News & Observer | newsobserver.com | Durham meal tax will be put to vote

Published: Jul 18, 2008 12:30 AM
Modified: Jul 18, 2008 02:21 AM

Durham meal tax will be put to vote

1% restaurant levy to be on Nov. ballot

 

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After nearly dying several times and surviving a series of razor-thin votes, a bill allowing Durham County voters to decide on a 1 percent restaurant tax passed the General Assembly on Thursday.

Now comes the really hard part: selling the tax to voters already feeling squeezed at the gas pump and grocery store. The issue will be on the ballot in November.

Durham officials for years have sought the tax, similar to one that Wake County has had since 1993, to pay for cultural amenities. They plan to use the revenue generated to pay for projects such as repairing the Durham Civic Center and building a Minor League Baseball museum, among others.

The Durham Convention and Visitors Bureau recently took a poll of Durham residents and found that 47 percent of voters support the tax, 37 percent oppose it, with 16 percent undecided.

Reyn Bowman, the group's president and CEO, said voters need to be convinced that the projects to be funded are worthwhile and that the tax won't pinch them financially.

It is estimated that the tax, if approved, would raise $5 million a year. Bowman said it's not yet clear what projects would receive funding, though the city and county have identified an unmet need of about $90 million worth of capital projects.

Ellen Reckhow, chairwoman of the Durham County Board of Commissioners, said a steering committee likely would be appointed in August to formulate a campaign for the tax.

She noted that for the city and county to raise $5 million together, each body would have to increase their property tax rates by a penny.

"There's an advantage to diversifying our revenue stream through a source where we get a lot of help from people who don't live in our community," she said.

But Jeffrey Elliot, chairman of the political science department at NCCU, says the fact that the tax would fund projects seen as nice-to-haves lessens its prospects for voter approval.

"Voters generally oppose tax increases unless they see immediate benefits, such as aid to education or other issues they feel would have a positive impact on their lives," Elliot said.

"At a time when people are paying more and more for gas and groceries and other essentials, even if the cost of the tax is minor, I think people would say there are infinitely more important issues."

Sen. Floyd McKissick, a Democrat from Durham who labored to corral enough votes to get the bill passed, said Wake County has made good use of its meals tax. Among other projects, it helped finance the RBC Center.

"A case can be made for worthy projects that will benefit the community substantially," McKissick said.

matt.dees@newsobserver.com or (919) 956-2433
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