Governor Pat McCrory has now made it clear, he is against a Senate plan to redistribute sales taxes. And he’s looking for allies in that fight.
It was billed as a speech to mark UNC Day, a day to celebrate the state’s higher education system and also a chance for officials to meet and lobby lawmakers on higher education issues. And the bulk of McCrory’s remarks were about higher education. Then came this, "There is a proposal right now to redistribute our sales tax. Which I believe will cause great harm to the economic engines of this state."
A bill now before the North Carolina Senate would change the way local sales taxes are distributed. Right now 75 percent goes to the county where the sale takes place, 25 percent gets redistributed statewide by county population. The Senate bill would change that redistribution to 100 percent. It’s a big hit for urban counties like Mecklenburg and Wake, a potential economic boon for rural counties. But the governor believes, "It would actually raise taxes on millions of citizens and job creators in this state."
He did not explain how, but here in Charlotte, city leaders have said they may have to raise property taxes to make up the revenue. Which is why McCrory says, "It will cause harm, it will also decimate the travel and tourism industry in the west, in the cities and the coastal, beach areas."
Saying the state simply cant afford the change, McCrory asked the crowd to help him make sure the sales tax bill does not pass.