By NICOLE CARTRETTE
Staff Writer

There was little opposition voiced to a quarter-cent sales tax discussed in a public hearing Monday (Oct. 1) at the Columbus County Board of Commissioners meeting. However, a conservative think tank, The John Locke Foundation, has launched a campaign opposing the tax in all counties where it is being considered, saying the counties have enough reserve funds.

The Columbus County Board of Commissioners disagrees and even board members known for leaning toward less tax and government spending say they favor the tax because they say it doesn’t unfairly target only property owners.

The county has about $6.5 million in its fund balance and is near the state’s recommended minimum balance of 8 percent.

Commissioners voted in recent months to put the proposed tax before voters in November and the move comes on the heels of state Medicaid relief.

In the phase-in plan, Columbus County’s $6 million-plus share of Medicaid costs will be completely absorbed by the state within three years. The deal calls for the county to turn over a half-cent sales tax to the state.

Interim Finance Director and Interim County Manager Leo Hunt said that in 2002 the board began spending the county fund balance in order to cover the rising cost of Medicaid. The fund was nearly depleted and left the county in a situation where no more funds could be drawn from the reserve.

It also reported that the county is gaining at least $700,000 per year in each of the three years of the county-to-state Medicaid transition.

That report, however, does not note that the county under budgeted Medicaid by nearly $1 million –meaning the county has to cough up an additional $57,000 toward its Medicaid share not budgeted.

“We need another $57,000 in the current budget,” Hunt said of Medicaid that was under-budgeted. He said that next year the county would see a benefit from the state swap but there would still be a need to reduce costs or increase taxes.

“If I’m going to pay an additional tax I’d rather pay it a penny at a time rather than pay it in one lump sum,” Hunt said.

But some taxpayers and The Locke Foundation don’t trust that the tax will actually replace any property tax. The foundation’s report states that additional tax will “only encourage more wasteful spending.”

The county commissioners hope to prove otherwise.

Finance Director Bobbie Faircloth said she and county attorney Steve Fowler had attended a conference on the quarter-cent tax. While county employees cannot advocate for the tax, they can educate the public about it, she told commissioners and presented a six-question brochure about the tax to distribute to the public.

“We can’t use public funds for advocating,” Fowler said.

The board is free to advocate for it and took that opportunity at the meeting.

“I think the public has to realize we are in a situation with Medicaid relief, “ Commissioner James Prevatte said, pointing out the quarter-cent sales tax would have less of an impact than property tax.

“That doesn’t seem like a lot to me,” he said. “Publicly, I support it,” Prevatte declared and added that it would be a tax that would “not only affect property owners but people who don’t own property and use services .”

“Think of it from that perspective,” Prevatte urged.

“This spreads it around to everybody in the county –which is an easier pill to take than a tax bill,” Commissioner Bill Memory agreed. “This will generate about $1 million. It is a good thing to have a sales tax.

“It’s painless I think,” Memory said, pointing out it equaled a quarter on a $100 purchase.

“I’m against raising property tax. I do support this tax,” Commissioner Ricky Bullard said.

“I agree with what’s been said,” Commissioner Ronald Gore added. “The property owners have had the burden on their backs too long. It’s probably as fair a tax as we could implement on anyone. We certainly don’t need to raise property tax anymore.
“Whether out of town or local people, we’re all going to pay the same thing.”

“Not just a few have to pay the bill,” Commissioner Lynwood Norris said. “I publicly support it myself.”

“I truly support that also – it’s the right way to go,” Commissioner Amon McKenzie said.

“I always go along with this board 100 percent,” Chairman Sammie Jacobs said as the audience chuckled.

Irvin Stocks said he has seen taxes come in “a little at the time” and this tax was putting things “on the backs of little people –people who have no property and work for minimum wage .”

He said the state and counties need to go back to inventory taxes on businesses. “I’ve got nothing against big business but I feel they should pay their fair share,” Stocks said. “Please don’t put it on we working people, the disabled, even the people on Medicaid.”

Harry Foley addressed the board next and made it clear he was not speaking on behalf of the Citizens for Better Government, but for himself.

“I’m here not to burn you but to praise you,” Foley said. “I am in favor of the quarter-cent sales tax.”

He said it was his understanding that food and prepared meals would not be taxed.

Foley pointed out that in 2009 the county should have millions in revenue from not having to pay the Medicaid share.

“How about plan on how you guys are going to spend that money,” Foley insisted. “Don’t just spend frivolously.”

“I’m not for taxes at all,” Robert Adams said. “This is a fairer tax than my property tax.

“I’d like to see property tax done away with.”