Special Taxing District

State Action Needed

Municipalities can establish a special taxing district in North Carolina to assess additional property tax on assets located within the designated district to fund projects and services specific to a district. Existing special taxing districts in North Carolina include efforts to address beach erosion, hurricane protection, downtown revitalization, transit oriented development, public schools and watershed improvement.

At this time, it appears that state-level legislation does not enable this kind of district to be established in North Carolina to collect revenue for early education purposes. There are, however, some special taxing districts that provide revenue to public schools.

The North Carolina General Assembly could enact changes to the statute governing Business Improvement Districts or other special taxing districts to allow for the allocation of these dollars to include early education.