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Cary to continue grocery tax and place 1% non‑home‑rule sales tax on consent agenda to fund roads
Summary
Village staff briefed the Committee of the Whole on July 15 that state action will remove the current grocery sales tax on Jan. 1, 2026 unless Cary passes a local continuation, and staff recommended the village also use new authority to adopt a 1% non‑home‑rule local sales tax to help fund roads and other capital needs.
Village staff briefed the Committee of the Whole on July 15 about two revenue items: continuation of the grocery sales tax and a proposed 1% non‑home‑rule local sales tax. Staff said state legislation will remove the automatic grocery sales tax effective Jan. 1, 2026 unless municipalities enact local continuations; the village’s estimate for the grocery tax continuation is roughly $600,000 a year in recurring revenue.
The committee also discussed newly available authority for non‑home‑rule municipalities to adopt a local general sales tax since the fiscal‑year‑2025 budget process, staff said. That option allows non‑home‑rule communities to adopt up to 1.00% in increments (quarter‑point steps are…
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