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Sales tax DOA at General Assembly

Wednesday, May 21, 2008
(Updated Friday, June 6 - 3:28 pm)

The Guilford County legislative delegation met today. Even if the commissioners pass a resolution asking for the ability to put a one-cent sales tax on the November ballot, the delegation will not file such a bill.

Read more at our Inside Scoop blog.

From today's News & Record:

GREENSBORO — Weeks after a quarter-cent sales tax failed by a three-to-one vote in Guilford County, one commissioner wants a November referendum on a much larger sales tax proposal.

Does this make sense? Join the discussion at the Debatables blog.

Republican Commissioner Billy Yow wants a 1-cent sales tax referendum on the fall ballot.

The new vote would allow residents who recently passed $651.4 million in bonds for schools, a new jail and community college construction to choose on their own how to pay for them.

At this point, the bonds' passage means higher property tax rates, Yow said. The owner of a $200,000 home will pay $185 more per year on property tax bills in each of the next five years .

The penny sales tax he proposes could generate about $60 million annually , Yow said, and would cover current construction debt for Guilford County Schools and the recently passed school bonds, and allow for a lower property tax rate.

Though language in the new resolution reads that the penny sales tax is intended to pay down education construction debt, that is not binding. If voters approve the sales tax, the board can spend the revenue however it wishes.

Voters spoke two weeks ago when they denied a quarter-cent sales tax proposal that would have generated about $16 million annually.

"The quarter-cent sales tax was poorly presented," Yow said.

"Nobody was out there for the quarter-cent sales tax. It was not slated for any purpose; it was just slated to be another revenue source."

The board will vote Thursday on a resolution asking the General Assembly to support the referendum proposal, which is required for it to appear on the November ballot.

A higher sales tax would shift the county's debt burden more to shoppers than to property owners. A $100 item would cost $1 more if that larger sales tax passes.

Yow believes that he has enough support on the County Board of Commissioners to send the resolution to Raleigh. Then the proposal would need support from the local delegation.

Though the deadline to file a local bill is today , Yow sent a request to Raleigh for a placeholder so the county board could review the resolution.

Rep. Maggie Jeffus , a Greensboro Democrat and chairwoman of the Guilford County delegation, confirmed that she received the request.

She said the sales tax proposal would have to clear several procedural hurdles. All 10 members of Guilford County's legislative delegation must agree to allow the measure's introduction.

"I'm going to pursue it further and see where we get," Jeffus said.

Rep. Laura Wiley , a High Point Republican, expressed skepticism about the measure's chances.

"I'm going to have to talk to several folks because the voters just said no," Wiley said. "But perhaps some more education needs to be done.

"Everybody wants the goodies, but they may not have understood the sales tax was to pay for the bonds," Wiley said.

Sen. Phil Berger , a Rockingham Republican who represents parts of Guilford County, also said the prospects were iffy.

"I'd like to see the request before I make too much of a commitment, but I'll tell you I do believe the voters of Guilford County have spoken on the issue of whether their taxes ought to be raised — and spoken quite clearly," Berger said.

Staff Writer Mark Binker contributed to this report.

Contact Gerald Witt at 373-7008 or gerald.witt@news-record.com

Accompanying Photos

News & Record (News & Record)

Photo Caption: Billy Yow

What would it mean?

A penny added to the sales tax rate would add $1 to the purchase of a $100 item .

Whats next?
Several groups must approve the proposal before voters would see it, including Guilford County commissioners, the local delegation of state legislators and the General Assembly. If it gets through those groups, expect a heavy campaign for the tax in the run-up to Nov. 4, when voters can approve or deny the sales tax increase.

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