RES-2018-051 Resolution opposing the passage of SB-75 and NC Constitution amendment regarding max income tax

Browse Search

ORANGE COUNTY BOARD OF COMMISSIONERS A RESOLUTION OPPOSING THE PASSAGE OF SENATE BILL 75 AND THE AMENDMENT OF THE NORTH CAROLINA CONSTITUTION TO PROVIDE THAT THE MAXIMUM TAX RATE ON INCOMES CANNOT EXCEED FIVE AND ONE - HALF PERCENT WHEREAS, on March 14, 2017, the North Carolina Senate passed Senate Bill 75 and sent it to the North Carolina House of Representatives; and WHEREAS, Senate Bill 75, titled "Constitutional Amendment — Maximum Income Tax Rate of 5.5 %" would be a referendum added to the 2018 November election to seek change to the state constitution to cap the income tax rate at 5.5 percent should it pass the NC House; and WHEREAS, North Carolina's tax rates are already among the lowest in the nation; and WHEREAS, the North Carolina legislature passed a state budget for 2018 -19 in which total state spending remains below 2008 pre- recession spending and the approved budget marks 10 consecutive years of declining state public investments as a share of the state's economy; and WHEREAS, the North Carolina legislature's Fiscal Research Division has released budget projections that show shortfalls in years 2019 -2020 to 2021 -2022; and WHEREAS, the state is already underfunding key areas such as public education, roads, and public health and public safety initiatives; and WHEREAS, passage of SB75 would promote further declining levels of public investments and would worsen the state's ability to address emerging issues at a time when North Carolina is now the 10th most populous state and our population continues to grow; and WHEREAS, counties and cities would be affected as the state would be shifting greater responsibility to local governments for funding things that the state has normally covered; and WHEREAS, passage of SB75 could lead to increases in taxes paid by everyday North Carolinians in the form of sales taxes on more goods and services and at higher rates, property tax increases from local governments, excise taxes and fines and fees, in order to fund existing needs; and WHEREAS, rating agencies often view constitutional tax and spending limits as risky because policymakers then have fewer options in how a state can repay its debts, and a permanent freeze on income rates could risk our AAA bond rating at a time when North Carolina may use bonds to fund existing infrastructure needs; and AND WHEREAS, amending the state constitution would tie the hands of all future lawmakers and prevent evidence -based policymaking and hinder flexibility on state fiscal matters;