School System Saves Sales Tax through Interlocal Agreement with County

Under a deal approved by the Wake County (N.C.) Board of Education in March, 2007, the school system may save millions in sales tax from construction projects. By transferring title to property to be constructed or renovated to Wake County, the school system will be able to take advantage of the sales tax rebate enjoyed by county governments. The deal could save the school board an estimated $11 million to $13 million in sales tax from its current $1.056 billion construction program. The county would return the title to the school system within 60 days of closing out projects.

A draft agreement between the County Commissioners and Board of Education may be accessed at http://www.wakegov.com/agendas/2007/march12/08/01agreement.htm. (This entry posted by Liz Riley of Womble Carlyle's construction and real estate practice group.)