Sales tax redistribution resurfaces in budget negotiations

Published September 1, 2015

by Jim Bradley, WSOC-TV, September 1, 2015.

A controversial plan to send some of the sales taxes paid in Charlotte to poorer counties appeared dead when it was dropped from the North Carolina budget several weeks ago.

Now it is being brought back into discussions. The idea of changing the formula for sales tax distribution has been almost universally blasted by local leaders but Rep. Bill Brawley, (R) Mecklenburg, who has a key role in state budget negotiations, said it's back.

"Oh, it's alive," Brawley said, "The senate has attached it to everything the NC House wanted and said it's an absolute condition."

Brawley said Sen. Harry Brown, the architect of the redistribution idea, is holding other legislative issues hostage by refusing to support them unless his plan is also approved.

"They're seeing if we'll blink. It's not going to work," Brawley said.

The possibility that the redistribution idea will be approved is a concern to city leaders who said it would cost local government tens of millions of dollars.

"It's very disturbing to know that it may come back and that we haven't gotten it resolved," city councilman Michael Barnes said.

The potential resurrection of the sales tax distribution issue comes as leaders in the North Carolina House and Senate continue to work to find agreement on a new state budget.

No consensus has been built for a new state economic incentives package or tax credits for historic properties in small towns even though Gov. Pat McCrory has pushed for both.

McCrory avoided reporters at a noon event Monday in uptown Charlotte and refused to answer questions about the budget impasse.

Sen. Jeff Tarte, who was also at the event, said budget talks continue to be bruising, especially regarding any effort to change the existing sales tax distribution formula.

"There are members that are working feverishly to see that bill die," Tarte said.

http://www.wsoctv.com/news/news/local/nc-sales-tax-redistribution-plan-resurfaces-budget/nnT52/