N.C. Disposal Tax Information
North Carolina’s Solid Waste Disposal Tax was created by Session Law 2007-5550 and implemented on July 1, 2008. The excise tax is imposed at a rate of $2 per ton on the disposal of municipal solid waste and construction and demolition (C&D) debris in landfills in the state and on the transfer of municipal solid waste and C&D debris to a transfer station for disposal outside of the state. The disposal tax applies to all in-state municipal solid waste and C&D landfills and all transfer stations shipping waste out-of-state for disposal.
Disposal tax revenues are collected by the state and distributed for three uses:
- 50 percent to the Inactive Hazardous Sites Cleanup Fund to help assess and cleanup pre-1983 landfills. Up to 19 percent of the funds credited here may be used to fund administrative costs related to solid and hazardous waste management
- 37.5 percent distributed directly to cities and counties on a per capita basis with one half of the amount distributed to each † and
- 12.5 percent to the General Fund.
Local governments are encouraged to use disposal tax proceeds as a source of funds for investing in recycling and waste reduction programs and services that will expand and enhance the ability for the public to remove materials from the waste stream and decrease the amount of waste sent to landfills.
Below you will find additional information and links on the Solid Waste Disposal Tax and its distribution:
- Solid Waste Disposal Tax proceeds are distributed to eligible local governments on a quarterly basis. Information on Solid Waste Disposal Tax distributions can be found on the N.C. Department of Revenue Local Government Distributions website.
- Landfills and transfer stations should use Form E-500K to file and report North Carolina solid waste disposal taxes.
- Additional information from the Department of Revenue on the Solid Waste Disposal Tax is available.
- Information on the efforts to address pre-regulatory landfills closed prior to 1993 that are supported by Solid Waste Disposal Tax proceeds is available from the Division of Waste Management’s Pre-Regulatory Landfill Unit in the Inactive Hazardous Sites Program.
For more information or questions on the Solid Waste Disposal Tax, please contact Wendy Worley at (919) 707-8136.
† Note: According to G.S.105-187.63(2), disposal tax proceeds to municipalities and counties must only be used for solid waste management purposes, including recycling.