Wilkes County continues sales tax referendum trend

• Revenue option referendum results (since November 2007)

Counties that have run referendums on the quarter-cent sales tax in 2010 remain undefeated.

Wilkes County became the latest to join the list of 16 counties that have successfully asked voters for authorization to levy the additional sales tax, an option that was granted to counties by the General Assembly as part of the Medicaid swap of 2007. More than 54 percent of Wilkes County voters approved of the measure during a referendum on June 22, the date of the second primary.

Board of Commissioners Chairman Zach Henderson told the Wilkes Journal Patriot that he expects the roughly $1.15 million in annual revenue from the quarter-cent sales tax to go toward the county's fund balance, which dropped to 5 percent at the end of the 2008-09 fiscal year.

Wilkes County voters had previously rejected the referendum in May 2008. Voters in four of the other five counties that have won approval to levy the sales tax in 2010 also previously rejected referendums for the tax in their counties.

Duplin, New Hanover and Onslow counties won approval for the tax May 4. On March 2, voters in Hertford and Randolph counties provided commissioners authority to levy the tax.

Other counties that have successfully run a referendum and levied the tax are Lee and Rowan (November 2009); Cumberland and Haywood (May 2008); Alexander (January 2008); and Catawba, Martin, Pitt, Sampson and Surry (November 2007).

At least eight other counties are holding referendums on the sales tax this year.

Robeson County, which failed in its first attempt to win voter approval for the tax in November 2007, will try again on Aug. 3. County officials began to ramp up their educational efforts on the sales tax in June by placing educational brochures in various county venues. According to County Manager Ken Windley, the tax would generate roughly $2 million in revenues, which would be used for courthouse and jail expansion and a recycling program, as well as a 2-cent property tax decrease.

Watauga County will for the first time poll voters on the tax on Aug. 31. Commissioners have pledged the $1.3 million in estimated additional revenue to fund recreational improvements and a community center.

Commissioners in Alamance, Bladen, Cherokee, Columbus, Montgomery and Orange counties have all voted to place the referendum before voters on Nov. 2.

The Orange County Board of Commissioners, which voted June 15 to place the referendum on the November ballot, discussed using the estimated $2.3 million in additional annual revenue for school debt service, economic development projects and libraries.

"I think it's pretty clear we need other revenue options and on the scale of things, it's less painful than the one we tried most recently, which was the real estate transfer tax," Commissioner Barry Jacobs told The Herald-Sun of Durham.

Columbus County commissioners said, if approved, the additional annual sales tax revenues of $1 million would be used for public education needs and capital projects, such as courthouse renovations or replacement. The county unsuccessfully held sales tax referendums in November 2008 and November 2007.

Bladen County commissioners said they would use the revenues to fund schools. Montgomery County commissioners said they would use the roughly $250,000 in additional revenues to replenish a depleted general fund.

Commissioners in Gaston, Graham, Lenoir and Mecklenburg counties have discussed holding a future referendum.

The Association has conducted a number of seminars over the past three years on strategies for a successful revenue option referendum campaign. The NCACC Tax and Finance Steering Committee, which heard a panel presentation on successful strategies during its February 2010 meeting, will sponsor an Annual Conference workshop on the topic on Friday, Aug. 27.

NCACC District 12 director survives run-off

Lincoln County Commissioner Jim Klein, a member of the NCACC Board of Directors as District 12 director, advanced to the November general election after surviving a June 22 run-off.

Two other incumbent commissioners weren't so lucky. In New Hanover County, Commissioner Bill Caster lost his run-off. In Rowan County, Commissioner Tina Hall was beaten out by fellow board member Chad Mitchell.

Thirty-six incumbent county commissioners were defeated in either the May 4 primary elections or the June 22 run-off elections, meaning that – combined with the 53 sitting commissioners who did not seek re-election – at least 89 new commissioners will take office in December.