Halifax gains voter approval for sales tax

Halifax County on Feb. 1 became the 18th in the state to win voter approval to levy the additional quarter-cent sales tax, an option that was granted to counties by the General Assembly as part of the Medicaid swap of 2007.

More than 65 percent of voters who turned out for the referendum voted in its favor.

Halifax joins Alexander, Catawba, Cumberland, Duplin, Haywood, Hertford, Lee, Martin, New Hanover, Onslow, Pitt, Randolph, Robeson, Rowan, Sampson, Surry and Wilkes counties in having the referendum pass.

The earliest the county can begin implementing the tax is July 1. Board of Commissioners Chair James Pierce told The Daily Herald of Roanoke Rapids that commissioners will work further into the 2011-12 budget before making a final decision on whether to implement the additional sales tax, which could generate almost $1 million annually in additional revenue.

Among efforts to reduce expenditures during the 2010-11 budget cycle, the county implemented hiring and travel freezes, delayed capital outlay projects, reduced staffing, reduced appropriations to schools and used 4 percent of its fund balance to manage a budget shortfall.

Meanwhile, Buncombe County commissioners voted Jan. 18 to place the quarter-cent referendum on the Nov. 8 ballot. The proceeds would be used to pay for improvements at Asheville-Buncombe Technical Community College.

A-B Tech officials say they need $129 million to build and improve facilities; the tax could bring in $6 million to $7 million annually.

In 2010, 23 counties ran the sales tax referendum, and seven were successful. Since November 2007, 77 referendums on the quarter-cent sales tax have been held in 53 counties. Of those 77, 18 were approved.

For results of county referendums on the quarter-cent sales tax, visit www.ncacc.org/revenueoptions.html.