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Cary board moves to continue grocery tax, considers 1% non‑home‑rule sales tax for infrastructure
Summary
Village staff briefed trustees on state changes to grocery sales tax and new authority for non‑home‑rule sales taxes; trustees directed staff to place continuation of the grocery tax and a 1% non‑home‑rule general sales tax on the consent agenda for formal action at a future meeting and asked for public outreach and legal review.
Nick, village administrator, told the Committee of the Whole on July 15 that state legislation passed in mid‑2024 removes the statewide grocery sales tax starting Jan. 1, 2026 but gives municipalities the statutory ability to enact or continue a local grocery tax thereafter.
“Starting 01/01/2026, the grocery sales tax will be removed, for all municipalities,” Nick said while briefing trustees, and he explained that the village is seeking to continue the local grocery tax rather than allow the revenue to lapse.
Why it matters: staff said the grocery‑tax continuation is not a new levy but a preservation of current local revenue streams. The village’s finance presentation estimated an approximate loss to the general fund of $200,000 in the current fiscal year and about $600,000 in subsequent years if the tax is not continued.
Nick also presented a proposal to…
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