Residents in Transylvania County will vote in November on whether to raise local sales tax by a quarter-cent as officials say growing tourism interest can help pay for infrastructure needs.
Commissioners on Monday voted unanimously to add the sales tax question as a referendum on the general election ballot in November.
The increased tax would not apply to unprepared foods, like groceries, or prescription medication and gas purchases.
The proposed sales tax increase is seen as a way to prevent a possible property tax increase and is estimated to raise just over $1 million annually, according to a presentation given by county staff Monday. Surrounded by the Blue Ridge Parkway and two national forests, Transylvania County has a low amount of developable land, officials point out. This limits population growth – and the county’s tax base.
“Our visitors don't get a vote on this, but they do get to come into our county and help fund some of these projects that we are faced with finding funding for,” Commissioner Teresa McCall said, calling the sales tax a way to “ease the burden” for property owners.
The county’s current sales tax is 6.75%, with the 4.75% collected by the state and 2% remaining available for local government use.
Money collected from the extra tax will be put in the general fund and is not designated to be spent on any particular project. But commissioners stated Monday their intent is to use it to help pay for capital projects like the new courthouse. Commissioners voted to build a new courthouse on county owned land in 2023, when the price was estimated at $44 million.
Approximately 45 counties in the state have passed a similar tax, including many surrounding counties, like Buncombe and Cherokee. Commissioner Chase McKelvey noted those counties in his support for putting the question on the ballot.
“What do all those have in common with Transylvania County? Tourism,” McKelvey said. “But they also have limited resources to all pull from,” he said, noting the lack of developable – and taxable – land in Transylvania County.
While the question will be on the 2024 ballot, the commission has no obligation to implement the tax anytime soon. It was unclear at Monday’s county commission meeting whether commissioners intended to delay implementing the tax, if it should pass.
Should the referendum pass, state law does not give local governments a deadline as to when they have to start the sales tax, according to county staff.
Commissioner Larry Chapman was initially hesitant to pass the tax when it was brought up at previous meetings – especially given the length of the ballot this year – but was convinced by Monday’s meeting.
“I felt pretty reluctant about it,” he said Monday, but ultimately voted to put the question on the ballot, “after considering the good that it could do.”
