By Susan Dickson
Staff Writer
The Orange County Board of Commissioners voted unanimously on Tuesday to dedicate any funds raised from a quarter-cent sales-tax referendum to schools and economic development.
Earlier this month, the board voted to put the referendum on the November ballot, and on Tuesday board members voted to allocate 50 percent of potential funds to economic development and 50 percent to education.
If approved, the tax would cost residents an additional 25 cents on a $100 purchase, though it wouldn’t apply to groceries and medicine. County staff has estimated that the tax would raise $2.5 million annually.
Economic-development projects that could be funded by the tax include the expansion of the county’s Small Business Loan Program, innovation centers for new businesses, agricultural economic development and business-development grants.
Board members have said they would like to see funding go toward economic-development initiatives in order to improve the county’s sales-tax base. Currently, over 75 percent of county revenue comes from property taxes.
Education proceeds from the tax would be split equitably between the county’s two school systems, with facilities improvements of older schools and the acquisition of technology as priorities for funding. County and school leaders will meet next week to discuss specific projects that could be funded.
Commissioner Barry Jacobs said he would prefer that the economic-development and schools funding not be limited to the proposed projects.
“That way, you leave the door open for the schools systems if they want to change that, support it, tweak it,†he said.
Orange County voters narrowly rejected a proposed quarter-cent sales tax on the November 2010 ballot, with 51.24 percent, or 21,180 votes, against the sales tax, and 48.76 percent, or 20,755 votes, in favor. Prior to last year’s referendum, the board had voted to dedicate 42.5 percent of potential proceeds to economic development, 42.5 percent to schools and 15 percent to be split between emergency services and libraries.
In its 2008 budget, the legislature gave counties the option of a quarter-cent sales-tax increase or a 0.4 percent land-transfer tax to help compensate for money taken away from counties when the responsibility for paying for Medicaid was turned over to the state. Orange County voters overwhelmingly rejected a transfer-tax referendum in May 2008.
The commissioners also discussed a possible half-cent tax referendum and $10 vehicle tax that would fund regional and local transportation planning initiatives, including light rail and increased bus services. Officials are working with Durham and Wake county leaders to develop a transit plan that would be funded by the half-cent tax if officials put it on the November ballot and voters approve it.
Officials in all three counties will have to make a decision on the possible tax by June.
In other action, the commissioners voted to designate the Murphey School as an Orange County Local Historic Landmark. The Murphey School has a rich history, opening in 1923, with the auditorium added in 1936 as one of Franklin Roosevelt’s Works Progress Administration projects. It closed its doors in 1959 when students transferred to schools in Hillsborough. The building was subsequently leased to a church, purchased by a family and even used as a nightclub before sitting empty for many years.
Jay Miller and his wife, Ebeth Scott-Sinclair, opened the Shared Visions Retreat Center at the school last year after spending more than two years renovating the historic building. The center, located off Old N.C. 10 in eastern Orange County, provides space and services to local nonprofits and hosts programs and activities.