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[0:01]
Uh
resolution um regarding the additional
[0:05]
1/2 cent for local sales tax.
This time I'm going to turn it over to
[0:09]
my gentleman on the right. I think we're
going to start with you, sir.
[0:13]
It's on you.
>> All right. Good evening, commissioners.
[0:15]
Good evening, ladies and gentlemen. Uh
I'm Kyle Kimble, the county attorney.
[0:18]
I'm just going to provide a brief uh
background and kind of legal authority
[0:23]
of how we get to the resolution for what
we're uh proposing tonight. Um
[0:29]
in the 2026 [clears throat]
Appropriations Act that was passed in
[0:32]
July by the General Assembly and the
governor,
[0:34]
um it created a new four to four Article
43 alpha of
[0:40]
Chapter 105. Chapter 105 is taxation.
So, North Carolina General Statute
[0:44]
Chapter 105. Um 43 alpha is county sales
and use tax for public education. And
[0:51]
this was created specifically for and
only for Sampson County based on this
[0:55]
year's Appropriations Act. Other
counties may get it in the future, but
[0:59]
for this year it's Sampson County alone.
Uh
[1:01]
it's specifically Chapter 105 Section
513.1 through .4.
[1:07]
Um it allows
uh the opportunity to obtain additional
[1:11]
source of revenue for which to meet
public education needs. So, again, I'll
[1:15]
talk about that in a second, but it's
it's directly going to public education.
[1:19]
Uh
513.2 [clears throat]
[1:21]
talks about the levy. So, the only way
to get there is via a referendum. So,
[1:26]
what the vote on tonight is really
dealing with the resolution to do a
[1:29]
referendum for this November.
Um the Board of Commissioners may direct
[1:34]
the County Board of Elections to conduct
an advisory referendum on the question
[1:38]
whether or not to levy a local sales and
use tax up to a rate of 1/2%.
[1:44]
So,
the the applicable rate that can be
[1:47]
approved via this is a one is in the
increments of 1/4%. So, essentially what
[1:53]
that means is the county board can
approve a 1/4%
[1:57]
uh increase
or 1/2 % increase up to 1/2 being
[2:01]
maximum. Um so, that's what the
uh you know, decision point is tonight
[2:06]
is to what level to go for it and and I
know the resolution does have a 1/2 %
[2:10]
currently. Um we did confirm that with
via the Department of Revenue from the
[2:15]
state. The state actually contacted us
right after the Appropriations Act was
[2:19]
passed about this very uh new article
and the levy of this new sales and use
[2:25]
tax.
Um they did confirm that yes, 1/2 is the
[2:28]
maximum and you can go directly to 1/2.
Senator Jackson's office confirmed that
[2:32]
as well as the actual lawyer who drafted
this uh very provision via the article
[2:38]
uh 43 that we we we conferred with. Uh
the article provides for a specific
[2:44]
ballot question, which the uh Board of
Elections will uh put forth if approved.
[2:49]
And the authority is then uh once it if
approved via the vote in the
[2:55]
it'll then come back to the Board of
Commissioners, who by resolution can
[2:59]
then authorize the levy of a tax.
If approved via the referendum, um
[3:05]
the most likely start date for this
would be, according to the Department of
[3:09]
Revenue, July of 2027 would be the
earliest, essentially. So, if approved
[3:15]
via this election, July 1st, 2027, the
levy would start, right? So, levy would
[3:21]
start on the on sales and use tax for
the county. Um
[3:25]
uses. So, 5-13.4 discusses the actual
uses that that will come from this tax
[3:32]
money. So, it can be used for two main
purposes, public school capital outlay
[3:38]
purposes that are specifically defined
in general statute that defined in
[3:42]
general statute 115 C 426 F or to retire
any indent indebtedness incurred by the
[3:50]
county for the same purpose. So, capital
outlay, just think of it as is your big
[3:54]
projects, right? Land acquisition for
schools, playgrounds, athletic fields,
[3:58]
etc. Construction, renovation,
replacement of buildings and structures,
[4:03]
furnitures, fixtures and furnitures for
the schools. Um it can be also for
[4:10]
acquisition of school buses as fleet,
acquisition of activity buses supporting
[4:14]
the education side, public education.
The number two there under use is public
[4:19]
school operating expenses.
Um so, it's really capital outlay
[4:25]
for new projects, existing projects,
existing existing debt from buildings
[4:29]
already purchased, renovations already
made, or that public school operating
[4:33]
expenses. Um and so, that's kind of the
background on the brand new article that
[4:37]
was uh
uh
[4:39]
put forth via the general assembly and
the governor. And I'll turn it over to
[4:42]
Mr. Vann for the more
>> Thank you, sir. And
[4:45]
um
Mr. Chairman and Commissioners, I have
[4:47]
just a couple of other points, and a
couple of these may be redundant with
[4:51]
the resolution itself, but I think these
are helpful uh to mention.
[4:55]
The additional 1/2% sales tax would
generate approximately $4 million in
[5:00]
annual revenue. And um
one way this could be thought about is
[5:05]
it would be equivalent to 5 and 1/2
cents. If that amount of money were
[5:10]
needed to be generated, it would take 5
and 1/2 cents
[5:13]
um added to the property tax levy rate.
Uh we currently have about $104 million
[5:20]
in debt for prior school buildings
construction.
[5:24]
Um if this additional sales tax were
passed,
[5:27]
this means the overall rate in Sampson
County would go from 7% to 7 and 1/2%
[5:34]
sales tax.
