On Nov. 8, Orange County voters will decide whether to hike the sales tax by a quarter-cent. The first attempt was defeated by voters. In a new report, John Locke Foundation Local Government Analyst Michael Sanera critiques the substance of the county commissioners’ plan.

Proceeds from the sales tax hike would be split between economic development infrastructure projects and school facility and technology projects, according to county commissioners’ official resolution.

“There’s nothing legally binding about this resolution,” Sanera said. “Commissioners have talked about setting up a separate account for these tax funds, but it’s unclear how the money would be distinguished from Orange County’s general fund. It would be available for spending on any legal purpose. Plus the current group of county commissioners cannot bind any future board with spending promises.”

Even if commissioners could be trusted to keep their promises, voters have good reasons to question both stated goals for new tax proceeds, Sanera said. 

“It’s unlikely that spending half of this new money — $1.25 million — will do anything to improve Orange County’s economy,” he said. “The county, Chapel Hill, and Carrboro have a long record of anti-business policies. Land-use restrictions, lengthy development review processes, farmland and historic preservation, and other policies lead to inevitable negative economic consequences. New spending on infrastructure won’t erase that problem.”