NC S166

Creates a new local option sales and use tax for public education (Article 43A) that allows counties to levy a tax at 1/4% or 1/2% rate after approval in a referendum.

Restricts the new education sales tax so it cannot be in effect simultaneously with the existing local sales tax under Article 43 in the same county.

Requires all revenue from the education sales tax to be used only for public school capital outlay purposes or to retire indebtedness incurred for those purposes.

Exempts food products and bundled transactions from the new tax and specifies that revenue allocated to counties is not divided between counties and municipalities.

Establishes administration of the new tax under Article 39 procedures with provisions ensuring the combined state and local tax rates do not exceed certain thresholds.