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Letter: Sales tax reliance may be poor policy

Sunday, September 30, 2007

My fellow citizens, before voting for the proposed sales tax increase, consider the following.

The projected annual revenue of $5 million the sales tax could generate is based on previous year sales revenues. Future sales tax revenues are tied to the future economy. No guarantee there.

Once the county incurs a debt, payments have to be made. If the sales tax revenues are not sufficient, then property tax revenues will have to be used to retire the debt.

Property owners face the possibility of sales and property tax increases.

Landlords customarily pass the cost of doing business to tenants. Tenants could be faced with rent increases. Property owners could be faced with liens or foreclosures. It all depends on how the economy goes in the next 20 years while we are committed to these debt payments.

This year, the county raised property taxes one cent per $100 valuation. Next year, due to revaluation, the property value across the board is projected to increase 10-12 percent. Your property tax payment will increase accordingly. Greenville residents will face a double whammy. What will the projected increase in revenue be?

Is this sales tax increase necessary? The lottery revenues continue to increase. The county no longer has to reimburse the state for Medicaid. What is the projected revenue increase here?

Food purchased at a supermarket is the only food exempt from the sales tax.

Is the sky falling again? The last time such a rumor started, the county hospital was transferred for $30 million.

Are we alleviating a problem or opening a new can of worms with the sales tax increase?

Based on their track record, can we trust our elected officials to make sound fiscal decisions as to how much to borrow with the additional revenue? You decide.

NANCY COLVILLE

Greenville

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