NC S369

Increases North Carolina's general state sales tax rate from 4.75% to 5.75% effective January 1, 2016, with a 2% tax rate on food and subsequent increases to 6.25% on January 1, 2017, and 6.75% on January 1, 2018.

Repeals Articles 40 and 42 of Chapter 105 (local sales taxes) and phases out Article 39 local sales tax by reducing it from 1% to 0.5% on January 1, 2017, then fully repealing it on January 1, 2018.

Creates a new state distribution system allocating a portion of state sales tax revenue back to counties and cities on a per capita basis, with adjustment factors favoring certain counties and a requirement that 22.5% of county revenue be used for public school capital outlay.

Establishes a new one-quarter percent (0.25%) optional county sales and use tax in Article 46 that counties may levy by resolution or referendum, replacing the previous local tax structure.

Implements changes in phases: food tax rates effective January 1, 2016; local tax reductions effective January 1, 2017; and full repeal of Article 39 with comprehensive new system effective January 1, 2018.