Orange County considers half-cent sales tax increase

Weeks after Orange County residents approved a quarter-cent sales tax increase, the Orange County Board of Commissioners is looking into a new half-cent tax.

The sales tax would require a referendum vote and would help fund new alternative transit options that could include a light rail system between Durham, Wake and Orange Counties and expanded bus routes.

Durham County voters supported a half-cent sales tax increase in the Nov. 8 elections and now await similar initiatives in the other counties.

But such an increase could encounter rural opposition in Orange County.

In November’s quarter-cent vote, most opposition in the county came from rural precincts. The same was true in 2010, when the sales tax was defeated.

And many rural residents are upset that the referendum was placed on the ballot in a non-primary election when most rural areas didn’t hold municipal elections.

Places like Chapel Hill saw more voters because of council and mayoral elections, possibly skewing the vote, they say.

Bonnie Hauser, president of Orange County Voice and a Hillsborough resident, said the vote was a political maneuver and was unfair to rural residents.

“The politics were divisive,” she said. “We aren’t just against a tax increase, but instead we are against the process the board used.”

But Barry Jacobs, a county commissioner, said the vote was held because the increase was needed.

“We needed to act quickly because the state has allotted less money for the county and we needed to maintain our programs,” he said.

But some who feel rural residents were treated unfairly in the last vote worry the half-cent tax will cause even more problems.

Bob Randall, chairman of the Orange County Republican Party, stated in a press release that Carrboro Mayor Mark Chilton’s recent request to place the transit tax on the May 2012 rather than November 2012 ballot is meant to pass the measure.

“It is clearly evident that they choose to place these items on the ballot when they know voter turnout is likely to be low and they can control the vote,” Randall said.

And Kenneth Johnson, a Hillsborough resident, said the taxes will discourage spending.

“All of these taxes burden our local economy,” he said.

Steve Yuhasz, vice chairman of the board, said commissioners are discussing the plans to make sure they benefit Orange County residents and warrant the increase.

“Right now, I’m not sure the proposed light rail system will have enough overall benefit to all county residents,” he said. “It will benefit Durham County residents more than Orange County, but everyone will pay the tax.”

Yuhasz said Orange County should emphasize expanded bus options to have the most short-term impact.

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