North Carolina Amends Sales and Use Tax Laws for Advancing Vehicle-Infrastructure Enhancements

The North Carolina Governor signed a law to amend the state’s sales and use tax laws, and to enact the Projects for Advancing Vehicle-Infrastructure Enhancements (PAVE) Act. The main provisions of the law include: 1) expanding the definition of “public transportation system” to include emerging infrastructure for automated transportation of people and freight; 2) allowing counties to levy an additional 1 percent sales tax for financing, constructing, operating, and maintaining public transportation systems; and 3) creating a new metropolitan public transportation authority for counties over 1 million population. [H.B. 948, enacted 07/01/25]

This story was produced by Bloomberg Tax Automation, ...