The Orange County Board of Commissioners unanimously approved a resolution Tuesday night to raise the county's sales tax to 7 percent beginning Dec. 1 and extending through the end of June 2003.
County Manager John Link recommended the resolution to the commissioners.
"We don't have a choice, given the state has taken ($3.2 million) from us," Link said.
On Feb. 5, Gov. Mike Easley declared a state of fiscal emergency to deal with a projected shortfall for 2001-02, leading to a revenue loss of more than $700,000 for Orange County.
In total, the county has lost about $3.2 million in reimbursement funds county officials expected to receive.
"It has to be done because the state won't raise taxes," said Commissioner Margaret Brown.
About 50 or more counties have decided to enact the tax, Link said, because the state government has left the decision to individual counties.
The tax will be on consumer goods and prepared food, but unprepared food from supermarkets will not be taxed.
"This is not a sales tax on food," said Barry Jacobs, chairman of the Board of Commissioners.