales and use tax; (3) specifies the uses of the article 46 tax proceeds; and (4) distributes a portion of the article 46 tax proceeds to certain municipalities in guilford county.

Status: Signed into law, July 31, 2025

What the bill says

An act applicable to guilford county only that (1) promotes fairness in sales tax distributions by allowing municipalities that do not levy ad valorem taxes to receive a percentage of local government sales and use tax distributions; (2) modifies the ballot question for a referendum regarding the levy of the article 46 quarter-cent sales and use tax; (3) specifies the uses of the article 46 tax proceeds; and (4) distributes a portion of the article 46 tax proceeds to certain municipalities in guilford county.

From the enrolled text:

AN ACT APPLICABLE TO GUILFORD COUNTY ONLY THAT (1) PROMOTES FAIRNESS IN SALES TAX DISTRIBUTIONS BY ALLOWING MUNICIPALITIES THAT DO NOT LEVY AD VALOREM TAXES TO RECEIVE A PERCENTAGE OF LOCAL GOVERNMENT SALES AND USE TAX DISTRIBUTIONS; (2) MODIFIES THE BALLOT QUESTION FOR A REFERENDUM REGARDING THE LEVY OF THE ARTICLE 46 QUARTER-CENT SALES AND USE TAX; (3) SPECIFIES THE USES OF THE ARTICLE 46 TAX PROCEEDS; AND (4) DISTRIBUTES A PORTION OF THE ARTICLE 46 TAX PROCEEDS TO CERTAIN MUNICIPALITIES IN GUILFORD COUNTY. The General Assembly of North Carolina enacts: SECTION 1.(a) Definitions. - The definitions in G.S. 105-472 apply to this section to the extent they are not inconsistent with the provisions of this section. In addition, the following definitions apply in this section: (1) Allocated share. - The product of a qualifying municipality's per capita distribution multiplied by twenty-five percent (25%). (2) Council. - Defined in G.S. 160A-1. (3) Per capita distribution. - The net proceeds of the tax collected under Articles 39, 40, and 42 of Chapter 105 of the General Statutes and distributable to a qualifying municipality as calculated using the per capita distribution method under G.S. 105-472(b)(1). (4) Qualifying municipality. - A municipality that meets all of the following requirements: a. Is in Guilford County. b. Does not levy ad valorem taxes. c. Does …

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North Carolina H305: Guilford County Sales Tax Distribution Mods.

What the bill says

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