General Assembly bill could add 1% tax to restaurants in Southport

SOUTHPORT, NC (WWAY) — A bill headed to the North Carolina General Assembly could implement a 1% sales tax on prepared foods in Southport. That includes food made at restaurants, cafes, and grocery stores.  

After the Board of Aldermen approved a resolution to support the bill last week, it will now be sent to the city’s representatives in Raleigh–Rep. Charles Miller and Sen. Bill Rabon. If it’s passed, citizens would vote on the measure in November.  

City Manager Noah Saldo said the tax will be used to expand city services without having to significantly raise property taxes.  

“We’re grateful to have so many tourists come every year but they don’t contribute to the property tax, so this is a way that they can contribute,” Saldo explained. 

Though not everyone is convinced. Lisa Hinderson works as a bartender at a restaurant on Yacht Basin Drive and has lived in the area for more than 30 years.  

She said she’s skeptical the measure would pass on a ballot.  

“Especially now because everything is so expensive as it is, people are struggling. It’s already expensive, I just don’t really think now’s the time,” Hinderson said. 

Hinderson said her biggest concern is knowing what the money would go towards. Saldo explained the revenue would help expand emergency services and improve the town’s infrastructure  

The sales tax that people currently pay at restaurants is split between the county and other municipalities in the state.   

A 1% tax, Saldo said, is a way to ensure money that’s spent in Southport goes back to Southport. 

“This is another form of guaranteed income to the city to make sure that we can continue to have the best public safety and infrastructure for our citizens, residents, and visitors alike.”  

If the measure makes it to the ballot this November, the earliest residents and visitors would see a 1% tax their bill would be 2026.