The sales tax applies to anyone
[5:38]
purchasing goods and services in the
county, not just home or property owners
[5:42]
in Sampson.
And um
[5:46]
of course, Kyle mentioned the other
points as well. So, um we just
[5:50]
appreciate uh the consideration for
these board members uh
[5:54]
as far as moving forward.
[5:58]
» All right.
[6:00]
At this time I'm going to read the
resolution of the Sampson County Board
[6:04]
of Commissioners directing the County
Board of Election to conduct a
[6:07]
referendum with referendum
whether to levy an additional 1/2%
[6:13]
county sales and use tax to prioritize
payment of existing K-12 public school
[6:20]
indebtedness.
Whereas the Sampson County Board of
[6:22]
Commissioners recognizes that the
Sampson County student population
[6:26]
represents the future of our great
county, state, and country.
[6:31]
And therefore every incentive must be
taken to support maintaining safe and
[6:36]
structurally sound environment that
fosters student success. And whereas the
[6:41]
Sampson County Board of Commissioners
recognize that service responsibilities
[6:44]
and demands associated with the county's
continuing growth have increased at a
[6:49]
rate that is outpacing the county's
revenue. And whereas the Sampson County
[6:54]
Board of Commissioners recognizes that
the
[6:57]
county's current school debt services to
be exclusive of 1 million that is
[7:02]
primarily being paid for by property tax
revenue. And whereas the state of North
[7:07]
Carolina General Assembly and Governor
passed the 2026 Appropriations Act
[7:12]
creating
a new Article 43A
[7:16]
with the NC Chapter 105
that specifically grants Sampson County
[7:20]
an opportunity to obtain additional
revenue via a local sales and use tax
[7:26]
increase to support public education
needs. And whereas in light of the new
[7:31]
statutory authority the Sampson County
Board of Commissioners unanimously favor
[7:35]
a 1/2
% local sales tax and use options as
[7:40]
opposed to depending solely on property
taxes as a source of revenue of meeting
[7:46]
K through 12 public schools debt
service. And whereas the
[7:51]
acceptable revenues generated by 1/2
% local sales and use tax is approx-
[7:58]
approximately $4 million annually,
which would equivalent to 5 and 1/2
[8:03]
cents if added to the property tax
levy rate. And whereas the Sampson
[8:09]
County Board of Commissioners are
unanimous in favor of prioritizing any
[8:13]
additional revenues gained by a 1/2%
sales tax and use tax increase
[8:19]
to service existing school debt
previously incurred for constructional
[8:24]
projects. And now, therefore, be it
resolved the Sampson County Board of
[8:29]
Commissioners
directs the Sampson County Board of
[8:32]
Elections to conduct a referendum
in the upcoming November the 3rd, 2026
[8:37]
election on whether the county
should levy an additional 1/2% local
[8:43]
sales and use tax to be utilized and for
the primary purpose of existing school
[8:49]
indebtedness
for the public schools buildings in
[8:52]
ordinances with NCGS
105-513.3.
[8:59]
That the Sampson County Board of
Commissioners directs the Sampson County
[9:02]
Board of of Elections to formulate a
ballot question
[9:06]
for the referendum utilization utilizing
the language provided in NCGS 105-513.2.
[9:15]
That Sampson County Board of
Commissioners directs the Sampson County
[9:18]
Manager
to educate and inform the public
[9:22]
regardless regarding all aspects of this
resolution and the upcoming special
[9:26]
election on this matter.
Adopted this day of August 2026, 3rd day
[9:31]
of August. C. O. Ammons, Chairman.
[9:37]
» Mr. Chairman, I'd just like to take a
moment to
[9:40]
inform the public that this would not be
possible if it were not for Senator
[9:45]
Brent Jackson
uh in his work at uh at the General
[9:49]
Assembly
getting this approved for Sampson
[9:52]
County. Uh
the other year when we had the
[9:56]
financial issues uh where we did have to
adjust the tax rate to 68 cent from 62
[10:02]
and 1/2 cent.
Most of the people who commented on
[10:06]
social media or in private would often
say they would rather see a sales tax
[10:11]
increase than a property tax increase.
Well, that wasn't an option we had then.
[10:17]
Uh this is now an option thanks to
Senator Jackson. The county's needs are
[10:22]
always
going to be there. They're not going to
[10:25]
go away and the the needs of the schools
are not going to go away.
[10:29]
So, uh I want to thank Senator Jackson
for his work in getting this option
[10:34]
available to us, but it cannot be it
will not be possible without the support
[10:39]
of the voters of Sampson County. So, uh
Mr. Chairman, I just encourage
[10:45]
uh us that we put this forward before
the voters of Sampson County and that
[10:49]
all five of us do our due diligence in
educating and encouraging our
[10:54]
constituents to support the resolution
because this half a cent just think
[11:01]
about it. A half a cent. If you spend a
dollar,
[11:04]
that's just a half a penny.
For every $100 you spend, that would be
[11:10]
50 cent.
Our children are worth 50 cent. Our
[11:15]
children are worth a half a penny. So, I
would encourage you to encourage your
[11:20]
neighbors that this is a item worthy of
our support. Uh Mr. Chairman, I make a
[11:26]
motion that we adopt the resolution.
>> Second.
[11:30]
» The motion has a second. All in favor?
[11:35]
Resolution is approved.