Sales tax increase to help rural counties
Published September 16, 2015
by Dedrick Russell, WBTV, September 15, 2015.
North Carolina's republican lawmakers are responding to a newly-created tax that will help counties survive. Legislators have approved the placement of a tax on goods and services they say will create $84.8 million to be distributed to counties that need extra support.
"We are 100 counties," Representative Craig Jeter said, "And we have unique areas. And the truth of the matter is we have to do whatever we can to make sure the entire state is prosperous."
Taxpayers tell WBTV they are not thrilled by the new expense. Lawmakers say that fixing a car and having a refrigerator delivered to your home will cost more. Jeter said the labor on those services will be taxed.
"That's not a good thing," taxpayer Steve Allen said. "That's just going to keep taking money out of our pockets."
If approved, here's the breakdown for some counties:
Harnett County would benefit the most, getting $3.8 million. Union County leaders would get $2.9 million more, Rowan County would see a $2.2 million increase and Gaston County would see $1.2 more in revenue.
The money would only be used for school, community colleges and to boost economic development.
Jeter says taxpayers should look at the whole budget and not focus on the new tax.
"You have to look at the fact we've cut the personal income tax," Jeter said. "A trigger for the corporate income tax is there which will allow corporations to create more jobs."
Some businesses say they are worried this new tax will force customers to cross the border and take their money across the border to South Carolina.
"That's what we do," Allen said. "Always check for better prices and better deals on everything, no matter what."
This new tax is a compromise. The Senate wanted to redistribute sales taxes. That plan called for taking about 80% of sales taxes from urban counties and dividing up amongst rural counties. Jeter believes this plan is better.
"You can't take from one and give to others and have success," Jeter said. "You have to create a system that will allow them to thrive based on their own actions, with as much assistance as we can provide without taking from the urban areas."
Lawmakers expect to approve the budget by September 18.
