How much Mecklenburg's new transit tax made in its first month
Add Axios as your preferred source to
see more of our stories on Google.
Photo: Alexandria Sands/Axios
Mecklenburg County collected about $27.5 million in the first effective month of its new 1-cent sales tax for transit and road projects, records show.
Why it matters: The month of July was the first test of whether Mecklenburg's pitch to collect $19.4 billion over 30 years might hold up, and CATS is already beginning to spend the money to roll out new services.
Reality check: While pushing for the referendum, city officials boasted the tax would generate $345 million per year, nearly $29 million a month.
- That puts July's collection about $1 million short of projections.
State of play: July is likely a strong case study of what the average monthly intake could look like. It's not necessarily one of the best or worst months for spending. Really, it's somewhere in the middle.
- We could see a boom around the holidays when shoppers are buying clothes and electronics, and a slowdown in January when people are trying to save.
- Some items, like certain groceries, are excluded from the tax.
The big picture: Some Charlotte transit riders have already benefited from the new revenue. CATS launched its $2.20 Uber-like microtransit service in west Charlotte, and popular bus routes like Route 9 and 5 are running more frequently.
- The Red Line commuter rail design has passed the 15% milestone, and the designers are working toward 30% completion.
By the numbers: Of the roughly $27.5 million collected, the county distributed $16.5 million (60%) to the Metropolitan Public Transportation Authority for bus and rail projects in October.
The other $11 million was disbursed based on street miles and population:
- Charlotte: $8,122,349.27
- Huntersville: $1,067,716.33
- Mint Hill: $554,772.19
- Cornelius: $454,604.99
- Matthews: $424,885.05
- Davidson: $258,673.54
- Pineville: $124,383.45
Catch up quick: Voters narrowly passed the tax hike in November 2025 with 52% of the vote. It raised the combined state and local sales and use tax rate from 7.25% to 8.25%, kicking in July 1.
- The average household is spending an estimated $20 more per month on the tax, or $240 annually, according to the City of Charlotte's prior reports.
- The new 1% tax was implemented on top of the county's existing .5% sales tax for transportation, approved in 1998, which generated $14.6 million in July.