Board likely to OK tax vote

ncmom · Aug 11, 2007

If they don't need the money, why even waste time talking about it?

Board likely to OK tax vote
Land-transfer tax, increase in sales tax could be on the November ballot

The county could one day levy a tax on land sales.

By Sarah Nagem, Staff Reporter
SMITHFIELD -- County Commissioners will likely vote to put new tax options on the November ballot in Johnston.
Commissioners are expected to decide Tuesday whether to put to public vote a land-transfer tax and quarter-cent increase in the sales tax. State lawmakers recently gave counties those options. But some commissioners in favor of a public vote say they’re unsure if they’re in favor of a sales-tax increase or land-transfer tax.

“That’s putting the horse way ahead of the cart, in my opinion,” said Commissioner Jeff Carver, who said it’s too early to say if either tax option is needed in Johnston. “I’m not for any tax if we don’t need it.”

Commissioners Cookie Pope and Wade Stewart said the county doesn’t need the increases at this time. “I don’t like either one of them,” Pope said of the options. “To me, it’s like having a box of Band-Aids. They’re there if you need them.”

The county doesn’t need a financial Band-Aid right now, Pope said. Stewart agreed. “It may be the case five years or 10 years down the road, and someone may have to implement a tax,” he said.

Annual growth in county tax receipts is proving sufficient to support the county’s needs, said Stewart, who wants Johnston to have a lower sales tax than surrounding counties. The current sales tax is 6.75 cents. That includes the state and local levy.

Commissioner DeVan Barbour is in favor of putting the options on the November ballot. But like Stewart, he thinks Johnston could draw shoppers from near and far if its sales tax were lower than those in surrounding counties.

Even if Johnston voters are in favor of a higher sales tax or a land-transfer tax, Barbour said he would not vote to implement either. The November referendum would be nonbinding, so commissioners would have to approve either option that won a public vote.

Commissioner Tony Braswell said he’s in favor of putting the options on the ballot. Maybe a tax increase isn’t necessary now, he said, “but where are we going to be next year?”

Other commissioners said they feel the same way. Ray Woodall said he would support the option voters chose.

Commissioner Allen Mims said a land-transfer tax was fairer than a higher sales tax. “I don’t want to put our businesses at a disadvantage,” he said.

If commissioners eventually levy a land-transfer tax, Mims said he would like to see property taxes cut.

The county’s Blue Ribbon Committee on Growth and Finances, set up by commissioners this year, supports putting the options to a public vote. The 39-member committee includes town representatives, school leaders, Realtors and builders.

But Blue Ribbon members aren’t saying which option they prefer, said Allen Wellons, co-chair of the subcommittee. “[Commissioners] are elected to make those tough calls,” he said.

A land-transfer tax would add about $4.5 million a year to county coffers, while a quarter-cent increase in the sales tax would add about $3.4 million a year, according to estimates.

“We do think [the money] ought to be dedicated to school construction or debt,” Wellons said.

But some commissioners said they would not want to earmark all of the money for schools. While schools are always atop the money-getting list, the county also needs money for the jail, landfill and other things, Barbour said.

“Priorities can change in the county at any given time,” he said.

Mims said the school system shouldn’t get all of the money. “Don’t get me wrong, I’m not planning to give them everything they want over there,” he said.

Herald Staff Reporter Sarah Nagem can be reached at 934-2176, Ext. 137, or by e-mail at snagem@nando.com.
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Kelyel · Aug 11, 2007

I would like to see this on the NOV. Ballot.
Let the people -VOTE- their choice.

Election Day is NOV.6th. But right now there is nothing to VOTE for/aganist in our area, there are no county/stae/national positions up for election/reelection. The only JoCo's voting that day are town residents. (Town Elections)

EngNCSU · Aug 12, 2007

Maybe this makes too much sense, but why wouldn't you put the money from the land transfer fee into a "Infrastucture Fund" to be used to pay for schools, water system improvements, ROADS, and other needed infrastructure needs, a lot of which are or were caused by the huge growth in the county?

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Board likely to OK tax vote

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