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County Concern with Proposed Sales Tax Distribution

You may have recently read or heard about a North Carolina General Assembly proposal to redirect local sales taxes that you pay in and to New Hanover County to other county governments across the state. The goal of the legislation is to help those county governments that are smaller and more rural raise more revenue for their public investments and priorities. On the face many may believe this is a fair and equitable tax policy. However, the consequence to all of us is a redirection of about $13 million from New Hanover County to other counties in North Carolina. When you factor in the lost revenue to Wilmington and the beach towns the cumulative effect is even greater. What happens if the county loses $13 million and the impact is year-over-year? Most likely an increase in property taxes. Why? Even though the legislation proposes to redirect local sales taxes, it does not stand down any of the mandated service obligations such as administering the court system, funding the detention center, providing public health, or maintaining a safety net for those less fortunate.

As a resident, as a business owner, as a property owner in New Hanover County, I ask that you follow this bill as it moves through and is reshaped by the General Assembly. You will see it or hear it referenced as Senate Bill 369 or the Sales Tax Fairness Act. We’ve already seen most of the local media outlets report on the proposed legislation.

Attached to this blog you can also find a letter sent by the New Hanover County chairman of the board to the entire New Hanover County legislative delegation outlining county concerns with SB 369..

Thank you in advance for keeping yourself attuned to what may happen regarding your locally paid sales taxes.

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