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Uh
resolution um regarding the additional

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1/2 cent for local sales tax.
This time I'm going to turn it over to

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my gentleman on the right. I think we're
going to start with you, sir.

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It's on you.
>> All right. Good evening, commissioners.

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Good evening, ladies and gentlemen. Uh
I'm Kyle Kimble, the county attorney.

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I'm just going to provide a brief uh
background and kind of legal authority

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of how we get to the resolution for what
we're uh proposing tonight. Um

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in the 2026 [clears throat]
Appropriations Act that was passed in

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July by the General Assembly and the
governor,

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um it created a new four to four Article
43 alpha of

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Chapter 105. Chapter 105 is taxation.
So, North Carolina General Statute

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Chapter 105. Um 43 alpha is county sales
and use tax for public education. And

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this was created specifically for and
only for Sampson County based on this

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year's Appropriations Act. Other
counties may get it in the future, but

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for this year it's Sampson County alone.
Uh

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it's specifically Chapter 105 Section
513.1 through .4.

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Um it allows
uh the opportunity to obtain additional

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source of revenue for which to meet
public education needs. So, again, I'll

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talk about that in a second, but it's
it's directly going to public education.

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Uh
513.2 [clears throat]

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talks about the levy. So, the only way
to get there is via a referendum. So,

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what the vote on tonight is really
dealing with the resolution to do a

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referendum for this November.
Um the Board of Commissioners may direct

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the County Board of Elections to conduct
an advisory referendum on the question

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whether or not to levy a local sales and
use tax up to a rate of 1/2%.

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So,
the the applicable rate that can be

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approved via this is a one is in the
increments of 1/4%. So, essentially what

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that means is the county board can
approve a 1/4%

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uh increase
or 1/2 % increase up to 1/2 being

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maximum. Um so, that's what the
uh you know, decision point is tonight

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is to what level to go for it and and I
know the resolution does have a 1/2 %

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currently. Um we did confirm that with
via the Department of Revenue from the

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state. The state actually contacted us
right after the Appropriations Act was

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passed about this very uh new article
and the levy of this new sales and use

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tax.
Um they did confirm that yes, 1/2 is the

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maximum and you can go directly to 1/2.
Senator Jackson's office confirmed that

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as well as the actual lawyer who drafted
this uh very provision via the article

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uh 43 that we we we conferred with. Uh
the article provides for a specific

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ballot question, which the uh Board of
Elections will uh put forth if approved.

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And the authority is then uh once it if
approved via the vote in the

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it'll then come back to the Board of
Commissioners, who by resolution can

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then authorize the levy of a tax.
If approved via the referendum, um

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the most likely start date for this
would be, according to the Department of

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Revenue, July of 2027 would be the
earliest, essentially. So, if approved

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via this election, July 1st, 2027, the
levy would start, right? So, levy would

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start on the on sales and use tax for
the county. Um

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uses. So, 5-13.4 discusses the actual
uses that that will come from this tax

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money. So, it can be used for two main
purposes, public school capital outlay

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purposes that are specifically defined
in general statute that defined in

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general statute 115 C 426 F or to retire
any indent indebtedness incurred by the

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county for the same purpose. So, capital
outlay, just think of it as is your big

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projects, right? Land acquisition for
schools, playgrounds, athletic fields,

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etc. Construction, renovation,
replacement of buildings and structures,

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furnitures, fixtures and furnitures for
the schools. Um it can be also for

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acquisition of school buses as fleet,
acquisition of activity buses supporting

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the education side, public education.
The number two there under use is public

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school operating expenses.
Um so, it's really capital outlay

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for new projects, existing projects,
existing existing debt from buildings

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already purchased, renovations already
made, or that public school operating

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expenses. Um and so, that's kind of the
background on the brand new article that

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was uh
uh

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put forth via the general assembly and
the governor. And I'll turn it over to

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Mr. Vann for the more
>> Thank you, sir. And

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um
Mr. Chairman and Commissioners, I have

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just a couple of other points, and a
couple of these may be redundant with

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the resolution itself, but I think these
are helpful uh to mention.

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The additional 1/2% sales tax would
generate approximately $4 million in

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annual revenue. And um
one way this could be thought about is

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it would be equivalent to 5 and 1/2
cents. If that amount of money were

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needed to be generated, it would take 5
and 1/2 cents

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um added to the property tax levy rate.
Uh we currently have about $104 million

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in debt for prior school buildings
construction.

