scotland county sales and use tax referendum information about the 0.25% optional sales tax

Scotland County Sales and Use Tax Referendum

Information about the 0.25% Optional Sales Tax

Why Sales and Use Tax Referendum?

• The 2007 General Assembly recognized that counties need alternative means of paying for public facilities and infrastructure.

• Counties need revenue sources other than property taxes.

• Everyone pays it.

What question will be placed on the ballot?

• "[ ] For [ ] Against Local sales and use tax at the rate of one-quarter percent (0.25%) in addition to all other State and local sales and use taxes."

When will the sales tax referendum be conducted?

• Tuesday, November 6, 2012

Are there restrictions on the use of the new sales tax revenues?

• State law does not restrict the use of the 0.25% sales tax

Can a county stipulate uses of these monies on the ballot as a part of the

referendum?

• No• The referendum question is set by statute.

How much will a 0.25% sales tax raise?

$601,376

North Carolina Association of County CommissionersEstimated Article 46 1/4 Cent Sales Tax based on NC-DoR Article 39 Distributables

How will the money be used?

• Capital– Major repairs and renovations to buildings– New construction– Life exceeding 10 years

• Economic Development

How much would it cost?

• $4.00 = $0.01

How much would it cost?

• $100.00 • $0.25

How much would it cost?

• $899.00• $2.25

When could it be effective?

• April 1, 2013

• Effective on the first day of any calendar quarter as long as the County gives the Secretary of Revenue at least 60 days advance notice.

Who pays the additional sales tax?

• Everyone who shops in Scotland County

Would the sales tax apply to everything we purchase?

• No. • The sales tax would not apply to – most non-prepared food items – prescription drugs – gas – vehicle purchases – utilities payments

Contact County Manager Kevin Patterson910-277-2406

kpatterson@scotlandcounty.orgwith questions or comments