Stone Proposes an Income Tax Minutes from the May 5

FRANKLIN COUNTY REPUBLICAN PARTY
101 WEST NASH STREET
P.O. BOX 909
LOUISBURG, NORTH CAROLINA 27549
(919) 496-1469
www.FranklinNCGOP.com

Stone Proposes an Income Tax

Minutes from the May 5, 2005 Franklin County Board of Commissioners Meeting

13. Sales Tax

Chairman Swanson stated as follow up discussion from the May 2^nd work session, Commissioner Lancaster would like to discuss the possibility of a new ½ cent sales tax option for school construction cost.

Commissioner Lancaster stated he wanted to clarify that the ½ cent sales tax option has to first be approved by the General Assembly and if approved, it comes back to the county and a public hearing is held and the Board votes to implement that tax.

Motion was made by Commissioner Lancaster and seconded by Vice-Chairman Buffaloe, to approve a ½ cent sales tax option be put on a Bill for approval by the General Assembly.

Commissioner Foy stated he does not want to see more taxes.

Commissioner Stone stated a sales tax is a regressive tax. He feels an income tax proposal is a far better approach to this issue of raising revenue. People who make less than $30,000 would not be subject to any income tax increase. Those people in the $30,000 to $65,000 bracket, there would be a 1% increase, $65,000 to $100,000 bracket, there would be a 2% increase, and above $100,000, there would be a 3% increase. On line 13 of the State Income Tax Form D-400, and see what the North Carolina taxable income is and then apply that figure to these three percentages.

A substitute motion was made by Commissioner Stone that the Board recommend to the legislative representing Franklin County that an income tax for Franklin County be enacted according to the schedule he has just outlined. The substitute motion was seconded by Commissioner Gupton.

Chairman Swanson called for a vote on the substitute motion. The clerk called the roll. Commissioner Lancaster voted "NO"; Commissioner Gupton voted "YES"; Commissioner Dunston voted "YES"; Chairman Swanson voted "NO"; Vice-Chairman Buffaloe voted "NO"; Commissioner Stone voted "YES"; and Commissioner Foy voted "NO". Motion failed 4 to 3.
[Note: Foy and Lancaster are the two Republicans on the board.]

Chairman Swanson called for a vote on the first motion made by Commissioner Lancaster to approve a ½ cent sales tax option be put on a Bill for approval by the General Assembly.

Motion was made by Commissioner Gupton and seconded by Commissioner Stone to table the issue for further discussion.

Mr. Coudriet stated the cross over deadline for Bills to the General Assembly has been extended to June 2^nd. Any legislation that the Board wants to entertain would have to be introduced within the next few days to ensure that it was placed in the appropriate committee to be brought out of committee and put before the full chamber for a vote. The window is quite narrow to get a Bill introduced and out of committee and through one chamber and into the next in time to meet that deadline.

Commissioner Foy stated there is still the issue in the legislation regarding the sunset of the 6-1/2% to 7% sales tax. He does not feel a 7-1/2 cent sales tax will be approved.

Mr. Coudriet stated there is a local Bill that has been introduced in the House on behalf of Pitt County to authorize this very issue. In discussion with the Senate, it appears that Bill is going to be amended to include Vance County, which made a very similar request to Senator Berger. There is debate as to whether it will make it out of committee, much less the full House chamber and then go to Senate. That Bill does require it to be a referendum vote. The Board would have to vote to put it on a ballot and voted on by the people.

Vice-Chairman Buffaloe called the question.

Chairman Swanson called for a vote on the motion made by Commissioner Gupton and seconded by Commissioner Stone to table the issue for further discussion. The clerk called the roll. Commissioner Lancaster voted "NO"; Commissioner Gupton voted "YES"; Commissioner Dunston voted "NO"; Chairman Swanson voted "NO"; Vice-Chairman Buffaloe voted "NO"; Commissioner Stone voted "YES"; and Commissioner Foy voted "YES". Motion failed 4 to 3.

Chairman Swanson called for a vote on the motion made by Commissioner Lancaster and seconded by Vice-Chairman Buffaloe to approve a ½ cent sales tax option be put on a Bill for approval by the General Assembly. The clerk called the roll. Commissioner Lancaster voted "YES"; Commissioner Gupton voted "YES"; Commissioner Dunston voted "YES"; Chairman Swanson voted "YES"; Vice-Chairman Buffaloe voted "YES"; Commissioner Stone voted "NO"; and Commissioner Foy voted "NO". Motion passed 5 to 2.