By Connie Leinbach
Hyde County is looking to raise money with an increase in the sales tax and voters will have the chance to weigh in during the Nov. 5 general election.
The Board of Commissioners at their Feb. 5 meeting passed a resolution to place on the ballot a question for voters to approve a quarter of a cent increase. However, this tax would not be on everything.
North Carolina General Statute 105 Article 46 allows counties to levy this tax and under which they can exempt some items. Hyde County would exempt “unprepared foods” (groceries), gas and prescription medications.
If approved, the sales tax rate would go to 7%, up from the current rate of 6.75%.
“We’re looking for alternative revenue streams outside of the normal property tax,” said Hyde County Manager Kris Noble at the meeting.
At prior meetings, the commissioners heard presentations on Land Transfer Taxes and Meals and Beverage Taxes. Neither of those was chosen.
According to information provided by the county, raising the sales tax would significantly lessen the need to raise property taxes, although the commissioners could raise property taxes down the road.
Revenue from the additional tax will be used for administrative costs associated with fire and EMS and some revenue will go toward Hyde County Schools.
Property taxes are paid only by property owners, but this local tax would be something that everyone would pay when they purchase goods in the county.
The ballot for-or-against question will be as follows: “Local sales and use tax at the rate of one-quarter percent (0.25%) in addition to all other state and local sales and use taxes.”
To date, 47 other counties in the state have voted to levy this tax.
Additionally, the county is looking to enact fire district taxes, but it would first have to formally create fire districts.
Each district would set their own tax, subject to a cap of $1.50 per $100 of assessed property value.
According to the information about this on Hyde County’s website, in 2021-2022, the net value of real property was $931,782,426. The amount of revenue generated from each cent increase would be around $88,000 when accounting for the collection rate.
This estimate is a total county-wide. There are seven fire districts, and each has a different value of real property. So, the amount of revenue will vary between districts.
Also, the districts would not be administered countywide and so would only apply to areas where residents want the extra funding.
