Dare will still take a $4 million hit from latest sales tax plan

No direct budget talks have taken place yet in the General Assembly, but there are efforts to clear out the “clutter” before negotiations begin.
 
Anticipating the House’s resistance, the Senate scaled back a plan to redistribute sales tax revenue that was inserted into the Senate version of the budget and added it to House Bill 117, N.C. Competes, an economic development measure requested by Gov. Pat McCrory.
The new proposal splits the distribution of sales tax revenue with half based on point-of-sale and the other half on population. If made into law, the redistribution would go into effect in the fiscal year beginning July 1, 2016, and instead of being phased in over four years as in the previous plan.

The 50-50 scenario would reduce sales tax coming back to Dare County and local municipalities by 24 percent. Under current law, which dictates sending 75 percent of the revenue back to local governments where a product or service is sold and 25 percent distributed around the state according to population, Dare County would receive an estimated $19.1 million in the 2016-17 fiscal year.

Dare County has an advantage under the current law because its tourism industry draws big dollars in sales taxes relative to its small population.

Under the new plan, the amount would be reduced to $14.6 million, which is a $4.6 million cut, unless a proposal to expand the sales tax base is approved to include new sources of money. With that expansion, estimated sales tax revenues would be $15.1 million, which is a $4 million reduction — 21 percent — from projections for the same time frame under current law. The municipalities also would feel the same percentage of reductions under both scenarios.

Currituck County, without the expansion, would lose 8 percent or $707,624; with expansion of the base the percentage would drop to 4 percent and a $400,000 loss.

“The intended goal of the proposed change to help poorer, rural counties is noble, but the logic of this sales tax redistribution plan does not hold up under scrutiny,” Bob Woodard, Chairman of the Dare County Board of Commissioners, said in a statement last week.....

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By Sandy Semans Ross on August 9, 2015

‘Historic day’ marks end to long battle over a vital bridge

By Russ Lay on June 16, 2015

 

The deal calls for a “jug-handle” bypass around the troublesome Mirlo Beach area south of the Bonner Bridge, which will be replaced by a parallel span over Oregon Inlet. Below, Gov. Pat McCrory with Transportation Secretary Tony Tata at Oregon Inlet Monday. (Russ Lay)

 

Gov. Pat McCrory declared Monday a “historic day for the people who call the Outer Banks home and the millions of visitors who travel here each year. Today, we begin building a bridge that has been more than two decades in the making.”
With that, the governor confirmed what many Outer Banks residents and visitors learned a few hours earlier:
The Southern Environmental Law Center, representing Defenders of Wildlife and the National Wildlife Refuge Association, will withdraw its legal challenges against building a parallel replacement to the Bonner Bridge.
Joined by state officials, Southern Environmental Law Center representatives and a spokesperson for the National Wildlife Refuge Association, the governor held a press conference on a steamy beach at the southern end of the Bonner Bridge.
The backdrop: An Army Corps dredge and returning charter boats gliding through Oregon Inlet.
While much work remains concerning a permanent fix for the new inlet cut by Hurricane Irene in 2011 and the paved portion of N.C. 12 through the Pea Island National Wildlife Refuge, the players in the years-long struggle now seem to be moving in the same direction.
“This has been more than two decades in the making and I’m convinced if these groups had not had viable discussions during the past many months this could have been delayed for another decade, and that is totally unacceptable,” McCrory said.
The governor also acknowledged the team effort, reserving special praise for N.C. Transportation Secretary A.J. “Tony” Tata , NCDOT General Counsel Shelly Blake, Julie Youngman, senior attorney for the Southern Environmental Law Center, and Jerry Jennings, NCDOT District 1 engineer.
Before Monday, many wondered if a new bridge would ever be built. Secret legal negotiations were dragging into their ninth month in an effort to settle lawsuits filed by the environmental groups that had stopped work under a $216 million contract awarded in 2011.
The only land connection to Hatteras Island is well past its expected lifespan. Opened in 1963, it was built to last 30 years. Now, it is considered structurally deficient but still safe after more than $50 million in continual repairs.

COMPLETE STORY  OBX VOICE