Commission set to vote on sales tax referendum
A decision is expected Monday night as to whether a county-wide referendum will be held this August to let voters decide on a local option sales tax increase.
At stake is a potential annual $1.8 million in revenue expected to be gained by raising the local option sales tax by three quarters of a cent to the state limit of 2.75 cents. Also at stake to city residents is a proposed 11-cent property tax hike which is being held temporarily while city leaders see if the sales tax hike passes. The financially strapped county would also benefit from its portion of an increased sales tax in a year which has seen county commissioners propose deep cuts in local department budgets.
“Let’s do this thing together,” said Patti Nunley in a joint meeting between some city aldermen and the county’s Budget and Finance Committee.
The city has postponed its vote on the referendum to see if the county commission will vote to hold a county-wide referendum. The city may go ahead with a referendum even if the county decides not to make it a county-wide vote. A vote to raise the sales tax in the city failed last year.
“We need to work together if this thing is going to pass,” said Commissioner Ken Martin. “It’s going to take all of us.”
While together on wanting to pass a sales tax increase, county and city officials are still somewhat at odds over who will pay the $20,000 for the referendum.
“I think the city needs to pay half,” said Commissioner Michael Martin.
His suggestion was rebuffed by Nunley who pointed out since it would technically be the county initiating the vote, the city is under no obligation to help pay for it.
Commissioner George Smartt pointed out it could be divisive for city and county to haggle over who will pay for the vote, during a time when it is important for the two governments to stand united to pass the sales tax initiative.
Following some discussion, Nunley and fellow alderman Bobby Kirby agreed they would approach the city council with a proposal which would have the city pay half the election costs only if the measure is passed by the voters.
Should the commission decide to take the question to the voters, the referendum would then likely be held at the end of August – in just over a month. Election Administrator Donna Yates said it will be decided soon how long of an early voting period will be held leading up to the actual day of the referendum.
Yates pointed out that during the last election, nearly half of all people who voted in Warren County, voted early. City officials have called a meeting for Tuesday to discuss the results of the county commission’s vote.