NC S650

Modifies North Carolina's local sales tax distribution system to gradually shift from point-of-collection basis to a 50-50 split between per capita and point-of-collection allocation by fiscal year 2023 and thereafter.

Simplifies the distribution of food sales taxes by directing them to be allocated in accordance with G.S. 105-472(a) rather than the previous complex per capita and proportional allocation methods.

Establishes a $5.2 million hold harmless distribution for fiscal year 2020-2021 to specified counties to offset changes in tax allocation, with amounts allocated to individual counties based on a percentage table.

Phases out the G.S. 105-524 adjustment over three years (60% for 2020-2021, 33.3% for 2021-2022, and 14.3% for 2022-2023) before full repeal in July 2023.

Becomes effective July 1, 2020, for sales tax revenues collected on or after that date and distributed to counties and cities on or after September 1, 2020.