Should sales tax increases be approved by the county or for the city, Roanoke Rapids residents would have to pay both.

Both governments are considering sales tax increases, the county a .25 percent increase to prevent using fund balance and the city to help pay the Roanoke Rapids Theatre debt.

The city has yet to give a specific figure, but Mayor Emery Doughtie said today he would like to see a penny increase for Roanoke Rapids.

If the proposed increase in the county passes and if Roanoke Rapids levies  one after approval from the General Assembly, the sales tax in the city would be 9 cents and the tax in the county would be 8 cents. The current sales tax rate is 7 .75 cents. The city figure is derived from the .25 percent proposed county increase and the penny increase figure Doughtie would like to see.

While both governments are using different approaches — the county getting its through a Medicaid tradeoff and the city through the legislature — the results would be the same.

“That’s true,” County Manager Tony Brown said when asked if Roanoke Rapids would have to pay both taxes.

The county sales tax increase is countywide while the one in Roanoke Rapids would apply only within the city limits.

County commissioners Tuesday approved moving forward with its plans for a referendum on the matter, most likely in February. The city has only discussed the proposal with its legislative delegation after Councilman Ed Liverman said it was something that needed to be explored.

Doughtie concedes a sales tax increase is a tax. It is one, he believes, which targets a wider section of a people and is more equitable because people visiting the city would have to pay it. “We’ve got to get the money from somewhere,” he said, “Or else, have a (property) tax increase.”

The mayor’s idea is to have a sales tax increase go for the city’s theater debt and once it is paid rescind the tax. Doughtie said a 1 cent sales tax increase would generate $1 million.

The county would also generate $1 million from its sales tax, Brown said.

The county is seeking a sales tax increase to prevent going into its fund balance to balance the budget like it had to do for this year’s financial plan. “I’m not happy about doing it,” Brown said. “With the economy and no growth, we have to seek additional revenues. Efficiency is still an ongoing process. It’s difficult to find $2 million (in cuts).”

The county took $2 million from its fund balance to balance this year’s budget.

County commissioners must pass a resolution for a voter referendum. 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 commissioners Tuesday to generate the same amount through property taxes 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.