An open letter to local developers and realtors

As realtors, developers and appraisers, you all have an incredible impact on the quality our homes and the nature of our county’s political discussion.

As a group, you all represent some of the most forward thinking self-starters in this area. You have created your own businesses and are directly responsible for the quality of your business activity.

That is why I pray that you will indulge me for five minutes to consider why you should at least stop and think about voting no to the local sales tax increase.

We all want the best for our children, and our nieces and nephews too. Great schools are important, even critical to the well being of a community. But the fact is that our county leaders have significant options to finance the school’s construction needs. They just fail to exercise those options, instead defaulting to the easy button by raising taxes.

The sales tax referendum represents a 3.7 percent tax increase. The local option to increase sales tax is only available because the state is taking the burden away from county government for Medicaid funding, thus also reducing some payments from the state to the county. However, counties will see a net increase in their available revenue from the state due to the “Medicaid swap” as it is being called. Mike Apple has calculated the net increase to Rockingham County at approximately $900k-1.2 million annual over the next few years.

So the fact remains that the county does have options other than increasing taxes to meet local needs.

The county has more than $22 million in discretionary spending in its current budget. More than $15 million already goes to the school system. Setting aside the school funds, leaves $7 million of available money for the county to chose how to spend.

Are there really “no choices other than to raise taxes”?

Lastly, Rockingham County already loses 35 percent of its sales tax revenue because of limited local economic activity. If our economic activity met just the state minimum average for a county our size we would see an additional $5 million in revenue to the county.

Again, we all want great schools and the best for the future. There are those who believe limited government allows individuals to keep more of their money and spend it with private local businesses.

I ask that you consider these perspectives and others available at our website, stopthehike.wordpress.com

As leaders in the community, I would challenge you not to abdicate the responsibility you have to demand effective government from elected officials.

Thanks for your time.

Jeff

p.s. Current projections from county staff also show the property tax rate floating to the mid 70 cent range, with a revaluation, in the next 5 years. I have these documents and would be more than happy to share them with any of you on request.

Two arguments against higher sales tax in RockCo

Apparently this mindset is working its way around Rockingham County, as reported by a young woman regarding one of the current candidates for county commissioner:

“(he said he) is for the raise in taxes because it is sales or estate taxes that will be raised, and “at least the influx of Hispanics will have to pay sales tax, after all they have to eat and shop too”  He intimated that, ‘Those who have lived here and established and owned property will be hit fairly and not disproportionately’.  “

So we kicked around some good ways to counter such an argument and this is what we came up with:

Our first argument:

People are making the wrong premises and asking the wrong questions.  The premise is that there needs to be more money raised through more taxes.  Reducing spending and limiting government is not an option that many people seem to be able, or willing, to consider.  If there is a problem, more government is the avenue to solve it, they think.  So the question becomes, what method is best to raise taxes?  Once they are at that point, then the higher sales tax is deemed better than higher property tax.  Ultimately, they get both… but they can always argue the property tax could be even higher.
 
Virtually all Democrats, and an increasing number of Republicans, have forgotten the principles of limited government. 
 
A government dominated society that has tried to cure its problems through more government has never been able to tax and spend itself into prosperity and liberty. But, we keep trying.

Our second argument:

The point is that no tax increase is needed at all and anyone that makes excuses for why to tax is missing that point. We must do two things, 1)promote buying in Rockingham County to increase our sales tax revenue without raising taxes and 2) cut the county budget because it has room for cutting. By promoting any kind of a new tax (the candidate) is buying into the idea that there are no other ways to develop revenue and save money.  If we keep raising sales taxes more businesses will chose to not locate in this county.

Vote NO to Local Sales and Use Tax on May 6.

Remember, it’s your money. Are you really under taxed?

Rockingham County Commissioners need to hear from you

Rockingham County Commissioners postponed Monday night their approval of a pamphlet aimed at promoting the May 6 sales tax increase. Because the staff’s recommended pamphlet went too far in advocating for the sales tax, County Manager Tom Robinson said they would “take some of it out” and resubmit the pamphlet at the next board meeting at 6:30 pm on Monday March 31.

