<< Back 7/3/02 Greenwood says state wants counties blamed for tax hike By Beth Seay It was business as usual in an unusual spot for the Macon County commissioners as they convened their July meeting at the Highlands Conference Center. They were welcomed by Highlands Mayor Buck Trott, and the meeting was attended by about 15 onlookers. The commissioners voted to hold another public hearing on the proposed changes to the Macon County Watershed ordinance. George Sweet, representing the county’s Watershed Council, said that changes in the proposed ordinance have been made since the public hearing and that another hearing would be in order. Sweet mentioned changes including allowing development density at 18 percent for construction other than residential. Previously, the ordinance had suggested a 12-percent limit on development density, with single-family dwellings limited to two per acre. Commissioners will hold the public hearing during their next scheduled meeting at 9:30 a.m. on Monday, Aug. 5, in Courtroom B at the Macon County Courthouse. Commissioner Charlie Leatherman suggested that it might “silence some of our critics” if the public hearing were held in the evening. Harold Corbin referred to the “disruptive nature” of the last public meeting, a work session, held in the evening, and the board voted unanimously to stick to the morning time. The board also adopted an ordinance regulating the draining of impoundments within the watershed area of the town of Highlands, including an interlocal agreement between the county and the town regarding regulation of the ordinance. The board had a lengthy discussion about the adoption of the half-cent sales tax currently being recommended by the state. Initially, the state was going to allow each county to begin receiving the extra half-cent sales tax in July 2003. Now, however, County Manager Sam Greenwood says the state Senate’s budget includes a provision allowing counties to begin keeping the half-cent this year. The tax is already in place but is currently being kept by the state. State lawmakers are considering abolishing the reimbursements to local governments for taxes abolished a decade ago and allowing counties to replace it with the half-cent sales tax. “The situation is thoroughly confused,” said Greenwood, adding that the two branches of the state legislature are “pursuing separate agendas on the sales tax issue, and the counties yet a third, which was the one originally explained to them in the spring by the governor.” He added that the only thing uniform is that “the counties, especially Macon County, would still be getting hammered” in the sense that the state would distribute the extra tax to the counties “50 percent by population and 50 percent by source of sale, which means that we are basically subsidizing the big 15 urban counties.” He said that the state wants to “pin responsibility” on raising the sales tax to 7 percent on the counties. Greenwood also said the August 2002 timetable suggested by the Senate “borders on ridiculous.” Commissioner Janet Greene agreed, saying, “There’s no way they can do that by August,” including getting the needed forms to the business owners. She also mentioned that the cost of redoing the forms would be enormous (she also noted that the forms have only recently been redone). Greenwood also pointed out that since the county has already held a public hearing on adoption of the half-cent sales tax, they are prepared to move in whichever direction the state finally suggests. “It’s just more of the smoke and mirrors that have characterized the entire state budget process for the past few years. What they are doing is keeping us in limbo, and they’ll notify us at the last possible minute – or perhaps after the last possible minute – on what we can do. In the meantime, we’re all strung out on a limb,” said Greenwood. In other business, the board agreed to sign a contract with a company from Lumberton, HighetKräcker, to place advertising signs on vehicles run by Macon Area Transit Services. Transit Services Director Kim Angel told the board that 14 other counties in North Carolina contract with HighetKräcker, which will procure and produce all the ads. The county will have right of refusal on any advertising deemed inappropriate, and the service may be terminated altogether with a 90-day notice. HighetKräcker will collect the revenues, with the county receiving 40 percent the first year, 50 percent the second and 60 percent the third. Ads will cost $200 per vehicle per month, (the county runs 10 vans) which she estimated would generate $48,000 in the first year, giving about $19,200 directly to the Transit Services. The board agreed unanimously with the proposal.