NC H458

Authorizes the City of Henderson to levy a prepared food and beverages tax of up to 1% on retail sales of prepared food and alcoholic beverages within the city, subject to a public hearing and city council resolution.

Tax applies to food served for consumption on or off premises, including catering services, and is collected by retailers as an addition to state and local sales tax.

Exempts certain sales including boardinghouse meals, vending machine sales, grocery store items (excluding deli departments), employer-provided meals, and sales on federal military reservations.

Tax revenue (after deducting up to 3% for administration costs) must be used for travel and tourism promotion in Henderson, including advertising, marketing, market research, and tourism-related capital expenditures.

Tax becomes effective on the first day of a calendar month no earlier than four months after the city council adopts the resolution, and can only be repealed or reduced at the end of a fiscal year.