News

Henderson wins, Buncombe loses in sales tax proposal

Source: Fiscal Research Division. N.C. General Assembly.

By Bill Moss, Published: March 24, 2015

Henderson County would receive a 29.6 percent increase in sales tax revenue and Buncombe County would be among the state's bigger losers under a new sales tax distribution formula Senate leaders announced on Monday.

The redistribution of sales taxes to counties tilts the balance from urban areas to rural areas and makes other changes. It adds a 2 percent tax on food and allows counties to impose a quarter-cent sales tax by resolution instead of referendum. The proposal keeps the overall rate at 6.75 cents but shifts 1 cent of the total from local government to the state.
Polk County is an even bigger winner, seeing its sales tax total go up by 88 percent over three years. Transylvania would see a 32.3 percent rise. Buncombe County's total would drop by 11 percent, the largest loss among urban counties. Wake's take would remain almost level while Mecklenburg would see a drop of 7.4 percent.
Henderson County would receive $25.33 million by fiscal year 2018-19, a gain of $5.8 million from its current share.