Referendum on sales tax increase possible in Jackson
Jackson County Commissioners will vote this week on whether to approve a referendum vote for a quarter-cent sales tax increase to appear on the June 7 ballot for the U.S. House of Representatives primary.
They’re considering the tax as a way to pay for substantial capital funding requests from Jackson County Schools and Southwestern Community College. The school system has asked for more than $12 million to replace failing roofs, water and HVAC systems, also including about $3 million for athletic facilities. Meanwhile, SCC just completed a master plan that calls for $32 million of capital improvements to its Jackson County campus over the next 20 years or so, including a $16 million health sciences building.
A quarter-cent sales tax would produce an estimated $1.1 million each year.
“It puts it in the hands of the people. The people are going to decide,” Chairman Brian McMahan said of the potential referendum vote. “We recognize these projects are a need, and we’re going to meet them either way.”
Commissioners have expressed support for fully funding the school system’s request — though perhaps sans the $3 million for athletic facilities — and have considered taking out a loan to meet the need. If they cut the athletic expenditures out of the package, they’d likely be able to make the yearly loan payment using the sales tax revenue they already receive that’s earmarked for school system needs.
But faced with requests from SCC as well, commissioners began discussing the potential of a tax increase. The revenue stemming from that extra quarter-cent would be earmarked for education projects, providing a constant stream of revenue to keep roofs from leaking and classes from being held in falling-down buildings.
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Haywood and Buncombe counties have both adopted the quarter-cent sales tax to fund education, and Henderson County has the question on the ballot for November. In 2012, Swain County voters voted 3 to 1 against adopting such a tax.
Another wildcard in the mix is the Connect N.C. bond referendum, on the ballot for March 15. If passed, the $2 billion bond would make $7.1 million available for capital projects at SCC, to be used in any of the three counties the college serves.
Commissioners will vote on a resolution to place the sales tax question on the ballot at their regular meeting, 6 p.m. Thursday, March 3, at the Jackson County Administration Building.
— Holly Kays, staff writer
