State Republican lawmakers believed giving Roanoke Rapids legislative authority to hold such a referendum would set a precedent throughout the state, according to Senator Ed Jones.

Jones said while Republicans understand the needs of the city, they believed it would become a political issue.

Jones said Republican leaders have assured him all parties would sit down and discuss other alternatives to help the city, just not through a legislative bill.

“We're still working on a compromise,” Jones said. “There was a feeling this would be political suicide.”

The senator said there was a split in the committee discussing the matter and that no one criticized the city for undertaking the theater project, which led to council looking for alternatives to pay the debt of the venue. “Everyone had good intentions. When you look back it didn't work and now you've got to look at how to make it succeed. Hopefully, someone will want to buy it.”

Mayor Emery Doughtie could not be reached for immediate comment this morning.

The city was considering the sales tax to pay close to $23.4 million in theater debt.

“The bill, as envisioned by the city, would allow the residents of Roanoke Rapids to vote on a referendum allowing for a 1 cent local sales tax to be charged within our city limits only and to benefit the city alone in order to pay its debt obligations relating to the Roanoke Rapids Theatre,” a draft said.

The letter said while the debt of the theater is $21.5 million, the balance, if paid off early or refinanced is closer to $23.4 million. “The city’s present annual debt for the theater is over $1.7 million or 11.33 percent of our budget. The city wishes to control this debt in a manner that does not place a heavy burden on our local property taxpayers. We believe a sales tax of 1 cent, using the standard exemption to sales tax recognized by state law, is the best way to repay this debt.”

The difference between this request and others, the letter said, was the city was requesting a sales tax for just the incorporated limits of its jurisdiction, not the unincorporated areas of Halifax County.

“Also, this is merely a request for authorization to hold a referendum on the question of the local sales tax and, if passed, permission to enact it by the city council. This is not an outright request to apply the tax without first going to our residents for a vote of approval. We believe this is the way to govern ourselves and give us a path to take care of our own debt without asking the state for direct or indirect assistance with repayment.”

The letter noted the city estimates an annual sales tax just in the city limits will produce an annual revenue of $1.7 million to $2.1 million. With the exception of possible administrative fees, the amount projected was close to the annual debt of the theater. “Our request would be to use these proceeds only for theater debt, apply it only until the theater debt is paid in full and then the local sales tax should expire.”