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Urban and Rural NC Officials Fight Over Tax Distribution

Representatives from North Carolina's rural and urban areas are divided in a debate that's extended past party lines over a proposal to give poor rural counties a larger share of sales tax revenue.

A piece of the Senate budget released last month would send less tax revenue to counties from where the sales occurred, and distribute it to counties more on a per-capita basis. The shift would occur over five years.

Rural residents like those in Caswell County near the Virginia border argue they're now at a disadvantage when their residents leave to shop in other counties. Urban leaders say sales taxes they collect maintains the infrastructure around their business communities.

The proposal will be a part of budget negotiations between the House and the Senate renewed this coming week.

 

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