Frequently Asked Questions - Additional 1% Sales and Use Tax for Mecklenburg County

The tax is a new 1% local sales and use tax for Mecklenburg County. The tax is in addition to the existing sales and use tax rates.

The tax was approved by the North Carolina General Assembly, Mecklenburg County voters, and the Mecklenburg County Commission.

On June 30th, 2025, the North Carolina General Assembly passed Session Law 2025-39, also known as the P.A.V.E Act. On November 4th, 2025, Mecklenburg County voters approved the one-percent local sales and use tax referendum. Finally, on December 2, 2025, the Mecklenburg County Commission approved the additional levy effective July 1, 2026.

Mecklenburg County must distribute forty percent (40%) of the net proceeds to eligible municipalities which include the City of Charlotte and the Towns of Cornelius, Davidson, Huntersville, Matthews, Mint Hill, and Pineville.

Mecklenburg County must distribute sixty percent (60%) of the net proceeds of the tax to the Metropolitan Public Transportation Authority.

The tax distributed to municipalities will be used for roadway systems.

The tax distributed to the Metropolitan Public Transportation Authority will be used for a public transportation system.

No. The 1% Additional County Rate is in addition to the .50% transit tax. Refer to the sales and use tax rate webpage for the effective rates of tax for Mecklenburg County.

Retailers must collect the 1% Additional County Rate for retail sales and leases sourced to Mecklenburg County. This includes retailers located both in Mecklenburg County and outside of Mecklenburg County.

The 1% Additional County Rate applies to all taxable items except those listed below. Purchasers are liable for the new rate of use tax if the retailer does not collect the tax at the time of sale.

The 1% Additional County Rate does not apply to the following items subject to a specific rate of tax:

• Qualifying food items (2%)
• Aircraft (4.75%)
• Electricity (7%)
• Boats (3%)
• Qualified jet engines (4.75%)
• Piped natural gas (7%)
• Manufactured homes (4.75%)
• Aviation gasoline & jet fuel (7%)
• Video programming (7%)
• Modular homes (4.75%)
• Telecommunications service & ancillary service (7%)
• Antique spirituous liquor & spirituous liquor other than mixed beverages (7%)

The 1% Additional County Rate of tax is effective July 1, 2026.

Yes. Retailers must collect the 1% Additional County Rate for retail sales and leases sourced to Mecklenburg County.

Yes. The 1% Additional County Rate will apply to leases billed on or after July 1, 2026. The gross receipts derived from a taxable lease or rental agreement of tangible personal property are subject to the applicable rates of sales and use tax in effect on the day of the billing no matter when the lease or rental agreement was entered into.

Yes. The 1% Additional County Rate of tax applies to the gross receipts derived from taxable admission charges sold on or after July 1, 2026.

Note: The date of an event and the date tickets went on sale for an event do not impact the tax rate that applies to a sale.
 

No. The 1% Additional County Rate of tax does not apply to the gross receipts derived from taxable admission charges sold before July 1, 2026.

Note: The date of an event and the date tickets went on sale for an event do not impact the tax rate that applies to a sale.

Returns are changing to add the 1% Additional County Rate of tax.

You are required to use the 10-14 version of Form E-500.

Form E-500 version 10-14 is available in the following formats:

• Electronic - The Online File and Pay System provides the correct form version.
• Coupon Booklet - If you were previously mailed a sales and use tax booklet, use the detachable returns for the period ending June 30, 2026.  
• Printable - Click the following link: Form E-500 version 10-14.

Note: You are required to use new sales and use tax returns for periods beginning on or after July 1, 2026.

You are required to use new sales and use tax returns for periods beginning on or after July 1, 2026. 

Updated forms are now available in the following formats:

• Electronic - The Department has updated the Online File and Pay System. 
• Coupon Booklets - If you receive sales and use tax booklets by mail, you will receive updated forms by mail in July or August. 
• Printable - Click below to access updated printable forms:
  • E-500, Sales and Use Tax Return.
  • E-536, Schedule of County Sales and Use Taxes.
  • E-554, Consumer Use Tax Return.

Updated forms are also available by calling 1-877-252-3052.

You are required to use the 10-14 version of Form E-500.

Form E-500 version 10-14 is available in the following formats:

• Electronic - The Online File and Pay System provides the correct form version.
• Coupon Booklet - If you were previously mailed a sales and use tax booklet, use the detachable returns for the period ending June 30, 2026.  
• Printable - Click the following link: Form E-500 version 10-14.

Note: You are required to use new sales and use tax returns for periods beginning on or after July 1, 2026. 

No. You are required to use new sales and use tax returns for periods beginning on or after July 1, 2026.

Updated forms are now available in the following formats:

• Electronic - The Department has updated the Online File and Pay System. 
• Coupon Booklets - If you receive sales and use tax booklets by mail, you will receive updated forms by mail in July or August. 
• Printable - Click below to access updated printable forms:
  • E-500, Sales and Use Tax Return.
  • E-536, Schedule of County Sales and Use Taxes.
  • E-554, Consumer Use Tax Return.

Updated forms are also available by calling 1-877-252-3052.