Dare County Release Dated 8/7/2015:

Vote is eminent – citizens and property owners are urged to call state representatives

A revised sales tax redistribution plan, released by the Senate on Thursday, would split local option sales tax revenue on a 50-50 basis whereby 50% of local option sales tax would be distributed based on point of sale and 50% would be distributed based on population. While the revised plan softens the impact for some counties, it hurts a larger number of counties than the original plan.

Dare County stands to lose $4.5 million in next year’s budget based on projections from the General Assembly’s Fiscal Research Division.  This analysis does not consider counties where sales tax growth occurs at a rate higher than the state average.

Proponents of the sales tax redistribution plan favor it as a way of helping economically distressed counties, which are designated Tier 1 counties by the NC Department of Commerce.  However, the revised plan penalizes some of the distressed Tier 1 counties while benefiting some more affluent Tier 3 counties. Dare County, as a Tier 2 county, stands to lose the most.  Dare would give away the greatest percentage of revenue of North Carolina counties under either of the Senate’s proposals to redistribute sales tax.

“The intended goal of the proposed change to help poorer, rural counties is noble, but the logic of this sales tax redistribution plan does not hold up under scrutiny,” said Bob Woodard, Chairman of the Dare County Board of Commissioners.  “The General Assembly must find a way to help the less prosperous areas of North Carolina without harming tourism-based and other income-producing areas of the state.”

The 50-50 tax plan will likely be voted on early next week. All citizens and those who own vacation or retirement property in Dare County are encouraged to call or e-mail state legislators immediately to urge them to take a stand against sales tax redistribution. Contact information is available at