Orange County Manager Frank Clifton’s proposed budget keeps the property tax rate as is. Good. For two decades, county residents endured rate hikes year after year to, in part, fund programs and services that were outside the core services appropriately delivered by local government. Last year the board finally agreed to lower the tax rate, but the tax bill for many property owners increased anyway.
Still, Clifton wants commissioners to put a 1/4 cent sales tax referendum on the November ballot. No decision yet from commissioners, but there is little doubt they’ll give this the thumbs-up and sell it as an alternative to property tax hikes.
This argument was successful on May 4 in three counties — Onslow, Duplin, and New Hanover.
But take special note of this very inconvenient truth. As John Hood points out in our sister blog, Squall Lines, New Hanover County voters have received an unpleasant surprise in the wake of their “yes” vote for a sales tax hike — yep, a likely hike in the property tax as well.
Another troubling reality is that many local officials have successfully moved the debate from no tax hike versus tax hike, to property tax hike versus sales tax hike. Very slick politics, since data shows that, in most counties and cities in North Carolina, revenue growth over a five-year period has outpaced the rate of inflation and population. JLF’s Michael Sanera explains in this brief interview.
