Don’t let word ‘tax’ spook you just yet
What’s scarier than a Halloween costume? Probably, for many people, the word “tax.” Let’s face it. Most of us associate that word with another word: increase. And that generally stirs up unpleasant thoughts and the utterance of unpleasantries.
Several Lakelands counties are poised to roll out a tax, only this one is a penny sales tax with a specific purpose. Labeled a capital sales tax, the 1 percent additional revenue it generates not only has a specific purpose — generally some sort of building project to meet an identified need — it also has a specific lifespan and revenue cap. A county will outline in great detail that it intends to raise X amount of dollars within Y number of years to go toward the construction of XYZ Project. If the money needed is not raised within the specified timeframe, the sales tax still rolls off the books by the designated sunset date. That said, counties typically do a good job of calculating the number of years a tax needs to remain on the books in order to collect the dollars needed to fund a project, and it’s not at all unusual for a tax to roll off the books ahead of schedule.
All of this is said to say that while a capital sales tax is indeed a tax, it is one of the best and most fair mechanisms counties can use in order to raise funds for needed projects. While there will no doubt be argument regarding the need for projects, capital projects are always put before the voters who will make the final decision as to the project’s merits. In Greenwood, for example, few might have argued against a penny sales tax to pay for reinforcing the Buzzard Roost Dam as directed by the federal government through the Federal Energy Regulatory Commission. More were vocal, however, when County Council tacked on the construction of a new library. Still, they were given the opportunity to support or fight the project in the voting booth.
So in that sense alone, the penny sales tax is fair. It is one of the best mechanisms for raising needed revenue in that the cost is shared, and shared widely. Using the Greenwood example, the dollars raised to reinstate the dam and build the library came not only from the pockets of county residents, but also from the pockets of those who come to Greenwood and spend their money. Shoppers from neighboring counties, tourists and short-term visitors alike contributed to the county’s projects.
Greenwood County residents will be given a chance to vote on a new project next November. What the project will be has yet to be determined, but focus groups have already discussed a number of options and are trying to identify needs in order of priority. Still, the ultimate decision will rest with the voters. McCormick and Abbeville counties are also considering the penny tax as a means of funding projects. How they go about it, and how they ultimately present their arguments to the voters will be key because a majority of voters will have to be convinced the project has merit.
At the end of the day, however, residents ought not get too spooked too soon just because the word “tax” is being invoked by their county councils.
Originally Published by Index-Journal on:Oct 13, 2015
