Who put this issue on the ballot?
The NC General Assembly granted county boards of commissioners the authority to, subject to voter approval, an additional one-quarter cent (1/4¢) county sales and use tax and to issue bonds. On August 20, 2012, the Board approved a resolution calling for a November 6, 2012 Referendum concerning the Levy of a One-Quarter Cent (1/4¢) County additional Sales and Use Tax and the issuance of $15,000,000 in bonds for the purpose of expansion and improvement of facilities at Alamance Community College.
What will these funds from the 1/4 Cent Sales and Use tax be used for?
The resolution passed by the Alamance County Commissioners on August 6, 2012 states that the funds from the 1/4 cent sales tax are to be used in the following manner:or
1. As Debt Service for the construction of the Alamance Community College Applied Technology Center through the issuance of $15,000,000 in bonds.
2. Economic Development expenditures through the utilization of the remaining funds to support activities within Alamance County relating to economic development opportunities, including but not limited to potential land purchases and infrastructure extensions.
How much will a 1/4 cent sales and use tax increase cost me?
The answer is dependent on how much you spend and where. While there are exceptions, the 1/4 cent sale tax will typically cost consumers an additional 25 cents for every $100.00 they spend. Another way to put it is that for every $4.00 you spend, the 1/4 cent sales and use tax would add one penny to your overall cost.
For instance, if you buy a new pair of shoes for $69.95 in Alamance County, the current sales tax adds $4.72 to your total cost. Under the proposed increase, the sales tax would increase to $4.90, an increase of 18 cents.
How much money will be raised through this tax?
The Alamance County Finance Department estimates, based on current sales tax figures, that the one-fourth of a penny sales and use tax would generate approximately $3,800,000 annually.
How does this compare to property taxes?
One penny in Alamance County property tax raises around $1,200,000.
One-fourth of a penny in Sales Tax is projected to raise around $3,800,000.
Are there items exempt from the sales tax?
There are a multitude of items that are exempt from the sales tax including prescription medication, gasoline, certain agricultural supplies and motor vehicles. For a full listing, see North Carolina General Statute 105-164.13.
Food (groceries) are also exempt per North Carolina General Statute 105-164.13B.
Has the sales tax referendum been on ballots in other counties?
Yes, since the legislature granted counties authority to seek voter approval, many counties have placed the referendum on a local ballot.
What is the current tax rate for Alamance and adjacent counties?
The current sales tax rate for Alamance County is 6.75% or six and three quarters of a cent for a $1.00 purchase. The North Carolina Department of Revenue has a tax rate list of all North Carolina counties.
If the sales tax passes does it mean property taxes will not be increased?
It will be up to the Board of Commissioners to determine the property tax rate during their annual budget discussions. Currently property tax is the primary source of funding for Alamance County Government services.
How is a sales tax different from property tax?
Property taxes are assessed based on how much property you own. Not all residents own property. Businesses pay property taxes. Keeping property taxes low can help encourage economic development. Sales taxes are generated from monetary transactions. Tourists and visitors to Alamance County would also help support county services through a sales tax.
What is the voting procedure?
Details on the voting process can be found on the Board of Elections website.
If I vote a straight ticket will the sales tax be covered?
No, all voters must mark either “For” or “Against” if they want their vote to count on the Sales and Use Tax.
Will the tax be permanent or will it have a sunset provision?
There is no sunset on the implementation of the tax. It could be repealed in future years by a majority vote of the Board of Commissioners.