The state is taking significant sales tax revenue from every county to cover its SNAP benefit costs

Estimated annual local sales tax revenue that the state will withhold from counties to cover the state's share of SNAP benefit costs

After the federal government shifted SNAP benefit costs onto the state, the state will cover its financial obligation by taking local sales tax revenue from every county. Counties could lose anywhere from $9,000 to $62 million each year under this policy.

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Under current law, states are responsible for a portion of SNAP benefit costs beginning in federal FY2028, which begins on Oct 1, 2027. This means that in state FY2028 (July 1, 2027 - June 30, 2028) counties would have to cover nine months of costs. This analysis estimates the full annual cost that counties could pay in future years, based on the FY2025 payment error rate.

Chart: NC Budget & Tax CenterSource: NC Association of County CommissionersGet the data