Chatham schools to get 85% if tax passes

$2 million more annually foreseen for school needs

The Chatham County Board of Commissioners voted unanimously Monday to devote 85 percent of revenue from a possible land transfer tax to schools.

The restriction would remain until at least the end of 2010, when a majority of the board will be up for re-election, county officials said. The county staff estimates that this action will provide about $2 million in additional money each year for school needs.

"There seems to have been some confusion about this issue. Some have said we are taking money away from the schools by reducing the impact fee," Vice Chairman George Lucier said in a release, explaining why he made the motion to restrict use of the land transfer tax.

"Commissioners had previously agreed in principle to using most of the tax for school needs, but today's vote makes it official and explicit," he said.

Commissioners voted last month to reduce the county's school impact fee from $2,900 to $1,900 if voters approve the land transfer tax Nov. 6. The 0.4 percent transfer tax is one of two options the state gave counties. The other is a quarter-cent sales tax. County officials say the transfer tax would raise more than three times the amount the additional sales tax would raise.

To educate voters about the land transfer tax, the county has scheduled a series of public information meetings. The next one is at 7 p.m. Thursday at Chatham Central High School Auditorium, 14950 N.C. 902 West in Bear Creek.

Other meetings are scheduled for 7 p.m. Oct. 11 at Liberty Chapel United Church of Christ, Old U.S. 1 in Moncure, and 7 p.m. Oct. 18 at the Eastern Chatham Senior Center, 365 N.C. 87 North in Pittsboro.

With the reduced school impact fee, the net gain in county revenues would be $2.5 million in 2008-09, which is the same as a 3.4-cent property tax rate increase. Of the $2.5 million net gain, $1.9 million would be restricted for schools.