Halifax County commissioners today began the process that could lead to a referendum on a .25 percent sales tax increase to prevent using fund balance and a property tax increase to balance the budget.

Commissioner Gene Minton voted against the measure, calling the proposal a tax and spend method.

County Manager Tony Brown outlined the proposal to commissioners at the board’s morning meeting.

He said the state allowed counties this option in 2007 after it assumed the county’s share of Medicaid.He said the board must pass a resolution for a voter referendum, most likely in February. If the referendum passes and the board desires to levy the tax, it must give 10 days notice of its intent to adopt a resolution doing so. The county would also have to provide 90-day notice to the state secretary of revenue.

The sales tax does not apply to groceries, buying new vehicles, buying gasoline or prescription drugs, Brown told the board.

“This local option sales tax will generate an additional $1 million for Halifax County. To generate this amount via Halifax County property taxes, it would require an additional 3 cents on the tax rate. For every four dollars a person would spend on eligible products, (they) would pay an extra penny on those products,” Brown noted in an information sheet on the proposal.

Brown said the sales tax increase would help the county in the depressed economy. “Service needs of citizens have increased substantially with more citizens out of work and eligibility for services being expanded.”

Brown noted county operations have been reduced to a level of not being able to adequately provide them. “The potential for additional program cuts, layoffs and reduced staff hours is very likely.”

County revenues are down, Brown said, sales tax by 28 percent and interest earned accounts by 78 percent while county expenses are increasing.

“A local sales tax would diversify our revenue stream and would spread the burden of the cost of providing services so it does not fall solely on property owners,” Brown said in his report. “A local sales tax would capture revenue from those who do not own property in the county so they could help share in supporting citizen needs.”

The increase, he said, “Would capture revenue from those who live outside the county, but come to the county to visit, shop and work. This would include those traveling through our area on Interstate 95.”

Brown told commissioners, “We’re trying to lessen the burden by trying not to increase the property tax rate and using the fund balance to balance the budget.”

Commissioner Rives Manning said he was opposed to taxes. “I’m opposed to any increase in taxes.”

However, Manning said, “I believe this may be the fairest way to do it. We’ve got to have money to operate. It’s another tool in our bag to operate the county.”

Commissioner Carolyn Johnson said she believed one of the things the public would question is how the money would be spent.

Brown said it is too early to determine that and the current objective is to use it to prevent raising taxes.

“I do believe this may be a method of taxing and spending,” Minton said. “I’d like to see the sales tax increase and the property tax decrease.”Minton believes the county must continue to seek efficiencies in the way the county is run. “We need to look at the real needs and not think about how to spend more money. This Band-Aid approach is keeping us from doing that.”

Brown said following the meeting the next step is to put together an information sheet on the proposal. He said the only thing he can do as county manager is educate the public on the matter and not advocate it.