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Here we go again: heavy equipment tax

In March, commissioners talked briefly about a heavy equipment rental tax that would raise about $100,000 for the county.

The discussion was tabled. (Click that link and go to item C1 to see video from that conversation.)

But commissioner Billy Yow and vice chairman Steve Arnold opposed the measure. Arnold is a former developer, and Yow is a well digger, so it's conceivable that both would have an interest in keeping down the cost of renting heavy equipment beyond their being Republicans.

Commissioner Kirk Perkins, a Democrat who is also in real estate and development, said that he would support the measure.

Democratic commissioner Carolyn Coleman moved to table the discussion until a later time so that they could see how the county's sales tax collection worked out and see if the revenue is needed. The 2009-10 budget predicted sales tax revenue would drop by $13.3 million over the previous year.

Problem is, that's a moving target because the state has been inconsistent with sales tax returns to municipalities this year. The county's budget director, Mike Halford, has told us that that figure is difficult to pin down because of that issue with the state.

According to the Guilford County tax department, the new tax would replace revenue that was lost when the state excluded heavy equipment items from property taxation.

What's the root of the issue here? Looks like it's the attempt to replace lost revenue vs. a tax cut that, some would argue, encourages development. Bulldozers grade the land that new buildings go on, and that equipment is often rented by contractors.

Those are things that we're also trying to look into, ourselves. We expect to have more on this issue later.