Up and Coming Weekly is a weekly publication in Fayetteville, NC and Fort Bragg, NC area offering local news, views, arts, entertainment and community event and business information.
Issue link: http://www.epageflip.net/i/795843
MARCH 8-14, 2017 UCW 11 WWW.UPANDCOMINGWEEKLY.COM It's been awhile since Cumberland County Commissioners and Fayetteville City Council members have spoken with each other regarding the future of local sales tax receipts. Mayor Nat Robertson is disappointed. "The county is 30 days in default to start a joint discussion," said Robertson at a council committee meeting. He was referring to an agreement reached last year that both boards would meet no later than January to begin discussions on a new sales tax distribution contract. The current interlocal agreement is in effect until June 30, 2019. It virtually extended a contract that has been in effect for about 15 years. The towns of Spring Lake, Hope Mills, Stedman, Wade, Falcon, Godwin and Eastover are also parties to the arrangement. It provides that city and county elected officials begin negotiating a new sales tax distribution agreement no later than last month. Robertson said he hadn't heard from Commission Chairman Glenn Adams. But in December, Adams proposed that a joint committee begin work on a new contract. City Council rejected the idea because it didn't like the proposed membership composition. The city favors a working group of all involved so the issue can be resolved in six months. However, the four-member council committee offered no suggestion as to the working group's makeup. Robertson, Mayor Pro Tem Mitch Colvin and councilmen Jim Arp and Kirk deViere serve on this new group put together by Robertson. By law, county government has the authority to use one of two methods to distribute sales tax receipts. The method currently in use tends to favor the municipalities. But all parties agreed to it. Fayetteville took in nearly 50,000 residents in the 2005 phase V annexation better known as the 'big bang.' Council agreed to rebate to the county 50 percent of sales tax proceeds from the annexed areas. There was no expiration date. Robertson says it's long past time that agreement was phased out. The council committee agreed to the mayor's idea, noting the agreement has cost the city $60 million in lost revenue. The proposal is that refunds to the county be phased out by 10 percent annually beginning in 2021. After 2029, the city would retain all tax proceeds from the annexed areas. County government is considering adopting another method of revenue distribution using established tax districts. The entire county is Cumberland's tax district. The city limit of Fayetteville is its district. However, most council members believe they have an advantage since the largest number of voters live in the city and smaller towns. And county commissioners would be reluctant to change the formula. "I'm a little disappointed that we haven't started this conversation," council committee member Jim Arp said. And now, complicating matters are lower property values this year, meaning all units of local government may have to adjust their property tax rates and/or cut services in order to reach revenue neutrality. Council awaits a response from the county. JEFF THOMPSON, Senior News Reporter. COMMENTS? news@upandcomingweekly. com. 910.484.6200. NEWS Sales Tax Agreement? by JEFF THOMPSON North Carolina legislators are considering a bill that would result in a significant tax break for disabled veterans living in the state. Rep. Nelson Dollar (R-Wake) is the primary sponsor of the measure. It would grant vets a 100 percent exemption from the payment of property taxes. As written, the bill is an unfunded mandate that would not provide cities and counties an offset for the loss of tax revenue. To qualify as a disabled veteran and be eligible for a homestead property tax exemption under North Carolina law, a person must meet certain criteria. The property owner must be a permanent North Carolina resident and legally own and occupy the residence. The property owner must be a veteran of the U.S. Armed Forces and have a service-connected disability from the U.S. Department of Veterans Affairs, and the veteran's character of service at separation must have been honorable or under honorable conditions. The surviving spouse of a disabled veteran may also qualify for a tax exemption. The current disabled veteran homestead exemption is the first $45,000 of the assessed property value of one's home. Dollar's bill would increase the exemption to 100 percent of a home's tax value. Cumberland County would lose $2.77 million in annual revenue if the bill becomes law. The City of Fayetteville would lose $1.17 million. Both local governing bodies have discussed the consequences of the measure with local legislators. "It is my understanding that they are working on some language to fix the unfunded mandate implications of the bill," said Rep. John Szoka (R-Cumberland). "I am in favor of recognizing the sacrifice … disabled veterans have given in the service of our country and I think that this would be a good public policy," Szoka added. He clarified, however, that he does not favor passing unfunded mandates down to cities and counties. "I'd prefer the exemption be done on state income tax rather than property tax," said Rep. Billy Richardson (D-Cumberland). "That way it would spread the burden around statewide not just on the counties that would be heavily impacted by loss of property tax revenue," Richardson added. "Cumberland County already does so much for veterans." The measure is in a house committee presently. Rep. Dollar did not respond to Up & Coming Weekly's repeated requests for comment. Details of the property tax exemption and other services available to all veterans can be found at the Cumberland County Veterans Service Office at 301. E. Russell Street, adjacent to the courthouse. The office assists veterans and their dependents in obtaining benefits to which they are entitled by: submitting claims for benefits to the Department of Veterans Affairs; reviewing and following up on decisions of the VA for fairness and accuracy; and writing and submitting appeals to the Board of Veterans Appeals for disputed decisions. These services are always free to veterans and their dependents. Veterans services officers are available for one on one counseling Monday - Thursday 8:30 a.m. to 3:00 p.m. and on Fridays from 8:30 a.m. to 11:00 a.m. North Carolina Veterans Tax Relief by JEFF THOMPSON A proposed bill would grant vets a 100 percent exemption from the payment of property taxes.