NC S205

Authorizes the Town of Rutherfordton to levy a local one-quarter percent (1/4%) sales and use tax in addition to state and local sales taxes, subject to voter approval through referendum.

Requires the municipality's governing body to conduct an advisory referendum with a ballot question specifying the tax rate and its intended purposes: public safety, economic development, and public facilities.

The tax becomes effective only if a majority of referendum voters approve it, and the governing body must provide 10 days' public notice before levying the tax by resolution.

Tax administration follows existing state procedures under Article 39 of Chapter 105, with the Secretary of State collecting and distributing monthly tax proceeds to the municipality; exempts food items and certain bundled transactions from the tax.

Revenue from the tax may be used exclusively for public safety, economic development, and public facilities purposes.