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WHO PUT THIS ISSUE ON THE BALLOT?
The NC General Assembly granted county
boards of commissioners the authority to
levy, su...
WHEN WILL THE SALES TAX REFERENDUM BE
CONDUCTED?
Tuesday, May 6, 2014.
WHEN WOULD IT BE EFFECTIVE?
Effective on the first day of any calendar
quarter as long as the County gives the
Secretary o...
WHAT WILL THESE FUNDS BE USED FOR?
The Board of Commissioners resolved in a
November 12, 2013 resolution to designate
fund...
WILL THE AREAS IDENTIFIED FOR FUNDING BE
PERMANENT OR CHANGE?
The one-quarter cent sales and use tax would
provide suffici...
Class changes to mobile
classrooms are uncovered at
both North Davidson and
Ledford High Schools
Older narrow crowded
hall...
HOW MUCH MONEY WILL BE RAISED THROUGH
THIS TAX?
The North Carolina County Commissioners
Association estimates based on cur...
HOW DOES THIS COMPARE TO PROPERTY
TAXES?
ONE PENNY IN DAVIDSON COUNTY PROPERTY TAX
RAISES AROUND $1,252,129.
ONE-FOURTH OF...
ARE THERE ITEMS EXEMPT FROM THE SALES
TAX?
There are a multitude of items that are exempt
from the sales tax including mos...
HAS THE SALES TAX REFERENDUM BEEN ON
BALLOTS IN OTHER COUNTIES?
Yes, since the legislature granted counties
authority to s...
WHAT IS THE CURRENT TAX RATE FOR
DAVIDSON AND ADJACENT COUNTIES?
The current sales tax rate for Davidson County is 6.75% o...
IF THE SALES TAX PASSES DOES IT MEAN
PROPERTY TAXES WILL NOT BE INCREASED?
The sales tax lessens the pressure on
property ...
HOW MUCH WILL THE SALES AND USE TAX
COST?
The Sales and Use tax will be 1 cent for every
4 dollar purchase.
HOW IS A SALES TAX DIFFERENT FROM
PROPERTY TAX?
Property taxes are assessed based on how much
property you own. Not all re...
WHAT IS THE VOTING PROCEDURE?
Yes. Legislation specifies how the question must be presented on
the ballot:
Ballot Question...
IF I VOTE A STRAIGHT TICKET WILL THE SALES
TAX BE COVERED?
No, all voters must mark either “For” or
“Against” if they want...
WILL THE TAX BE PERMANENT OR WILL IT HAVE
A SUNSET PROVISION?
There is no sunset on the implementation of
the tax. It coul...
Davidson County Sales Tax Referendum Presentation
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Davidson County Sales Tax Referendum Presentation

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Presentation on sales tax referendum in Davidson County, presented by Max Walser during Winter 2014 NCLGBA Conference on December 11, 2014.

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Davidson County Sales Tax Referendum Presentation

