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6/19/02

Board wants sales tax

SMN


Haywood County officially endorsed keeping the 1/2-cent sales tax once the state stops collecting it, a switch that could occur as early as July 1 of this year.

“There is some talk in the General Assembly about accelerating the schedule and letting us take the half cent this year,” said County Manager Jack Horton.

The General Assembly enacted the sales tax with plans to take it off the books in 2003. However, legislative leaders gave towns and counties the option of keeping the tax if they chose. Now, lawmakers have decided to keep reimbursement previously returned to towns and counties, and most local governmental units are following up by keeping the tax. The half cent could bring as much as $1.8 million annually to Haywood County.

Not everyone, however, is happy with the decision. Charles Worrell and his wife own High Country Furniture near Maggie Valley, and he says higher sales taxes are detrimental to retail sales and hurt the local economy.

“Since 9/11 we’ve been fighting for sales. To put another regressive tax on people is detrimental,” said Worrell.

Commission Chairman Jim Stevens, however, said the money was sorely needed by the county.

“We’ve got to provide the needed services for citizens. I’ve always thought the sales tax was a good way to tap into all the people who travel here and not put a burden on the local property taxpayers,” said Stevens.

Horton said the difference in the sales tax revenue and the reimbursements would net the county around $400,000. Commissioners disagreed on how they would spend that money if it becomes available this year. Stevens and Bill Noland suggest using it for the county’s new jail, while Carlyle Ferguson and Wade Francis want to lower the property tax rate. Commissioner Mary Ann Enloe said she had a different plan to lower property taxes, but that she would vote to use the sales tax money to fully fund the school system’s budget request.

Enloe and Francis are both up for re-election in November.