Increased sales tax could pay for New Hanover County Roads

By Patrick Gannon,
Staff Writer

An additional one-quarter-percent sales tax is on the table as a way to pay for much-needed road projects in New Hanover County.

Wilmington City Councilman Jason Thompson prodded New Hanover County leaders Thursday to hold a countywide vote this year on the new tax. Bill Caster, vice chairman of the New Hanover County commissioners, said he would ask county administrators to begin planning a referendum, most likely for the November ballot. It is unlikely a referendum could be planned in time for the May 6 primary ballot.

It was also unclear Thursday evening whether a majority of commissioners would agree to a referendum.

The proposal would raise New Hanover County's sales tax level from 6.75 percent to 7 percent.

A quarter-cent tax would generate roughly $7 million a year and could pay to expedite projects such as the extensions of Military Cutoff Road and Independence Boulevard and the widening of Dow Road , transportation officials said.

"We recognize the need for alternative and additional funding sources to complete some of these important transportation projects," said Mike Kozlosky, senior transportation planner with the Wilmington Metropolitan Planning Organization, which sets transportation priorities for the region.

Voters said they wanted new parks, Thompson said, and responded by approving a countywide bond referendum for parks and recreation projects in 2006.

Now they say they want better roads and should have a chance to vote on a funding source, he said.

"If the people vote it down, the people don't have anybody to blame but themselves," said Thompson, who is running for one of three open seats on the board of commissioners.

But Bobby Greer, commissioners chairman, who was out of the state Thursday and informed about the proposal by a reporter, expressed reservations about a referendum this year.

The county has enough obligations without taking on road projects historically handled by the N.C. Department of Transportation, he said.

"It's a state responsibility," he said. "Let them figure it out."

Thompson's proposal came at a meeting of the General Assembly's 21st Century Transportation Committee, which met in Wilmington on Thursday to continue to develop recommendations for new ways to fund transportation-related projects statewide.

Commissioner Bill Kopp said he generally supports an additional sales tax as a revenue source.

New Hanover County is the retail hub of the region, as well as a tourist destination, so many visitors would contribute as well.

"It spreads it out over everybody and doesn't hit anybody harder than the other," he said.

But Kopp said he preferred to wait until the transportation committee makes funding recommendations to the General Assembly before obligating the county to a referendum.

There should still be time after that to put a referendum on the ballot in 2008, he said.

A number of counties tried to enact land-transfer taxes and quarter-cent sales taxes last year. While the land-transfer tax failed in all 16 counties that considered it, the additional sales tax passed in five of 16 counties.

Meanwhile, the 21st Century Transportation Committee proposed legislation Thursday to create a congestion relief fund to improve public transportation and freight and passenger rail service across North Carolina .

The fund, as proposed, would be supported by $160 million in not-yet-identified funds each year for 12 years to parcel out in the form of grants to cities, counties and regional transportation authorities.

Grants could also be made directly to the N.C. State Ports Authority or to railroad companies for rail improvements. Grants to the ports couldn't exceed $10 million a year, according to the draft legislation.

Patrick Gannon: 343-2328

patrick.gannon@starnewsonline.com