Even after a recent revision, a plan to change the way North Carolina distributes sales tax revenue to local municipalities would hit some town and county budgets too hard, local leaders and chamber of commerce officials said at a news conference Tuesday.
"This is continued assault by the N.C. General Assembly," said Pat Sykes, vice chairwoman of the Brunswick County Board of Commissioners, during the conference, which was held Tuesday afternoon at the North Brunswick Chamber of Commerce in Leland.
Sykes said Brunswick County stands to lose $11 million over the next four years if the measure is signed into law. Gov. Pat McCrory has promised to veto the "Sales Tax Fairness Act" if lawmakers send the legislation his way.
The revised version takes little away from the sizable chunk it would take out of the city of Wilmingon's and New Hanover County's coffers, leaders said.
Wilmington mayor Bill Saffo said the city estimates that the 50-50 plan would cost the Port City $22.4 million over four years, a little more than $7 million less than the earlier version.
"Very little changes for the city of Wilmington, and it's a significant impact on us," Saffo said Tuesday.
A final vote is expected this afternoon after a large majority of the state Senate on Monday approved an economic development bill that includes allocating half of sales tax collections to the communities where they are spent and the other half based on population. For most areas, the current method sends all of the tax money back to the towns and cities where consumers spend it.
Jonathan Barfield, chairman of the New Hanover County Board of Commissioners, said Tuesday that the county losing anywhere from $7 million to $13 million a year as a result of the change is "just not fair and it's not right."
In New Hanover, sales tax revenue is currently distributed based on how much property tax revenue towns generate, the city's website says. "But Wilmington would still see reduced funding under this legislation because it is a regional shopping area and tourist destination," the website says.
The site also says that all municipalities in New Hanover and Brunswick counties "would see significantly reduced funding under the legislation."
The aim of the proposal, proponents say, is to boost funding to rural areas. Local opponents have argued that legislators should find a way to help rural communities that doesn't penalize counties like Brunswick and New Hanover, where tourist dollars also come with a price tag for additional infrastructure and services.