Log in Subscribe

Common Questions About Proposed Half-Cent Sales Tax

Posted

The following are common questions about the proposed half-cent county sales tax with answers developed in interviews with County Judge Stacey Avey and Sheriff Brandon Long and from information provided at public meetings.

 Is this a new sales tax?
 Yes, but the half-cent being requested will replace the half-cent jail construction tax that is being discontinued upon completion of the project, and will not result in an increase in the overall rate. In fact, there will be a gap of a few months between the time the current tax ends, and when the new tax (if approved) takes effect next April.

 How much would the half-cent sales tax generate and what would it be used for?
Based on collections from the existing one-cent tax, a half-cent tax is expected to generate about $1 million per year. Proposed uses are law enforcement (including jail operation), emergency services, and roads.

Why is this tax needed?
When the half-cent jail construction tax was approved in 2020, there was a quarter-cent sales tax proposed for maintenance and operation, but that tax failed to get voter approval. The cost of staffing and operating the new jail will be much higher than for the existing jail. Plus, the budget for emergency services and roads would greatly benefit from a share of the revenue. Upkeep of tornado sirens, search-and-rescue equipment and other VFD needs are among projected uses. Avey recommends forming an advisory committee of residents to recommend how the revenue is budgeted.

How will this help roads?
Avey said increased fuel costs, along with higher costs of equipment and materials is a constant challenge. The cost of diesel has doubled since the 2026 budget was set. In the year 2000, a new road grader cost $140,000. The price is now $340,000. The cost of a pickup truck went from $10,000 to $42,000.

Increased costs are also true for residents; how will they afford the new tax?
It will not be an extra expense, because the half-cent requested would replace a tax that is being discontinued. A half-cent tax costs $5 for each $1,000 spent on taxable goods. County Sheriff Brandon Long estimates the average person spends less than $100 per year on the half-cent tax.

Why did the county build a jail if there would be no money to operate it?
When the existing jail was determined to be out of compliance with state standards (some of it related to construction methods that could not be foreseen or prevented), the county had a choice to commit to replacing the structure, paying to house prisoners in other counties (which entails transportation costs Avey estimated could run as much as $900,000 per year), or converting to a 24-hour-limit holding facility. Officials had confidence that residents would prefer that dangerous individuals be locked up, and to not pay higher costs for housing and transport.

Can’t the county find enough places to cut the budget to operate the jail?
 The county could operate the jail with existing funds, Avey said, but to the detriment of nearly all other county departments. Sanitation is the only department that is self-supporting. Having reliable equipment and being able to make any progressive improvements within the county would be a challenge without the additional revenue. The county would likely be forced to limit its services to only those required by law.

How did they decide the amount to be requested?
Avey said the county had already determined that a quarter-cent would be adequate for jail operation. Enough needs could easily be identified to take a full cent sales tax, but county officials were doubtful voters would approve a second one-cent county tax. A half-cent was a compromise that would fund jail operation and also some of the most pressing needs in roads and emergency services.

Why aren’t specific uses listed on the ballot with percentages? Won’t this simply generate a slush fund for pet projects?
Having ballot language that stipulates a certain percentage of revenue for a certain purpose limits the county’s flexibility to use the funds where they are most needed. The ballot language specifies up to three purposes, and the revenue can only go to those purposes. This is assured by annual state audits.

The county’s one-cent sales tax that has been in effect for more than 35 years is a general tax with no purpose having been stated on the ballot. However, county officials at the time pledged certain percentages would go to specific areas, and that pledge has been kept all these years. Aside from a few months recently when the road fund portion was diverted to supplement jail construction funding, the tax revenue has been divided as planned. County expenditures are always open to public review in addition to state audits.

Can’t the county get grants for extra things it needs?
Grants are not as plentiful as they once were. Some are still available, but they cannot be counted on for consistent funding. Also, some funding that the county has received for years is declining. Revenue from 911 fees added to telephone lines is declining statewide, Avey said, because the fees were on landlines and many people now are using only cell phones.

Proposed sales tax, Stone County

Comments

No comments on this item Please log in to comment by clicking here