
What is on the table
Mecklenburg County has placed a one percent transportation sales and use tax on the November 2025 ballot. The measure is authorized by state law and would be in addition to all current state and local sales taxes. The ballot question must read exactly: “One percent (1%) local sales and use taxes, in addition to the current local sales and use taxes, to be used only for roadway systems and public transportation systems.” See the bill text at Section 4.4(b) in House Bill 948 and the state’s Session Law framework that implements it.
Sources: House Bill 948, Ballot Question PDF, Session Law overview. North Carolina General AssemblyNorth Carolina General Assembly
- Who put it on the ballot: The Mecklenburg Board of County Commissioners voted 8–1 on Aug. 6, 2025 to place the referendum on the November ballot.
Source: WFAE report. WFAE - What it applies to: Most taxable purchases. Food for home consumption is exempt from this tax under Section 4.3.
Source: House Bill 948, Sec. 4.3 PDF. North Carolina General Assembly - If it passes: The county enacts the tax by resolution. The tax is then collected and distributed as specified below. The state law requires a new governance structure for transit and wind-down of the current structure.
Source: House Bill 948, Sec. 4.5 and Part VI PDF. North Carolina General Assembly
How much money and what it costs households
- Estimated sales tax rate change at the register: from 7.25% to 8.25% in Mecklenburg if voters approve.
- Estimated annual household impact: roughly $240 per year on average, according to local coverage.
- Thirty-year revenue estimate: about $19.4 billion, broadly consistent with the city’s Strategic Mobility framing that a one-cent tax would generate more than $19 billion and could leverage nearly $6 billion in outside funds.
Sources: WBTV explainer, City of Charlotte Strategic Mobility page. https://www.wbtv.comCity of Charlotte
Where the money goes
State law splits the new one-cent revenue in two large buckets and then sets formulas and conditions.
40% for roadway systems (distributed to municipalities)
- The County must distribute 40% of net proceeds to eligible municipalities in Mecklenburg: Charlotte, Cornelius, Davidson, Huntersville, Matthews, Mint Hill, Pineville.
- The law includes a formula and a baseline amount concept anchored to population figures and the Powell Bill street-miles reporting, to stabilize annual allocations and avoid big drops when population shares shift.
Source: House Bill 948, Section 4.8 PDF. North Carolina General Assembly
Roadway uses include: streets and highways, intersections, sidewalks, bike facilities, storm drainage, bridges, traffic control devices, certain fueling or charging infrastructure, and cybersecurity protections for roadway systems.
Source: House Bill 948, Section 4.2(4) PDF. North Carolina General Assembly
60% for public transportation systems (to a new Transit Authority)
- The County must distribute 60% of net proceeds to a new metropolitan public transportation authority created under Article 34, which will be responsible for transit financing, assets, and operations in place of the current interlocal framework.
- Funds may be used for financing, acquiring, constructing, operating, and maintaining public transportation, specifically including micro-transit. The law allows interlocal agreements between the Authority and a municipality for defined multi-year allocations or until a specified condition is met, such as retiring debt.
Source: House Bill 948, Section 4.9 PDF. North Carolina General Assembly
What happens to CATS and the MTC
- Today’s transit governance runs through the Metropolitan Transit Commission (MTC) under a 1999 interlocal agreement between Mecklenburg County, Charlotte, and the six towns.
Sources: CATS MTC page, 1999 interlocal agreement PDF. City of Charlotte+1 - If the tax is enacted, the statute requires Mecklenburg County to stand up a new metropolitan public transportation authority, transfer CATS assets and employees to that Authority, terminate the 1999 interlocal agreement, and dissolve the MTC as of the tax effective date. The law details transition steps, debt handling, and agreements with the City of Charlotte.
Sources: House Bill 948, Part VI and Sec. 6.6–6.8 PDF. North Carolina General Assembly
Red Line, Silver Line, and rail priorities under the law
- The Red Line commuter rail is defined in statute. The law requires the Authority to complete at least 50% of construction of the Red Line before the completion of any other rail project, with carve-outs for force majeure events. Planning and design for other rail can proceed so long as it does not delay the Red Line.
- The Authority must solicit input from Cornelius, Davidson, Huntersville on Red Line design and station locations, and also Mooresville if the line extends north.
