Polls open at 6:30 a.m. and will close at 7:30 p.m. for the countywide referendum on a proposed quarter cent sales tax Tuesday.

All 30 precincts in the county will be open with Littleton precincts 1 and 2 voting at the Littleton fire station.

Its outcome will allow commissioners to enact ,if they believe it needs to be done, a quarter cent sales tax.

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

Seventeen counties have approved the quarter cent local sales tax and 11 are having referendums in the upcoming months.