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Um if this additional sales tax were
passed,

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this means the overall rate in Sampson
County would go from 7% to 7 and 1/2%

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sales tax.
The sales tax applies to anyone

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purchasing goods and services in the
county, not just home or property owners

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in Sampson.
And um

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of course, Kyle mentioned the other
points as well. So, um we just

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appreciate uh the consideration for
these board members uh

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as far as moving forward.

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» All right.

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At this time I'm going to read the
resolution of the Sampson County Board

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of Commissioners directing the County
Board of Election to conduct a

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referendum with referendum
whether to levy an additional 1/2%

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county sales and use tax to prioritize
payment of existing K-12 public school

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indebtedness.
Whereas the Sampson County Board of

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Commissioners recognizes that the
Sampson County student population

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represents the future of our great
county, state, and country.

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And therefore every incentive must be
taken to support maintaining safe and

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structurally sound environment that
fosters student success. And whereas the

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Sampson County Board of Commissioners
recognize that service responsibilities

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and demands associated with the county's
continuing growth have increased at a

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rate that is outpacing the county's
revenue. And whereas the Sampson County

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Board of Commissioners recognizes that
the

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county's current school debt services to
be exclusive of 1 million that is

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primarily being paid for by property tax
revenue. And whereas the state of North

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Carolina General Assembly and Governor
passed the 2026 Appropriations Act

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creating
a new Article 43A

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with the NC Chapter 105
that specifically grants Sampson County

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an opportunity to obtain additional
revenue via a local sales and use tax

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increase to support public education
needs. And whereas in light of the new

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statutory authority the Sampson County
Board of Commissioners unanimously favor

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a 1/2
% local sales tax and use options as

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opposed to depending solely on property
taxes as a source of revenue of meeting

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K through 12 public schools debt
service. And whereas the

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acceptable revenues generated by 1/2
% local sales and use tax is approx-

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approximately $4 million annually,
which would equivalent to 5 and 1/2

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cents if added to the property tax
levy rate. And whereas the Sampson

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County Board of Commissioners are
unanimous in favor of prioritizing any

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additional revenues gained by a 1/2%
sales tax and use tax increase

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to service existing school debt
previously incurred for constructional

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projects. And now, therefore, be it
resolved the Sampson County Board of

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Commissioners
directs the Sampson County Board of

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Elections to conduct a referendum
in the upcoming November the 3rd, 2026

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election on whether the county
should levy an additional 1/2% local

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sales and use tax to be utilized and for
the primary purpose of existing school

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indebtedness
for the public schools buildings in

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ordinances with NCGS
105-513.3.

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That the Sampson County Board of
Commissioners directs the Sampson County

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Board of of Elections to formulate a
ballot question

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for the referendum utilization utilizing
the language provided in NCGS 105-513.2.

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That Sampson County Board of
Commissioners directs the Sampson County

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Manager
to educate and inform the public

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regardless regarding all aspects of this
resolution and the upcoming special

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election on this matter.
Adopted this day of August 2026, 3rd day

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of August. C. O. Ammons, Chairman.

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» Mr. Chairman, I'd just like to take a
moment to

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inform the public that this would not be
possible if it were not for Senator

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Brent Jackson
uh in his work at uh at the General

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Assembly
getting this approved for Sampson

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County. Uh
the other year when we had the

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financial issues uh where we did have to
adjust the tax rate to 68 cent from 62

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and 1/2 cent.
Most of the people who commented on

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social media or in private would often
say they would rather see a sales tax

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increase than a property tax increase.
Well, that wasn't an option we had then.

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Uh this is now an option thanks to
Senator Jackson. The county's needs are

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always
going to be there. They're not going to

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go away and the the needs of the schools
are not going to go away.

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So, uh I want to thank Senator Jackson
for his work in getting this option

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available to us, but it cannot be it
will not be possible without the support

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of the voters of Sampson County. So, uh
Mr. Chairman, I just encourage

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uh us that we put this forward before
the voters of Sampson County and that

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all five of us do our due diligence in
educating and encouraging our

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constituents to support the resolution
because this half a cent just think

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about it. A half a cent. If you spend a
dollar,

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that's just a half a penny.
For every $100 you spend, that would be

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50 cent.
Our children are worth 50 cent. Our

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children are worth a half a penny. So, I
would encourage you to encourage your

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neighbors that this is a item worthy of
our support. Uh Mr. Chairman, I make a

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motion that we adopt the resolution.
>> Second.

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» The motion has a second. All in favor?

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Resolution is approved.