Senator Berger's Proposal Putting Strict Guardrails on Guilford Tax Referendum Approved Unanimously
New version of House Bill 305 protects taxpayers by requiring clear language on the ballot
Municipalities, GTCC, fire districts, and schools are guaranteed to receive portions of the new revenue if approved by the voters
Raleigh, N.C. – Today, the North Carolina Senate approved a new version of House Bill 305, which puts strict guardrails on the use of a proposed one-quarter of one cent sales tax and supports municipalities that continue to keep their property taxes low.
Earlier this month, the Guilford County Commissioners voted to put the sales tax referendum on the November 2026 General Election ballot. While the commissioners said they want to use the additional revenue to support education, existing law does not restrict the use of funds collected to education or any particular purpose.
The new version of House Bill 305, as amended by Senate Leader Phil Berger (R-Rockingham), changes that and requires the ballot to have clear language explaining that if the referendum is approved, the funds collected can only be used for classroom teacher salary supplements, fire protection equipment and services, Guilford Technical Community College, and a small amount for municipalities.
House Bill 305 now outlines a required distribution model if the referendum is approved.
“Voters going to the polls in November 2026 need to know exactly what they’re being asked to vote on. House Bill 305 now provides them with information so they can make an educated decision,” Sen. Berger, who represents part of Guilford County, said. “I believe putting strict guardrails on the revenue collected gives taxpayers relevant information and guarantees the funds will be used as promised.”
It is estimated that in Guilford County, a one-quarter of one cent sales tax would generate $25 million. If passed, the funds would be partially allocated to municipalities in Guilford County based on a formula that takes population and current ad valorem taxes into account. After that, the balance would be distributed in the following ways:
20% or $5 million, whichever is greater, to the Guilford County Fire and Rescue Council for equipment purchases or capital expenditures necessary to provide fire protection services in the county.
10% or $2.5 million, whichever is greater, to Guilford Technical Community College for capital expenditures.
The remainder would fund additional classroom teacher salary supplements.
The changes to House Bill 305 enjoy broad support, including all Republicans representing Guilford County in the General Assembly.
Rep. John Blust (R-Guilford) said, “I am happy to work alongside Sen. Berger in getting the original language for tax fairness for the Town of Stokesdale done.
“As a conservative, I am happy to also support the changes made by Sen. Berger to H305. The changes will give voters confidence in how the quarter-cent sales tax will be spent if it were to pass.
“The current county commissioners have not proven to spend responsibly, which is why the General Assembly must step in and provide specific oversight and protect Guilford County taxpayers.”
Rep. Alan Branson (R-Guilford) said, “The changes to H305 are in line with what I believe will give the voters a clear choice in Guilford County. The restrictions that Sen. Berger has placed on the sales tax will ensure the tax funding is distributed appropriately to areas that the Guilford County government has left behind and will ensure the funding actually reaches these priorities, which would not have been possible without the General Assembly stepping in.
“From fire districts that keep constituents safe that have been underfunded, to GTCC that is fueling growth in manufacturing and aviation, to our small towns that are providing essential services across my district, and as a father to a teacher, these funding items are the priorities that I believe residents of Guilford County will truly have confidence in.
“I look forward to working with Sen. Berger and Rep. Blust in getting this passed in the House as soon as possible.”
Pinecroft Sedgefield Fire District Chief Derek Carson said, “As President of the Guilford County Fire and Rescue Council, I would like to express my sincere gratitude to the N.C. General Assembly and to Sen. Berger for the continued support of Guilford County Firefighters as outlined in House Bill 305. This is a forward-thinking and collaborative approach that would positively impact firefighters and all the fire districts within Guilford County, both now and for years to come.”
Guilford Technical Community College President Dr. Tony Clarke said, “We thank Sen. Berger and the Guilford County Commissioners for including GTCC in the sales tax initiative. Guilford County and the Triad are experiencing rapid growth as evidenced by the recent announcements by JetZero, Boom Supersonic, Toyota, and others. At GTCC, we are steadily increasing our enrollment across almost all programs. This reliable stream of funding for capital renovations and repairs will enable us to maintain and improve our facilities to offer new technical programs and increased classroom space as we grow to serve Guilford County and the Triad. We look forward to continuing to share the positive impact that this funding will have on our college and our students.”
Guilford County Board of Education member Crissy Pratt said, “As a former teacher, I understand how important it is for all of our public school employees to feel valued and appreciated. Every investment in our public schools is an investment in our future. As part of that investment, we aim to attract and retain the most qualified teachers for our classrooms in Guilford County. If this referendum passes, it’s imperative that our residents have confidence that their hard-earned tax dollars will be used directly to support the individuals who educate their children. The distribution model in House Bill 305 does exactly that.”
Guilford County Board of Education member Linda Welborn said, “We are very grateful for legislators’ actions and support of our teachers. Our compensation has fallen behind that of other large districts, making GCS less competitive for attracting and retaining high-quality teachers. We understand that teachers are the number one factor in student outcomes.”
House Bill 305 now returns to the House of Representatives for final approval.
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