Plesase take action!

Call or email Amelia Dallas (623. 8481), Harold Bass (939. 2841) and Bobby Stanley (573. 9261) and let them know you oppose tax payer money being spent on a pamphlet promoting the May 6 sales tax increase. To date, the county has failed to provide an estimate on how much staff time and public money will be spent on producing and mailing this pamphlet at your expense.

Help us stop this waste of tax dollars!

Come to the meeting at 6:30 p.m. on March 31 at the Governmental Center in Wentworth. Speak to them in person and express your opposition to the sales tax hike.

Sincerely,

Jeffrey Sykes

Overtaxed Rockingham County Resident

Organizer of Citizens for a Better Economy in Rockingham County

VOTE NO ON MAY 6 TO THE HIGHER SALES TAX!

Ten reasons to oppose the sales tax increase:

It’s bad for education to tie school funding to this new tax.

It’s bad for lower income people especially, because they pay a higher percentage of their income in sales tax.

It’s bad for economic development and jobs.

It’s bad for attracting retail stores to our area.  Don’t give people another reason to shop outside our county!

It’s bad fiscal policy – government needs to reduce its spending instead. High taxes cripple our economy.

The current sales tax:  Virginia 5%, NC 6.75%.

Don’t raise our tax even more.

Don’t think this will result in less property tax.

The commissioners already voted against lowering property taxes if the higher sales tax is enacted.

The estimated money from this tax is a tiny “drop in the bucket” to pay for proposed new projects.

‘A government big enough to give you everything you want, is big enough to take away everything you have.’ Thomas Jefferson

Four reasons to oppose the sales tax increase on May 6

The proponents of the tax have already started pushing that the extra quarter-cent sales tax is only 25 cents for every $100 spent.

They usually use a similar ploy regarding marginal property tax increases, and it’s effective.

But what about the effect of the sales tax increase on businesses and the county as a whole?

Proponents say it will raise $1.8 million a year

That is $1.8 million taken every year out of local citizen’s pockets and into government’s. That is $18 million over a ten-year period.

We want people to spend their money in our county

Local businesses, particularly that sell higher priced items, already complain of a real disadvantage because sales tax is so much lower in Virginia.  We need to be recruiting more retailers into our county so people will spend their money here.  Higher sales taxes are a disincentive for those retail businesses.

The overall tax burden in our county is already very high

Neighboring Virginia has lower personal income tax, corporate tax, sales tax, gas tax, and in general, property tax.  Neighboring North Carolina counties have lower property tax.  Our state has the highest tax burden in the Southeast region from Texas to Virginia.  People want local government to recruit businesses to come here and bring jobs.  Like it or not, businesses and jobs, whenever possible, will locate in areas where their overhead costs, including taxes, are lesser rather than greater.  This is devastating to the county’s tax base and ability to pay for services.

The proponents already have a list of capital improvements and services that exceed $80 million

Keep in mind the tax will only raise $1.8 million a year.  And, that is gross.  Consider the effect of sales tax revenues we are already losing every year, because people choose to do their buying outside the county.  A higher sales tax will only make this problem potentially worse.

VOTE NO ON “COUNTY SALES AND USE TAX” ON THE BACK OF THE BALLOT MAY 6

Just say no to Amelia and Bobby

Amelia Dallas in the Greensboro News and Record:

*”We’re just hoping to work out some other ideas and thoughts and ways of revenues that can get us through,” Dallas said late Wednesday afternoon. She said if voters approve the quarter-cent sales tax in May, it would help the coming year’s budget.*

What about the next year and the year after that?

Bobby Stanley follows the leader:

*Commissioner Bobby Stanley said it’s time to “step up to the plate and do the right thing here.” Stanley said all the projects are in the best interest of the county.

A quarter-cent sales tax could generate $1.6 million a year, said Mike Apple, county finance director.*

The right thing is to start cutting away at the $22 million in optional spending that is sucking critical money that could be used for schools.