Legislators urged to protect counties in tax reform negotiations | Eastern NC Now

For Immediate Release:

    With more than 40 counties having already adopted budgets for 2013-14, the NCACC is urging legislators to adopt a tax reform plan that does not negatively impact county revenues.

    "Any tax reform plan that results in decreased revenues to county governments is not really tax reform, but rather a shifting of funding responsibilities to county governments," said NCACC Executive Director David F. Thompson. "If tax reform results in lost revenues to counties, counties will be forced to either raise taxes or cut services."

    The Senate version of H998 repeals several county revenue streams, including the local sales tax on food and the refund on sales tax that counties pay. The plan also modifies the sales tax base slightly and phases in a cap on sales tax refunds from non-profits, which should generate more revenues for counties. When all elements of the plan are taken together, the NCACC estimates a net annual loss of more than $87 million to N.C. county governments, leaving counties to choose how to fund this state tax break - make cuts in services, re-levy the existing sales tax on food, or increase property taxes.

    The House plan moderately expands the sales tax base and leaves in place the county sales tax on food and the county refund for sales taxes paid. The NCACC estimates the House's adopted version would expand the county sales tax revenue base by more than $74 million when fully implemented in 2018.

    The NCACC has prepared a page on its web site with a county-by-county comparison of both versions of H998. You can access the information by visiting www.ncacc.org/taxreformimpacts. Attached is a sample copy of the county reports as well as a spreadsheet showing the data used to generate the county reports.

    For more information, contact Todd McGee, NCACC Public Relations Director, at (919) 715-7336 or todd.mcgee@ncacc.org.

    About the NCACC: The North Carolina Association of County Commissioners (NCACC) is the official voice of all 100 counties on issues being considered by the General Assembly, Congress and federal and state agencies. Founded in 1908, the Association provides expertise to counties in the areas of lobbying, fiscal and legal research, communications, intergovernmental relations, information technology, field visits and risk management services.

    Contact: Todd McGee,

     (919) 715-7336  •  todd.mcgee@ncacc.org