NC H1186

Increases the state sales tax rate from 4.75% to 5.45% (a 0.7% increase) effective June 1, 2012, expiring July 1, 2015.

Allocates revenue from the temporary sales tax increase in priority order: restoring personnel positions and salaries in public schools ($95.8 million), community colleges ($19.7 million), and University of North Carolina ($182.8 million); reestablishing eliminated state employee positions ($24.1 million); restoring Medicaid ($454 million) and Health Choice ($6.6 million) programs; and funding Highway Patrol uniforms ($1.1 million).

Modifies tax distribution percentages for telecommunications and video programming services to cities, counties, and other entities to account for the sales tax increase.

Directs hiring entities to prioritize reemployment of workers previously laid off due to the 2011 budget reductions when filling restored positions.

Creates a Jobs, Health, and Education Restoration Fund in the Office of State Budget and Management to receive and disburse revenue from the temporary sales tax increase exclusively for the purposes outlined in the bill.