GREENSBORO — With budget season behind them and debt payments looming, Guilford County commissioners are dusting off a perennial discussion: the possibility of a sales tax increase.
“I think we’re going to have to look at all options,” Chairman Melvin “Skip” Alston said. “Nothing can be off the table.”
He said residents realize what the county is facing and know something has to be done.
“We’re facing about a $40 million debt service next year plus the $9 million in operational expenses for the new county jail,” Alston said. “Our employees also haven’t had a cost-of-living increase in their salaries for the last two years. So in the next year we’re going to have to look at everything. A sales tax increase may be something we have to try.”
It’s been tried before. The state agreed to let counties put a quarter-cent sales tax on the ballot in 2007, and Guilford County put the option before the public the next year. But voters rejected it in the May and November elections in 2008.
Now that 15 of the state’s 100 counties have passed the increase, a number of commissioners say they would support trying again — under certain conditions.
“I wouldn’t have a bit of problem voting to put a sales tax on the ballot for people to vote on,” said Commissioner Billy Yow. “Provided we could get an agreement from the state that if we say we’re going to use this money to alleviate our debt, they don’t wind up taking it and putting us right back in the position we’re in now.”
Yow said he would also like the commissioners to agree that if they raise the sales tax, they’ll avoid raising property taxes — and to tell residents how long the sales tax move will keep higher property taxes at bay.
Alston said he’s not sure that would be possible.
“If we did a quarter-cent sales tax increase it would generate us about $15 million,” he said. “That wouldn’t be enough to stave off a property tax increase, but that is the last resort. I’d want it to be a small increase, if it happened — two or three cents.”
Alston said he understands no one wants a tax increase, property or sales. But when voters approved more than $500 million in bonds in 2008, they made some sort of tax increase inevitable, he said.
He said he and other commissioners wanted people to have a chance to regroup when the economy became worse than anyone had anticipated.
Commissioners Kirk Perkins and John Parks have said they would support putting an increase before voters.
This week, Commissioner Carolyn Coleman, who has opposed an increase, said she’s willing to consider it.
“I do think that a sales tax increase can be regressive, that it can hurt the poor and the elderly,” she said.
“But the sentiment I’ve heard from people is they would prefer a sales tax increase over property tax. Many people who have property but are on a fixed income would be more affected by having to pay a big lump sum.”
Contact Joe Killian at 373-7023 or joe.killian@news-record.com
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