News & Observer | newsobserver.com | Local & State

Published: Sep 20, 2007 12:00 AM
Modified: Sep 20, 2007 05:08 AM

Transfer tax fight shifts to counties

Growth and Medicaid expenses lead 16 counties to put a land transfer tax on their ballots this fall

Story Tools

TAX OPTIONS

The state legislature gave counties the authority to ask voters for permission to levy a 0.4 percent land transfer tax or a quarter-cent sales tax. Counties may put both on the ballot, but if both pass may levy only one.

Commissioners have the option to levy either tax that passes, but they're not bound to.

If the measure fails, counties can ask voters again as often as they want.

If another board is elected, it can repeal the land transfer tax without voter permission. A special election would be required to get rid of the sales tax.

TRIANGLE COUNTIES

Chatham and Johnston counties have put the land transfer tax on their November ballots. Johnston also is asking voters to approve a sales tax.

Wake and Durham counties chose not to put the measures on their ballots.

Orange County voted Wednesday night to have one or both new tax options on the May ballot.

Advertisements


< Previous page

Voter education

The county has spent $3,500 on a consultant and shiny brochures that they say will educate the community about the tax. Education with public funds is allowed, Meyer said, as long as it doesn't say how citizens should vote.

The brochure has "The Voter's Choice" on the front with a picture of the Chatham courthouse. Inside are pictures of school children with backpacks, and lists of school needs.

"Additional revenue from the land transfer tax, if approved, could be used to help the county increase its borrowing capacity ... up to $43 million in additional funds for schools and other needs," it reads.

The county will pay as much as $10,000 for the consultant, according to the county manager.

Johnston County voters will have their say on both a land transfer tax and a quarter-cent sales tax increase. The county would earn more from the land tax, raising about $4.5 million per year.

Commissioner Allen Mims has said if voters back a land transfer tax, he would favor devoting it to school construction. The county also could use more money for debt service, road improvements or a break on property taxes.

Wake County has not put a tax measure on the ballot. County Manager David Cooke and several commissioners have expressed concern that asking voters to approve a new land transfer tax or sales tax on the same ballot as $187 million in bond issues would be too much.

Orange County commissioners declined to put a land transfer tax on the November ballot, but decided Wednesday night to put some local revenue measure on the May primary ballot.

Fearful that the prospect of a new tax would jeopardize three bond proposals, Durham County commissioners, too, put off a fall referendum on the taxes.


< Previous page

No comments have been posted for this story. Log in to be the first to comment.


The News & Observer is pleased to be able to offer its users the opportunity to make comments and hold conversations online. However, the interactive nature of the internet makes it impracticable for our staff to monitor each and every posting.

Since The News & Observer does not control user submitted statements, we cannot promise that readers will not occasionally find offensive or inaccurate comments posted on our website. In addition, we remind anyone interested in making an online comment that responsibility for statements posted lies with the person submitting the comment, not The News and Observer.

If you find a comment offensive, clicking on the exclamation icon will flag the comment for review by the administrators, we are counting on the good judgment of all our readers to help us.

Print Ads View all ads from past 7 days »

Hosting Partners of
newsobserver.com

Member of the
Real Cities Network

A subsidiary of The McClatchy Company