RALEIGH N.C. The North Carolina Legislature has tentatively given its OK to letting residents of Durham County decide if they want a 1-percent tax levied on restaurant meals as a way of supporting a local civic center and cultural undertakings.
Proponents have estimated that the tax would generate more than $4 million annually if the initiative is approved by a majority of voters in the November election. Both the North Carolina House and Senate recently voted in favor of allowing county commissioners to authorize the public referendum, though it must undergo a final vote before the Legislature adjourns. The timing of that is unclear.
On Wednesday the Senate voted 20-18 in favor of permitting a referendum, while last week's House vote was even closer, at 60-59.
If approved by voters, 80 percent of the proceeds would support cultural amenities such as a minor league baseball museum and the Durham Civic center, with the balance to be used on marketing, community clean up and workforce training.
The North Carolina Restaurant and Lodging Association has lobbied against the bill, saying it unfairly targets restaurants.
State Sen. Neal Hunt, a Raleigh Republican, was quoted in the Raleigh News Observer as saying it was not a good time to tax restaurants and that he had heard from Durham operators who were already struggling in the bad economy. Legislators in favor of the tax have pointed out that other nearby counties, including Wake, Dare and Mecklenburg, already have meal taxes.
