County commissioners today agreed to hold the public hearing following a presentation by Roanoke Valley Southern Christian Leadership Conference seeking to change the distribution method from ad valorem to per capita.
The Coalition for Education and Economic Security endorses this change, which would, according to the Reverend C.E. McCollum of the SCLC, promote equal funding per person regardless of the area of the county in which they live.
McCollum addresses the board.
McCollum has brought up the issue in previous meetings and today he said he appeared, “To make yet another attempt to appeal to your moral consciousness and humbly ask you to reform local sales and use tax distribution from ad valorem to per capita to enable all school children, including those enrolled in the Halifax County school district, to receive a fair and equitable share in the distribution of the sales tax proceeds.”
McCollum said, “Your vote in April can change the educational and economic destiny of all children in Halifax County and its constituent members by providing municipalities and all school districts — not just two — with greatly needed resources. A well educated citizenry is vital to today's advanced, industrialized society.”
Mills presentation
The proposal, James Mills of the SCLC said, is based on discussions commissioners held at their December retreat and centered on what the 22 taxing districts could have received last year from both methods of the nearly $12 million distribution..
“The change to the per capita method will enable all school children countywide to receive the same financial support from the county,” Mills said. “All towns and our county government will receive an equal amount of sales tax revenue per person living in their district.”
Since taxes are paid by all citizens countywide, Mills said, “that is the same way they should be distributed — per person or per student county. Distribution of countywide sales and use tax revenue by the ad valorem method is distribution determined by the taxing district's wealth as measured by the taxing district's wealth as measured by property value and not related to where the taxpayer lives or where in the county the taxes were collected. The per capita distribution method treats all county residents equal — regardless of where.”
Studying the funding differences, Mills said “the biggest winner is the county,” which would receive 5.3 percent more revenue — $628,370, by the proposal. “Why? Because of the large population living in the county.”
The SCLC proposes the extra county funds be allocated fully to supplement the board's current expense appropriation for education. “This will provide approximately $96 per pupil for all of Halifax County's students in our three public school districts,” Mills said. “Equal and fair distribution of sales taxes for education will be accomplished.”
The Roanoke Rapids and Weldon school systems have received $7.9 million of sales tax distribution over the last 10 years while the county school system has received none of the sales taxes countywide. “This is not an equitable distribution,” Mills said. “Halifax County has changed since 1973 when local sales taxes were instituted to generate needed services and the ad valorem method was chosen by Halifax County as their distribution method.”
He explained, “Rural Halifax towns are smaller, poorer, with fewer methods to generate revenue. County and municipal tax rates have been increased numerous times trying to generate revenue for basic services.”
Tax rates in Enfield, Scotland Neck and Littleton are higher than Roanoke Rapids and other rural municipalities in surrounding counties, he said. “Our small towns have not been able to increase their tax base or population. Our small towns are experiencing negative growth. With extra revenue provided by a per capita sales tax distribution, the towns could afford more services, improving their overall economy — increasing revenues and their tax base. This would benefit both the municipalities and the county.”
Said Mills: “This annual flexible discretionary revenue can lead to tax reductions as well as a rebirth of the local economies and local economic development initiatives.”
Taxing districts which would be impacted are county fire districts and Our Community Hospital in Scotland Neck, Mills said. From calculations presented at the December retreat, Mills said one-third of the fire districts and OCH could adjust their supplemental property taxes by less than 2.2 pennies per $100 valuation and two-thirds of the fire districts would have to adjust taxes less than 1.5 pennies per $100 value to obtain the equivalent revenue to the current system. “A one-and-a-half pennies adjustment would be $15 per year for a $100,000 property.”
Explained Mills: “No plan would provide more revenue for all, but the majority of Halifax County would have more revenue based on today's 21st Century economy with a change to per capita distribution.”
Mills said the report given to commissioners in December and the SCLC's own analysis show “changes are necessary to adequately fund countywide growth. By statute, commissioners must vote in April to change to a per capita distribution of sales taxes … This vote will show citizens that changes can be made which are more equitable to all county residents and students. This equalizing change will help to remove roadblocks from the past, providing our municipalities and school districts with greatly needed resources.”
Chart contained in today's agenda packet showing the gains and losses of the proposal.
Commissioner discussion
Commissioner Rives Manning presented a chart to his fellow board members to demonstrate what the change in the tax distribution would bring about and said this afternoon, “I don't believe the taxpayers can stand that kind of increase. If there was a change and it was given equally to the schools then I believe there would be a tax increase from the county as well. Not only would the districts have to increase their tax rates but the county would have to increase its tax rate under the proposed plan.”
Commissioner Marcelle Smith said he supported Mills' argument. “We have talked about this as a board. Reverend McCollum has been here before. We've had an opportunity to look at the materials. This I do support.”
As the chief of the Tillery Volunteer Fire Department, Smith said he understands fire departments may have to adjust their rates. “I would definitely like to hear from those communities.”
County Attorney Glynn Rollins said the county does not have to have a public hearing on the matter. “If you do change the method all the taxing districts will have to come back with a readjustment.”
Board Chairman Vernon Bryant agreed a public on the matter was in order.
County Manager Tony Brown said the town of Weldon, the only town expected to lose from the proposal, has concerns on the matter.
But Mills said, “The town of Weldon has a great deal of property. With a small tax adjustment Weldon would have a very easy way to increas revenues.”
