Voters can raise sales tax, lower property taxes

It might be the best kept secret on next Tuesday's ballot.

Although a random sampling of some business owners revealed a lack of knowledge concerning one of the ballot's local questions, the proposed 1-cent local option sales tax could save property owners quite a chunk of change.

Cherokee County Councilman Rufus Foster proposed the sales tax as a way to spread the tax burden more evenly.

"A lot of people are renting and getting to enjoy the county services for free," Foster said. "This way it would spread it out some."

If approved by voters, 71 percent of the money generated by the sales tax would go to reduce the county's portion of the homeowners' property taxes. The remaining money would be earmarked for capital expenditures.

According to Foster, that would translate into a $156 savings for a city resident who owns a $100,000 home. A Blacksburg resident who lives in a like-valued home would save $71 on his property taxes, while a county resident who owns a $100,000 home would realize a savings of $81, Foster said.

Vehicle taxes would decrease, too, under the sales tax proposal. A Gaffney resident who drives a $20,000 vehicle would save $31 in property taxes. A Blacksburg resident who owns a car valued at $20,000 would enjoy a $14 reduction in car taxes, while county residents who drive a similarly-valued car would pay $16 less in vehicle property taxes.

But that savings would be offset with a higher sales tax.

The sales tax in the county would rise to 8 percent, including a 6 percent sales tax imposed by the state and a 1- cent sales tax to pay for a school building program if the local question passes.

The ballot question reads: "Must a one percent sales and use tax be levied in Cherokee County for the purpose of allowing a credit against a taxpayer's county and municipal ad valorem tax liability and for the purpose of funding county and municipal operations in the Cherokee County Area?"

Two years ago, a similar measure didn't meet the deadline to appear on the ballot.

Foster said he was surprised many people seem to be unaware of the proposal since it's been the focus of advertisements in the local media.

Gene Moorhead, executive director of the Cherokee County Chamber of Commerce, had some knowledge of the local option sales tax proposal, but said his organization had no position on the issue.

But he, personally, is in favor of the proposal.

"In view of the economy, tax revenue is down and it has to come from either cutting services or increasing revenues," Moorhead said.

Copies of the local questions and amendments will be distributed at the polling places so voters can familiarize themselves with them before they vote, Cherokee County Election Commission Chairman Suzanne Turner said.