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Monday, 07 February 2011 18:37

Brown sees no need now to enact sales tax


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Nearly a week after voters approved a quarter cent sales tax, Halifax County Manager Tony Brown said he sees no immediate need to implement it.

Brown made his remarks today as commissioners discussed the proper way to thank the county voters who approved the referendum Tuesday.

“We now have more diverse funding options for the county,” Brown told the board. “The budget still looks in decent shape.”

Following the meeting Brown said the operation side of the budget looks good. “What’s in question is capital and outside funding requests.”

Those outside funding requests come difference agencies who typically request from the county, Brown said. “That’s where we have to use fund balance.”

Brown said while it is too early to tell if cuts will have to be made in those areas, further review of the budget will be necessary. Still, he said, he has no plans to request the quarter cent sales tax be enacted.

Halifax County citizens last week approved the quarter cent sales tax in a referendum which saw less than 7 percent of its registered voters go to the polls.

There were 2,367 votes cast with 1,551 voting for the sales tax and 812 voting against it. According to unofficial results, 6.77 percent of the voters went to the polls.

Commissioners during their meeting today also discussed the best way to thank the public, agreeing on a split vote to thank those who voted for the referendum in a letter which will be distributed to the press.

The history of the sales tax in North Carolina began in 2007 when the General Assembly agreed to cover the full cost of Medicaid and started paying the county share.

To cover this expense, legislators traded one-half cents that used to go to local governments.

The assembly also allowed counties the option of enacting a quarter cent sales tax to recoup some of the revenue lost in the tradeoff, a document prepared by the county says.

The county is holding this referendum because it has seen large decreases in its property and sales tax streams and tremendous demands for the work it does for the citizens, according to the document. “Though there have been areas where workload has lessened — permits and inspections — most areas have remained steady and many have increased,” the document says, including the Department of Social Services and the Health Department.

This is because of, according to the fact sheet, increased unemployment and expanded eligibility. “These services are mandated and adequate staffing levels are required to be able to provide those services.”

The document says it is not wise to use cash reserves to cover operational expenses. “This has been done by Halifax County over the last two years and the board of commissioners wants to have other options in lieu of fund balance.

“With the ongoing budget crisis, the board needed to expand revenue sources and, in September, moved to have the sales tax referendum put to the voters.”

If passed by the voters, the board of commissioners would then have the option of implementing a local one quarter cent sales tax.

“Sales taxes,” the document says, “spread the burden of revenues to a larger audience. The majority of Halifax County revenues are derived from property taxes, which means a larger burden is placed on property owners.

“Sales taxes provide opportunities for non-property owners, including those who do not live in the area, to contribute to the needs of county citizens.”

 

The sales tax will not apply to the following:

 

Groceries or non-prepared foods

 

Buying vehicles

Buying gasoline

 

Buying prescription drugs

 

The quarter cent sales tax will, with the current economy, provide about $1 million in revenues. “The only other revenue source the county has at its disposal is property taxes,” the document says. “To raise $1 million in revenues via property taxes with the current tax rate, it would require at least a 3 cent increase in the tax rate — 68 cents to 71 cents.”

For every $4 someone would spend they would pay an extra penny

If a person spent $10,000 per year they would spend an extra $25 per year

If a person owns a $100,000 home and the tax rate was increased to 71 cents, they would spend an extra $30 per year.

 

 

Lance Martin

Lance Martin

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

comments  

 
+2 #2 Anthony Finney 2011-02-08 13:51
Don't normally agree with you, Huh?!?!?, but I feel the same way. If the increase wasn't needed right now, then it was a bit premature to vote on it. And since when does the government get to take our votes and hold onto them until future desire to use them? Frankly, if the tax payers and voters said increase taxes, well then increase them!! But don't sit there and tell us "That will be part of our budget discussion. My goal was to have it passed but not to have it implemented. Just because it passes doesn’t mean we will implement it. We can use it this year, next year, in five years or never," Mr Tony Brown. Well my goal is to have fair representation or who doesn't take a vote and then try to throw it in our faces 5 years from now!! If you are not going to use it now, discard the vote, and have another vote when you NEED the money, not when you WANT the money!!
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+4 #1 Huh?!?!? 2011-02-07 23:19
So as I thought, they asked for the vote, got approved for the tax increase, and are gonna sit on it until the FEEL like adding it! I think that if it isn't put into action in 90 days, it should be dropped! What gives governing bodies the right to sit on stuff like this for a year or more?!? I voted for Reagan, but that winning election didn't get him in after his terms were all over with now did it? Sounds like they got some fishy plans in action in Halifax County.....
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