Posted: Thursday, July 23, 2015 12:00 am
As an image-changer, this one is pretty good. Who’d expect a Republican to rob the rich and give to the poor?
But that’s what N.C. Senate Majority Leader Harry Brown wants to do. The target of his holdup plan is the wealthy counties that generate the lion’s share of state sales tax revenue.
Under the state’s formula for the local-option portion of sales-tax proceeds, 75 percent goes to the county and city where the sale takes place. And 25 percent is distributed according to population.
Brown, an Onslow Republican, would adjust the formula over four years so that 80 percent of the money is distributed by population and only 20 percent by sale location.
This would be a glorious windfall for business-poor communities like Robeson County, whose revenue harvest would grow from $3.4 million to $8.4 million by fiscal 2020. Even Cumberland County, the retailing hub of this region, would gain about $3 million from the change.
But Charlotte and Mecklenburg County, the Triangle and the state’s most popular tourism destinations would take a painful hit that they see as devastating.
Gov. Pat McCrory, former mayor of Charlotte, says he’ll veto Brown’s bill. The governor insists that it “will cripple the economic and trade centers of our state that power our economy.” He added that, “This bill will result in a tax increase for millions of hard-working middle-class families and and small business owners throughout North Carolina.”
Brown’s retort was harsh: “I can’t figure out if Pat thinks he is the governor of Charlotte or the mayor of North Carolina.”
Senate slaps at the Republican governor are in fashion lately. Brown’s jab came a few days after Senate Rules Committee Chairman Tom Apodaca told a reporter that, “The governor doesn’t play much of a role in anything.”
It looks to us as if he’s playing a role in common sense. McCrory is right that the loss of tens of millions of dollars in sales-tax revenue will leave counties like Mecklenburg or Durham with little choice but to raise property taxes. All that commercial infrastructure takes a lot of tax money to support. Police, fire, rescue, inspections and other personnel have to be paid, and city-owned roads and bridges have to be built, paved and maintained. Sales-tax revenue helps do that. With less sales tax, and without business privilege fees – which lawmakers also took away – what’s left but property taxes?
Brown’s plan needs rethinking. It’s nice to see a Republican Robin Hood, but he’s courting some unintended consequences.
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Thursday, July 23, 2015 12:00 am.
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