ghoyle@heraldsun.com
May 7, 2008
CHAPEL HILL -- Orange County voters spoke loud and clear on the proposed land transfer tax referendum Tuesday -- they shot it down by an overwhelming 2 to 1 margin.
Final but unofficial results from the county's 43 precincts showed about 66 percent voted against the levy while only about 34 percent voted in favor of a 0.4-percent tax which would have been paid when a property owner sold a home, commercial property or vacant land.
The tax, which was supported by the Orange County Commissioners but vociferously opposed by organized real estate interests, had been authorized as a potential local revenue source by the state legislature three years ago. Last November it appeared on the ballot in 16 other counties and was defeated in all of them.
Kim Davis of Chapel Hill voted against the measure at Mary Scroggs Elementary School Tuesday afternoon.
"That type of tax is misleading in that the percent is so low, but when you do the math, it's a big chunk of money," she said.
The 0.4 percent transfer tax increase adds up to an additional $800 on a $200,000 home.
The voters at Scroggs, like at many other precincts, were offered fliers for and against the tax.
Yard signs from both Citizens for a Better Orange County -- a group opposed to the measure -- and Citizens for Schools and Parks -- a group in favor of the tax -- littered the grassy island in front of the school's entrance.
"I think we are already paying enough in taxes," said David Fraley of Chapel Hill. "Most people are already having a difficult time paying the bills as it is."
Barry Jacobs, chairman of the Orange County Board of Commissioners, said Tuesday's results put the county "even more than usual between a rock and a hard place."
"The next question is, rather than take it personally, what do we make of the results, and what is the next step we take?," Jacobs said. "Every month we delay costs the taxpayers of Orange County a quarter of a million dollars, and so I would hope we have something on the ballot before November."
Commissioners have the option of either bringing the land transfer tax back on the Nov. 4 ballot or substituting a quarter-cent sales tax increase.
County staff estimated that the tax would bring in approximately $3.5 million, if approved, while the sales tax would bring in about $3 million.
Commissioners have maintained that if the land transfer tax failed, the anticipated funding gap would likely be filled by increased property taxes.
The county, Jacobs said, has many costly and "unavoidable" projects to fund this year.
© 2008 by The Durham Herald Company. All rights reserved.