Sales-tax referendum set for Aug. 31
by Scott Nicholson
With a referendum on a local-option sales tax headed for a public referendum in 10 weeks, the Watauga County administration has released a "fact sheet" on the tax.
The quarter-cent local sales tax was sent to a referendum by the Watauga County Board of Commissioners, who adopted a resolution ordering the referendum. The quarter-cent sales tax is projected to raise $1.9 million in revenues per year and be used to construct an indoor recreation center and an Eastern Community Center.
The N.C. State Depart of Revenue requires a 90-day notice to implement the tax, so in order to have the tax take effect on Jan. 1, 2011, it would have to pass a referendum by Aug. 31.
That's the date set by the commissioners for the referendum, with early voting to be held in the Board of Elections office from Aug. 12 to Aug. 28.
In the fact sheet, the commissioners noted the quarter-cent amounted to 25 cents per $100 in purchases, with groceries exempt from the sales tax.
The commissioners also described the use for the tax revenues as designated for the recreation center, which would have an aquatics center and a 25-meter competition pool, a water play area and a tot pool. The center is currently proposed for the former high school site in Boone, with a cost of up to $12 million.
The community center for the eastern portion of the county would provide space for multipurpose meetings, a kitchen and other community programs. No site has been selected for the center.
Revenues would also develop a comprehensive plan to upgrade facilities at existing county parks, elementary schools and other public-recreation lands, as outlined in the recently completed Parks and Recreation Master Plan.
A 2007 General Assembly act gave counties the authority to adopt either a land-transfer tax of up to 0.4 percent, paid on real-estate transactions, or an additional quarter-cent sales tax. The act stipulated that such tax increases could only be approved through a referendum. The referendum is non-binding, meaning the commissioners aren't obligated to approve the measure if it passes the referendum.
While governments can spend money to educate the public about issues surrounding a local-option tax referendum, counties can't spend money asking people to vote for a local tax, according to the North Carolina Association of County Commissioners.
The quarter-cent local sales tax was sent to a referendum by the Watauga County Board of Commissioners, who adopted a resolution ordering the referendum. The quarter-cent sales tax is projected to raise $1.9 million in revenues per year and be used to construct an indoor recreation center and an Eastern Community Center.
The N.C. State Depart of Revenue requires a 90-day notice to implement the tax, so in order to have the tax take effect on Jan. 1, 2011, it would have to pass a referendum by Aug. 31.
That's the date set by the commissioners for the referendum, with early voting to be held in the Board of Elections office from Aug. 12 to Aug. 28.
In the fact sheet, the commissioners noted the quarter-cent amounted to 25 cents per $100 in purchases, with groceries exempt from the sales tax.
The commissioners also described the use for the tax revenues as designated for the recreation center, which would have an aquatics center and a 25-meter competition pool, a water play area and a tot pool. The center is currently proposed for the former high school site in Boone, with a cost of up to $12 million.
The community center for the eastern portion of the county would provide space for multipurpose meetings, a kitchen and other community programs. No site has been selected for the center.
Revenues would also develop a comprehensive plan to upgrade facilities at existing county parks, elementary schools and other public-recreation lands, as outlined in the recently completed Parks and Recreation Master Plan.
A 2007 General Assembly act gave counties the authority to adopt either a land-transfer tax of up to 0.4 percent, paid on real-estate transactions, or an additional quarter-cent sales tax. The act stipulated that such tax increases could only be approved through a referendum. The referendum is non-binding, meaning the commissioners aren't obligated to approve the measure if it passes the referendum.
While governments can spend money to educate the public about issues surrounding a local-option tax referendum, counties can't spend money asking people to vote for a local tax, according to the North Carolina Association of County Commissioners.