By Kirk Ross / Carolina Public Press
New analysis shows 3 WNC counties and 32 towns would lose revenue under sales tax plan.
While the process for local and public bills goes on, North Carolina’s budget work also continues. Last week saw a handful of bills changing the state tax code, including a possible revival of the historic property tax credit.
One key tax bill, which would restructure the distribution formula for sales taxes, continues to draw scrutiny, especially after a new analysis showing the bill’s impact on some cities and towns. The way the bill was drafted would hit some cities hard. And due to the variations in the way counties divide up sales tax revenue, it would, in some cases, result in different outcomes for towns within the same county.
In Watauga County, for instance, Boone would see a jump in revenue while the rest of the county’s towns would see a drop. In all, the new analysis shows 32 out of 61 Western North Carolina cities and towns would lose revenue under the proposed distribution formula.
The bill’s main sponsor, Senate Majority Leader Harry Brown, said over the weekend that he would likely rework the bill, S369, to reduce “unintended consequences” for cities. Sen. Tom Apodaca, R-Henderson, and Sen. Ralph Hise, R-Mitchell, are both cosponsors of the bill.
Brown has said that he is pushing the change in the state sales tax system to give rural counties a greater share of the revenues. While most of WNC counties would benefit from the plan, Avery, Buncombe, Macon and Watauga counties and some towns in the region would see a large drop in revenues.
Here’s the breakdown from the legislature’s Fiscal Research Division of the impact of the bill as it is now written (with losses noted in parenthesis):
Avery County: ($318,228)
Banner Elk: ($90,265)
Beech Mountain: ($2,148)
Crossnore: ($14,380)
Elk Park: ($40,240)
Grandfather Village: ($2,236)
Newland: ($60,369)
Seven Devils: ($2,505)
Sugar Mountain: ($17,447)
Watauga County: ($1,394,220)
Beech Mountain: ($1,241,659)
Blowing Rock: ($978,447)
Boone: $575,237
Seven Devils: ($210,723)
Buncombe County: ($15,599,925)
Asheville: ($4,153,714)
Biltmore Forest: ($699,090)
Black Mountain: ($108,929)
Montreat: ($223,605)
Weaverville: ($428,028)
Woodfin: $276,108
Cherokee County: $644,986
Andrew: ($71,714)
Murphy: ($66,872)
Clay County: $836,197
Hayesville: $37,884
Graham County: $614,707
Fontana Dam: $3,701
Robbinsville: $64,392
Lake Santeelah: ($50,965)
Haywood County: $1,135,552
Canton: ($196,829)
Clyde: ($57,864)
Maggie Valley: ($49,799)
Waynesville: ($464,234)
Henderson County: $1,682,224
Flat Rock: $260,182
Fletcher: $114,642
Hendersonville: ($216,889)
Laurel Park: ($103,885)
Mills River: $818,076
Saluda: ($3,747)
Jackson County: $26,890
Dillsboro: $6,984
Forest Hills: $49,575
Highlands: ($40,292)
Sylva: $73,292
Webster: $57,957
Macon County: ($1,022,132)
Franklin: $154,729
Maiden: ($587,811)
Madison County: $2,231,853
Hot Springs: $16,037
Mars Hill: $74,078
Marshall: $25,372
McDowell County: $1,744,131
Marion: $366,573
Old Fort: $13,146
Mitchell County: $98,718
Bakersville: $36,938
Spruce Pine: $17,565
Polk County: $1,891,600
Columbus: $14,590
Saluda: $11,416
Tryon: $29,107
Rutherford County: $2,345,257
Bostic: $43,503
Chimney Rock Village: ($1,851)
Ellenboro: $112,324
Forest City: $459,719
Lake Lure: ($578,663)
Ruth: $40,508
Rutherfordton: $67,059
Spindale: $197,496
Swain County: $915,446
Bryson City: ($15,591)
Transylvania County: $775,367
Brevard: $78,143
Rosman: $69,244
Yancey County: $1,258,074
Burnsville: ($6,978)
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