Reduced sales tax proposals pass House


It could take days to sort out the flurry of activity this week as the General Assembly has pushed to wrap up its work for the year, but it appears that Vance County is getting a mixed bag.

On the issue of a possible referendum on a local sales tax to support school construction, nothing final will happen this year. But legislation has moved farther than legislators or County Manager Jerry Ayscue seemed to expect a few months ago.

Early today the state House passed two bills, H.1050 and H.756, that would allow county referendums on a local-option sales tax for the schools.

H.1050 originated with Pitt County. It would allow the revenue from the new sales tax to be used for capital outlay at public schools or community colleges. When Vance County was added to the bill, a provision was included that allows Vance to use the money for public schools only.

H.756 is an alternative aimed at Lee County. It would allow the tax revenue to be spent only on public school capital projects.

Each bill would set the new tax at half a cent on the dollar. That’s half of what the bills originally proposed and what Vance County wanted, but the House leadership was unwilling to do a full cent.

The bills now move to the Senate, where they will have to wait until the spring’s short session for action. As more school systems embrace the idea of a sales tax for school construction, a multibillion-dollar problem statewide, either House bill could become the vehicle for counties to hold sales tax referendum.

The Vance County Board of Education had requested a 1-cent sales tax to raise an estimated $3 million per year for school construction. That revenue would cover the cost of a new middle school in four years and the cost of an elementary school in three years.

The Board of Commissioners backed the request this spring and formally sent it to the county’s Raleigh delegation, Reps. Jim Crawford and Michael Wray and Sen. Doug Berger. All three agreed to work for the legislation, although Wray and Berger expressed doubts about success because the legislature traditionally sees the sales tax as the state’s province.

The Henderson City Council this month endorsed the proposed referendum for a 1-cent sales tax.

The House action on the sales tax legislation came as the Senate was giving up on passing a lottery this year. Forty percent of the revenue from a lottery would go toward school construction.

The Senate couldn’t break the solid opposition of five Democrats and all 21 Republicans. That issue is sure to come up again in the spring.

Regarding some other issues of local interest, based on reports from The Associated Press and The News & Observer:

* The General Assembly approved a bill to toughen the penalties for shooting into an occupied car or house, an all-too-regular occurrence in Vance County.

* A bill to crack down on gang activity stalled in the Senate over the estimated $130.7 million cost. Henderson City Manager Eric Williams, in his role as the chairman of the Vance Organization to Implement Community Excellence, had touted the legislation, and Berger had said he thought it would pass.

* The legislature passed a bill that will make economic incentive deals public information sooner.

* Lawmakers officially decided that June Atkinson won November’s election for state superintendent of public instruction. That marked a victory for Henderson’s Mary Jo Wilson, the former head of career and technical education for Vance County Schools. Wilson assisted Atkinson’s campaign and remained involved through the disputed election’s many twists and turns through the court system and the legislature.

The House and Senate could adjourn as early as today. Their first scheduled session of 2006 is May 9.