2-5-2021 – County renews revenue split

Posted on: February 5th, 2021 by admin

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February 5, 2021

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By GARRETT STELL GSTELL@NEWSTOPICNEWS.COM

Feb 4, 2021 Updated 13 hrs ago

 

Caldwell County is renewing an agreement with the county’s municipal governments dedicating some of the sales tax revenue that each municipality receives to economic development projects.

 

The first sales tax reinvestment agreement was approved more than 10 years ago. Caldwell County and the governments of Lenoir, Hudson, Sawmills, Gamewell and Cajah’s Mountain have renewed or extended the agreement multiple times. Granite Falls, Cajah’s Mountain and Lenoir approved extending the agreement this week, and Gamewell, Hudson and Sawmills will take up the issue over the next two weeks.

 

The newest agreement will last until 2025 and require each town to return a set amount of money from its sales tax revenues to the county: Gamewell $189,000; Sawmills $194,000; Granite Falls $27,500; Hudson $27,500; Cajah’s Mountain $155,000; and Lenoir $7,000.

 

County Finance Director Tony Helton said that there is no hard and fast formula that decides how much each municipality owes, but it is based on the revenue each municipality receives compared to what it generates.

 

The county distributes sales tax revenue based on population rather than based on the property tax the municipalities assess. For example, Gamewell received $91,625 in November based on its share of the total population in the county. But because Gamewell does not charge a property tax, it would get nothing under the other method.

 

At the same time, larger municipalities with property taxes such as Lenoir would get a much higher proportion of the countywide sales tax revenue than they do when population is the basis for the revenue split, so they are not asked to pay as much into the reinvestment fund, Helton said.

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