NC Senate approves restrictions for Guilford sales tax referendum bill

The North Carolina Senate recently approved a new version of House Bill 305, which authorizes Guilford County to hold a voter referendum on a sales tax.

New language in the bill outlines what funds from a proposed quarter-cent sales tax would go toward. The money collected could only be used for classroom teacher salary supplements, fire protection equipment and services, and Guilford Technical Community College.

A small amount would also be available for municipalities. The Guilford County Board of Commissioners voted earlier this month to place the referendum on the November 2026 ballot.

Commission Chair Skip Alston said at that meeting that the measure was necessary to better support teachers.

"We have to have another alternative way of getting more funds to our schools, and this is what it's all about," Alston said.

If approved, the tax is estimated to generate $25 million in revenue. The bill now moves to the state House of Representatives for final approval.