Mecklenburg’s 1% Transportation Sales Tax: Full Breakdown of Costs, Projects, and Control

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


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


How we got here: authorization and timing


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


Key numbers at a glance

ItemFigure
New tax rate ask1%
Household impactAbout $240 per year, average estimate
30-year revenueAbout $19.4B
Split40% roadway to municipalities, 60% transit to Authority
Food for home useExempt
Governance changeNew 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.

Explore our site without trackers and with actual context: start at The Charlotte Mercury, then roam our pillar sections: News, Business, Housing, and Politics. Our 2025 election coverage is live and only a little too honest: “Poll Dance 2025; Join the Dance” at Election 2025. Read The Fine Print if you like boundaries and candor: Privacy Policy, About Us, Terms of Service, Media, and Contact Us. You can always message us on X or Twitter or, as we call it, Twix at @queencityexp.


Creative Commons License

© 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)