The Orange County Board of Commissioners could decide tonight whether to ask voters to approve an additional 1/4-cent sales tax in a November referendum.
Current state and county sales taxes add up to 7.75 percent in Orange County, and the new tax would bring the total to 8 percent.
Commissioners have not yet decided how they would use the extra sales tax.
Because of the economic recession, the county's share has been dwindling along with overall state sales tax revenues. A memo from County Manager Frank Clifton suggests additional sales tax would decrease the county's reliance on property taxes.
The quarter-cent tax would generate about $2.3 million per year, according to the memo.
Under current law, the new tax could take effect no sooner than July 1, 2011, but the N.C. General Assembly is considering a bill that would move up the permitted start date to April 1, creating a potential revenue stream of about $575,000 for the last three months of next fiscal year.
Commissioners need to decide by mid-August whether to take the referendum to the voters, but they'll soon go on summer break. Clifton is also asking them to consider spending $40,000 to educate voters on the additional tax and how it would be used.
Comments
Who, what, when and where?
Tue, 06/15/2010 - 18:44 — CitizenWillA few questions I'd like to see answered before voting up or down:
1) Who does this primarily hit? Who primarily benefits? Most of the out-of-county sales revenues are generated within the municipalities but none of the $500K to $2.5M will go back into those communities directly. %1/4 doesn't sound like much but it's going to hit folks struggling the hardest.
2) What will the money be used for? $500K to $2.4M could do wonders within the human services area but amounts to a drop in the bucket if put into the schools or general funds. Debt reduction, since the County is coming off a borrowing spree, is another attractive option.
3) When will the tax increase happen and, as important, will it ever be curtailed? When will citizens get a clear message on the BOCC intentions? When will they have a chance to weigh in PRIOR to the referendum?
4) Where will the money be applied? Where will it do most use? Where will the downside appear - in local media only or will the County include that analysis in their sales pitch?
Lotsa Luck, Will
Tue, 06/15/2010 - 21:16 — elvisboy77They haven't even thought of any of that. They just don't want to cut the budget, since everything in the budget is so critical and necessary to life in Orange County. People will die if any entitlements are cut!
So they will mash the "easy button" instead, (even though they do not understand why they should shop at Staples instead of Office Max). These are, after all, financial geniuses we are talking about.
So pipe down, Will and quit asking questions. You just don't understand.
And, oh by the way, Shop Orange First. Like the County does. Yeah.
They should raise it 2 cents
Tue, 06/15/2010 - 18:29 — elvisboy77And reduce property taxes. We need a VAT like Europe, yeah, that will fix everything, LOL!
If this is approved then I can do even more shopping in Durham and save myself some money. As it is, the only thing I buy here is groceries.
What a great economic development plan, raise sales taxes. Why didn't I think of that?
Orange county= one of a kind!