Sources: House Bill 948, Section 4.10(2)-(3) PDF, Town of Davidson referendum FAQ. North Carolina General Assemblytownofdavidson.org - The new Authority must also reimburse the City of Charlotte for acquisition of Norfolk Southern’s O-Line and related property that underpins the Red Line corridor, not to exceed the City’s acquisition cost and associated debt.
Sources: House Bill 948, Section 4.9(4) and transition provisions, Axios on O-Line purchase. North Carolina General AssemblyAxios
How we got here: authorization and timing
- The PAVE Act package cleared the General Assembly and was signed by Gov. Josh Stein, providing the legal path to place a Mecklenburg transportation sales tax on the ballot.
Sources: WCNC explainer on PAVE signing, Axios legislative timeline, WUNC House passage, WUNC overview. WCNCAxiosWUNC+1 - The County Board’s Aug. 6 vote set the referendum for November 2025. State law requires a public hearing at least 30 days before the election on the question.
Sources: WFAE on the county vote, House Bill 948, Sec. 4.4(a). WFAENorth Carolina General Assembly
Spending rules and oversight highlights
- Supplement, not supplant: Transit revenues must supplement, not replace, existing funds for transit uses.
- Food exemption: Grocery food purchases remain exempt from the one-cent transportation tax.
- Monthly distributions: The state distributes proceeds monthly to the County, then the County distributes per the roadway and transit provisions.
- No state funding penalty: The law states intent not to reduce state transportation funding to Mecklenburg as a result of this tax.
Sources: House Bill 948, Sec. 2.3 and 4.3, 4.7, 8.3. North Carolina General Assembly
What it means for your commute and your street
- Roads, intersections, sidewalks, bike lanes, stormwater tied to roads: 40% share flows by formula to every Mecklenburg municipality for local project lists.
- Buses and rail: 60% share funds CATS-successor operations and capital, including bus service, micro-transit, rail expansion, and obligations like the O-Line reimbursement.
- Rail pacing: The Red Line must be at least 50% complete before any other rail opens, which places early emphasis on north corridor delivery.
Sources: House Bill 948, Sec. 4.8–4.10. North Carolina General Assembly
What supporters and skeptics are saying
- Proponents point to congestion growth, the ability to leverage federal money at scale, and a split that gives the towns a guaranteed roadway share while also building countywide transit links. They also note that the city estimates show significant outside matching and that a share of the sales tax is paid by visitors and commuters.
Source: City Strategic Mobility page. City of Charlotte - Skeptics focus on the total tax rate, household costs, past transit governance concerns, and the statute’s strong emphasis on Red Line completion before any other rail opens.
Sources: WBTV household impact, House Bill 948 rail priority. https://www.wbtv.comNorth Carolina General Assembly
Key numbers at a glance
Item | Figure |
---|---|
New tax rate ask | 1% |
Household impact | About $240 per year, average estimate |
30-year revenue | About $19.4B |
Split | 40% roadway to municipalities, 60% transit to Authority |
Food for home use | Exempt |
Governance change | New Authority replaces MTC upon enactment |
Short sources: WFAE county vote, HB 948 PDF, City Strategic Mobility, WBTV explainer. WFAENorth Carolina General AssemblyCity of Charlottehttps://www.wbtv.com
How to engage before the vote
- Watch for the required public hearing at least 30 days before the election.
- Read the legal text that will bind how funds are split and used.
- Track project lists from your town and the City of Charlotte.
- Check our “Poll Dance 2025; Join the Dance” guide for voter info and candidate positions as they publish.
Sources: HB 948 hearing rule, Election coverage hub. North Carolina General Assembly
The stakes
This referendum would be the largest local transportation funding package in North Carolina history by long-run dollars, with a statutory road-and-transit split, a front-loaded commitment to the Red Line, and a governance reset that retires the MTC in favor of a single county Authority. That is a big design choice. Voters will decide if the trade of a higher sales-tax rate for long-term capital and service funding is worth it.
About the Author
Jack Beckett drinks coffee like it is a public service and reads state-law PDFs so you do not have to. When the MTC dissolves, he promises not to cry into his mug. Probably.
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© 2025 The Charlotte Mercury / Strolling Ballantyne
This article, “Mecklenburg’s 1% Transportation Sales Tax: Full Breakdown of Costs, Projects, and Control,” by Jack Beckett is licensed under CC BY-ND 4.0.
“Mecklenburg’s 1% Transportation Sales Tax: Full Breakdown of Costs, Projects, and Control”
by Jack Beckett, The Charlotte Mercury (CC BY-ND 4.0)