Rocky Mount Telegram letter to editor states how the “proposed” event center and sales tax legislation could result in Rocky Mount increasing property taxes by 20%.
Sales tax redistribution plan likely to hurt Rocky Mount revenue
Friday, April 3, 2015
We all know government makes decisions that impact our lives daily. Too often overlooked is the collective impact of the actions of our elected officials at all levels.
The Rocky Mount Telegram reported the recent proposed sales tax legislation, if approved, would cause Rocky Mount to lose $1,680,463 in sales tax revenue. To accommodate for this loss, the Rocky Mount City Council will have to increase property taxes by 7 percent or cut the budget. We know the “proposed” event center will be funded via a property tax increase. According to the city expert, Davenport & Co., this one project will require property taxes to increase 9.4 percent to 14.7 percent.
Based on these two scenarios, Rocky Mount property tax payers will see a significant increase. According to my calculations the Rocky Mount City Council will be forced to increase property taxes between 15.3 percent and 20 percent. This is just to recoup lost sales tax revenue and to pay for the “proposed” event center.
Will the legislature continue to realign policy impacting local government revenue? Is this the beginning of many things that result in a property tax increase? What happens if the “proposed” event center does not meet operating projections? How will a property tax increase benefit a struggling family or single mother? Will this impact how companies view our area when deciding to locate here? Better yet, will this entice those already here to stay?
The only real solution to our dilemma is for private enterprise to create meaningful employment to the greatest number of people.
We should do that by enticing companies to locate here and the ones already here to stay. In my humble opinion, you do not encourage growth by increasing property taxes by 20 percent.
link to the letter: http://goo.gl/c2GtJE
Rocky Mount Telegram article regarding impact of sales tax legislation: http://goo.gl/NWhMaA
City of Rocky Mount Financing Presentation for Event Center: http://goo.gl/YcdxGH