RALEIGH – Republican Governor Pat McCrory had taken the unusual step of threatening to veto a bill even before its clears the General Assembly, putting that threat on a plan that would redistribute the portion of sales tax money returned to local cities and towns.

“This bill will result in a tax increase for millions of hard working middle-class families and small business owners throughout North Carolina,” Governor McCrory said in a statement issued Tuesday afternoon and took a swipe at some members of his own party in the process. “Redistribution and hidden tax increases are liberal tax and spend principles of the past that simply don’t work. More importantly, this bill will cripple the economic and trade centers of our state that power our economy.”

The governor issued the statement only hours after a group of rural lawmakers and local elected officials met with reporters at the General Assembly to push for the change, which is one issue that is delaying a final deal on the state budget.

Right now, 75 percent of the two cent sales tax returned to communities goes back to where it is collected – and rest is handed out based on population. This benefits larger cities with plenty of shopping, such as Mecklenburg and Wake Counties at the expense of rural counties.

Supporters of the change argue that much of the money comes from rural consumers who visit the bigger cities to spend money, so more of those dollars should be returned to less populated hears to help with schools and other vital needs.

The Governor said the tax proposal, known SB 369 would be more accurately titled the “Tax Increase, Redistribution and Spending Act.”

The governor also pointed out how funding has been targeted to rural areas, those that would benefit by the redistribution of the tax money.

Among the significant public investment that has been made in rural North Carolina since Governor McCrory was sworn into office in January 2013, is $84 million from specially targeted funds and programs to grow the economies of non-metropolitan areas.