Andy Ellen: Good riddance to PLTs
In response to the May 21 editorial “Tax shift,” I would like to make several key points:
▪ The legislature actually reinstated the privilege license tax to give cities one more year to adjust to the change.
▪ While some cities like Lumberton, Durham and Raleigh are proposing property tax increases, it is for reasons other than PLTs (i.e. voter-approved parks bonds, pay raises, etc.).
▪ Mint Hill, Apex and others successfully operate their towns without a PLT; other towns should take note.
▪ “Local governments had the right to impose the surcharges on business based on the impact of the businesses.” Isn’t that what the property tax is for? How is charging a tax based on gross receipts equitable?
▪ Not onerous? Talk to the independent grocery store owner in Longview who paid over $5,000 in PLTs in addition to property tax!
▪ The PLT was never intended to be a revenue generator for cities. If cities are going to use town funds to pay for hotels, baseball stadiums, job incentives, bike-sharing programs, etc. (and they are), shouldn’t all residents pay for these amenities rather than businesses singled out by cities?
Andy Ellen
President, NC Retail Merchants Association
Raleigh
This story was originally published May 22, 2015 at 3:44 PM with the headline "Andy Ellen: Good riddance to PLTs."