  1. 1. WHO PUT THIS ISSUE ON THE BALLOT? The NC General Assembly granted county boards of commissioners the authority to levy, subject to voter approval, an additional one-quarter cent (1/4¢) county sales and use tax. On November 12, 2013, the Board approved a resolution calling for a May 6, 2014 Special Advisory Referendum concerning the Levy of a One-Quarter Cent (1/4¢) County additional Sales and Use Tax.
  2. 2. WHEN WILL THE SALES TAX REFERENDUM BE CONDUCTED? Tuesday, May 6, 2014.
  3. 3. WHEN WOULD IT BE EFFECTIVE? Effective on the first day of any calendar quarter as long as the County gives the Secretary of Revenue at least 60 days advance notice. In Davidson County’s case the earliest would be September 1, 2014.
  4. 4. WHAT WILL THESE FUNDS BE USED FOR? The Board of Commissioners resolved in a November 12, 2013 resolution to designate funds raised through the Article 46 one- quarter cent (1/4¢) sales and use tax for a new High School at the Oak Grove School site. Hallways are very crowded during regular classroom changes at North Davidson and Ledford High Schools Students wait to enter the main building in an uncovered area coming from the “Math Pod” at North Davidson Sr .High
  5. 5. WILL THE AREAS IDENTIFIED FOR FUNDING BE PERMANENT OR CHANGE? The one-quarter cent sales and use tax would provide sufficient revenue for the anticipated debt service for such school construction and would enable the County to continue necessary repairs and improvements to other school facilities. One of the thirteen “Cart Teachers” at Ledford navigates a crowded hallway Most of the Media Center at Ledford has been converted to classroom space North Davidson students have class in the hallway due to lack of classroom space
  6. 6. Class changes to mobile classrooms are uncovered at both North Davidson and Ledford High Schools Older narrow crowded hallways and 5 crowded lunches are issues that plague North Davidson
  7. 7. HOW MUCH MONEY WILL BE RAISED THROUGH THIS TAX? The North Carolina County Commissioners Association estimates based on current sales tax figures, that the one-fourth of a penny sales and use tax would generate approximately $2,300,000 annually.
  8. 8. HOW DOES THIS COMPARE TO PROPERTY TAXES? ONE PENNY IN DAVIDSON COUNTY PROPERTY TAX RAISES AROUND $1,252,129. ONE-FOURTH OF A PENNY IN SALES TAX IS PROJECTED TO RAISE AROUND $2,300,000.
  9. 9. ARE THERE ITEMS EXEMPT FROM THE SALES TAX? There are a multitude of items that are exempt from the sales tax including most prescription medication, gasoline, certain agricultural supplies and motor vehicles. For a full listing, see North Carolina General Statute 105-164.13. Food (groceries) are also exempt per General Statute 105-164.13B.
  10. 10. HAS THE SALES TAX REFERENDUM BEEN ON BALLOTS IN OTHER COUNTIES? Yes, since the legislature granted counties authority to seek voter approval, many counties have placed the referendum on a local ballot.
  11. 11. WHAT IS THE CURRENT TAX RATE FOR DAVIDSON AND ADJACENT COUNTIES? The current sales tax rate for Davidson County is 6.75% or six and three quarters of a cent for a $1.00 purchase. The North Carolina Department of Revenue has a tax rate list of all North Carolina counties. Sales Tax Property Tax State Local Randolph 4.75% 2.25% 58.60 cents Rowan 4.75% 2.25% 62.25 cents Forsyth 4.75% 2.00% 67.40 cents Guilford 4.75% 2.00% 78.04 cents Davie 4.75% 2.00% 62.00 cents Montgomery 4.75% 2.25% 57.00 cents Stanley 4.75% 2.00% 67.00 cents Davidson 4.75% 2.00% (currently) 54.00 cents
  12. 12. IF THE SALES TAX PASSES DOES IT MEAN PROPERTY TAXES WILL NOT BE INCREASED? The sales tax lessens the pressure on property tax but it will be up to the Board of Commissioners to determine the property tax rate during their annual budget discussions. Currently property tax is the primary source of funding for Davidson County Government services.
  13. 13. HOW MUCH WILL THE SALES AND USE TAX COST? The Sales and Use tax will be 1 cent for every 4 dollar purchase.
  14. 14. HOW IS A SALES TAX DIFFERENT FROM PROPERTY TAX? Property taxes are assessed based on how much property you own. Not all residents own property. Businesses pay property taxes. Keeping property taxes low can help encourage economic development. Sales taxes are generated from monetary transactions. Tourists and visitors to Davidson County would also help support county services through a sales tax. The 2012 Economic Impact of Travel on North Carolina Counties Prepared for the North Carolina Division of Tourism, Film and Sports Development by the U.S. Travel Association stated that this had a $4.3 million local sales tax effect on Davidson County.
  15. 15. WHAT IS THE VOTING PROCEDURE? Yes. Legislation specifies how the question must be presented on the ballot: Ballot Question. – The form of the question to be presented on a ballot for a special election concerning the levy of the tax authorized by this Article shall be:'[ ] FOR [ ] AGAINST Local sales and use tax at the rate of one-quarter percent (0.25%) in addition to all other State and local sales and use taxes.' Note: The sale tax amount is set at a rate of .25%.
  16. 16. IF I VOTE A STRAIGHT TICKET WILL THE SALES TAX BE COVERED? No, all voters must mark either “For” or “Against” if they want their vote to count on the Sales and Use Tax.
  17. 17. WILL THE TAX BE PERMANENT OR WILL IT HAVE A SUNSET PROVISION? There is no sunset on the implementation of the tax. It could be repealed in future years by a majority vote of the Board of Commissioners.

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