Sampson County Commissioners recently showed support for a bill which would change sales tax allocations.
The North Carolina Association of County Commissioners (NCACC) requested input on legislation recently presented by the Senate to make changes to the economic development incentives model, restructures the distribution of sales tax, expand the sale tax base and extends additional sales tax authority to counties. During a recent meeting, Finance Officer David Clack presented the information in House Bill 117 and its potential impact on Sampson County.
Clack said the bill is included in the NC Senate’s budget. He also noted how legislators addressed NCACC’s issue with making all the sales tax, a state tax.
“This proposal here leaves it to a county level sales tax …,” Clack said.
The cmmissioners voted unanimousvly to send a letter of support for the bill.
“It’s a win-win for Sampson County and other rural counties,” Chairman Billy Lockamy said.
Under sales tax changes, Clack said it expands the state and local tax base to include several measures. Some included veterinary services; grooming, training, boarding related to animal care and repair and maintenance of tangible personal property. Clack also discussed distribution of sales tax revenue to local governments based on a per capita and point of collection system, with percentages changing each year. Under the proposal, the state would distribute 20 percent of revenue based on sales location and the remainder would be based on a county’s population. It also gives freedom to allow counties to decide how they allocate money to towns.
Under the Senate proposal, for fiscal year 2016-17, the county would receive $2.29 million in potential revenue, which includes levying another one-quarter cents sales tax, if officials wanted to do so. Projected figures for 2019-20 show a total of $5 million.
Commissioner Clark Wooten showed support for the bill.
“To me it looks might good and I think it would be remiss of us if we didn’t (show support with a letter from Sampson County),” Wooten said.
The bill is not officials and will have to go through changes before its implemented.
“For a rural county, it looks mighty good to me …” Wooten said.