Quarter-cent transportation sales tax coming to North Carolina ballot in Fall

© Shutterstock

A decision Monday by the New Hanover County Board of Commissioners will put a transportation sales tax on the November ballot.

The commissioners approved a resolution to put a quarter-cent sales tax before voters. The board said that the tax would provide a dedicated source of revenue for public transportation enhancements and improvements over the next 10 years. Officials estimate the tax will generate $144 million from goods purchased in New Hanover County. However, the tax will exclude items like groceries, fuel, and prescriptions.

Part of the board’s motion agrees that, if passed, the county will work with the City of Wilmington, the towns of Carolina, Kure and Wrightsville beaches, Wave Transit, the Wilmington Urban Area Metropolitan Planning Organization )WMPO), and other community partners to develop an overall public transportation plan that prioritizes projects and ensure the tax proceeds will be used efficiently and effectively.

If approved in November, the tax would go back to the Board of Commissioners, who would need to vote to levy the tax to go into effect in 2023. The county’s overall sales tax would then go from 7 percent to 7.25 percent, the equivalent of 25 cents on every $100 of eligible goods.

Officials said the money from the tax increase would be split between public transportation (45 percent or $65 million), improvements to bicycle and pedestrian pathways (39 percent or $56 million), and rail realignment (16 percent of $23 million). Spending on public transportation would improve the efficiency, reliability, and usability of Wave Transit bus service and on-demand micro-transit service, while bike and pedestrian spending would focus on creating new bike lanes, trails, crosswalks, greenways, multi-use trails, and sidewalks.

The rail realignment spending would focus on the relocation of freight rail lines currently in densely populated areas of the county.