NC S282

Cumberland County Board of Commissioners may levy a prepared food and beverage tax of up to 1% on retail sales, either by resolution (if no referendum defeating the tax was held within 5 years) or after voter approval in a referendum.

Tax applies to prepared food, beverages, and alcoholic beverages meeting prepared food conditions, with exemptions for boarding house meals, vending machines, grocery store sales (except delicatessen), and meals included with hotel room charges.

Net tax proceeds distributed to county and municipalities using a per capita method, with municipalities receiving 25% (2020-2022), 50% (2023-2024), and 100% (after 2024) of their per capita share.

County must transfer its share of proceeds to Cumberland County Civic Center Commission to finance arena construction or expansion and related facilities; municipalities must use their share for civic facility construction or expansion and event funding.

Tax becomes effective January 1, 2021, for sales made on or after that date, and may be repealed once arena facilities are constructed and related debt is paid.