March 6, 2012. Madeleine Henley of the N.C. League of Municipalities spoke before those gathered at the Watauga Intergovernmental Retreat on the campus of ASU on Monday, March 5, about the state’s economy, which she called “stable.” Her presentation focused on revenues from sales tax.
In speaking about the reduction in taxable sales since the recession began, she said, “We are nowhere near getting out of this, but it looks like maybe we have bottomed out and we are heading back.”
In fiscal year 2008-09, North Carolina had a reduction of taxable sales — in comparison to pre-recession levels of fiscal year 2007-08 — of more than $7 billion dollars split between construction related and other expenses (excluding food and home). In fiscal year 2009-10, North Carolina bottomed out with a reduction of taxable sales of about $13 billion — also split between construction related and other expenses. For fiscal year 2010-11 taxable sales figures in N.C., Henley alluded to our economy “heading back” with figures improving $3 billion from the previous year to a reduction of more than $10 billion in taxable sales from fiscal year 2007-08. (See Graph Below)
That improvement comes solely from “all other” expenses that exclude food for home. The taxable sales from construction related improvements is nearly the same as last year at more than $6 billion in a reduction of taxable sales compared to fiscal year 2007-08.
“While things are getting better, they are really not very great yet,”Henley said, adding that those in attendance didn’t need to be told the obvious.
Attendees included officials from ASU and towns of Blowing Rock, Seven Devils, Beech Mountain, Boone and Watauga County.
NCLM advocates for municipalities at the state and federal level, provides services and information to municipal officials and is a nonpartisan association.
See Graph Below on Reduction of Taxable Sales from Fiscal Year 2007-08