FOR IMMEDIATE RELEASE                                   Contact: Todd McGee (919) 715-7336

August 31, 2007                                                                           todd.mcgee@ncacc.org

 

COUNTIES MOVING TO PUT BUDGET OPTIONS ON NOVEMBER BALLOT

Counties across North Carolina are moving quickly to put on the November ballot one or both of the new revenue options included in the state budget passed by the General Assembly last month. The budget included two revenue options for counties – a 0.25 percent increase in the sales tax or a 0.4 percent land transfer tax. A county can only enact one of the two options, and whichever one they enact must first be approved by voters in a referendum.

As of Aug. 30, 11 counties (Brunwsick, Chatham, Gates, Henderson, Hoke, Macon, Moore, Pender, Polk, Swain and Union) had decided to put the 0.4 percent land transfer tax option on the November ballot, nine counties (Columbus, Greene, Hertford, Lenoir, Martin, Pitt, Robeson, Sampson and Surry) were pursuing the sales tax option, and three counties (Davie, Harnett and Johnston) had decided to put both options in front of voters. In addition, four counties (Caswell, Duplin, Onslow and Pamlico) have already announced plans to pursue one of the options in next May’s primary election.

“This quick movement by so many counties throughout the state shows how desperately counties need these additional revenue options,” said NCACC President and Buncombe County Commissioner David Young. “Counties are faced with tremendous infrastructure needs, including almost $10 billion of school capital projects over the next five years and billions more for clean water projects. It is abundantly clear that counties are going to need all the help we can get to keep up with the demands caused by our rapid growth. We cannot keep relying on the property tax to fund all of these needs.”

For 2007-08, 48 counties representing more than two-thirds of the state’s population raised property taxes, the largest number of counties with an increase in a single year in at least five years. A 2006 survey by the Department of Public Instruction revealed approximately $9.8 billion of public school capital needs over the next five years. Many counties are also struggling to keep up with the demands for clean water and wastewater treatment capacity caused by the influx of new residents.

“If we do not have the infrastructure in place to meet the needs of the new citizens, our quality of life will be negatively impacted,” said Young. “These new revenues will help counties invest in their future, assuring that our great state remains a viable and attractive destination for individuals and businesses alike.”

* The Association used 2006 Provisional County Population Estimates from N.C. State Demographics to determine the percentage of residents.

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The North Carolina Association of County Commissioners (NCACC) is the official voice of all 100 counties on issues being considered by the General Assembly, Congress and federal and state agencies. The Association provides expertise to counties in the areas of lobbying, fiscal and legal research, communications, intergovernmental relations, information technology, field visits and risk management services.