NC S696

Allows counties to levy local sales and use tax under Article 46 at flexible rates in one-quarter percent (1/4%) increments rather than a fixed 0.25% rate.

Establishes maximum total local sales and use tax rates of 2.5% for counties with Part 6 authorization and 2 3/4% for counties with Part 2, 4, or 5 authorization.

Requires any tax levy under this Article to be approved by referendum, with ballot questions specifying the applicable rate and the county purpose for which revenue will be used.

Tax proceeds must be allocated monthly by the Secretary and used only for purposes authorized under property tax law (G.S. 153A-149), as indicated on the ballot question.

Exempts the tax from applying to food exempt under G.S. 105-164.13B and bundled transactions taxable under G.S. 105-467(a)(5a).