Charlotte council takes steps on new SouthPark tax district. Here’s what that means

Businesses in SouthPark may soon have to pay a new tax to support economic development in the area after the Charlotte City Council voted to move forward with creating a “municipal service district.”

State law allows cities to create the municipal service districts as a way to raise money that must be spent on programs to enhance the district, according to city council.

On Monday, the city council voted to direct staff to prepare reports on district boundaries, tax rate and revenue, and plans for providing services. The vote approved the process for considering the creation of the district.

Charlotte has five existing districts in areas like Center City, South End and University City.

The SouthPark municipal service district was first proposed by SouthPark business owners in 2016 to support economic development in the area, SouthPark, according to the city.

The proposed tax rate for the SouthPark municipal service district would be 4 cents per $100 in valuation, generating an estimated $1.35 million each year, according to the city council.

The money would be used to hire administrative personnel, provide marketing and promotion efforts, enhance safety and support economic development initiatives, according to city council.

More details about the SouthPark district

Some initiatives outlined in previous reports on potential future SouthPark developments include a 3-mile bicycle and pedestrian path and additional access to green spaces.

The boundaries for the district follows the edge of the commercial core, excluding single-family neighborhoods, according to Charlotte City Council.

The boundary would include commercial properties south of Scofield Road and Wickersham Road, west of Sharon Road and Cameron Valley Parkway, north of Sharon View Road and east of Park South Drive.

City staff will distribute a report in January on the particulars of the district.

A public hearing will be held on Feb. 28. The council will vote on the creation of the municipal service district on March 14.

This story was originally published December 13, 2021 at 9:48 PM.

Hannah Smoot

The Charlotte Observer

704-358-5349

Hannah Smoot covers business in Charlotte, focusing on health care and transportation. She has been covering COVID-19 in North Carolina since March 2020. She previously covered money and power at The Rock Hill Herald in South Carolina and is a graduate of the University of North Carolina at Chapel Hill.