McCrory unhappy with local sales tax change in Senate budget

RALEIGH, N.C. (AP) — Gov. Pat McCrory says he is opposed to part of the North Carolina Senate budget that reworks how local sales taxes are distributed to benefit smaller counties.

The governor says the change could result in millions of residents seeing taxes increased to make up for lost revenues.

McCrory spoke Wednesday to The Associated Press shortly after the Senate gave tentative approval to the $21.5 billion two-year spending plan.

The Republican governor says there are good things in competing Senate and House plans, but there is also a wide gap between them.

The Senate plan would shift sales tax revenues so that more of the proceeds would be distributed on a per-capita basis instead of where purchases are made. Urban and beach counties could be the biggest losers under the shift.

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