HomeMy WebLinkAboutRES-2018-051 Resolution opposing the passage of SB-75 and NC Constitution amendment regarding max income taxORANGE 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;
NOW, THEREFORE BE IT RESOLVED that the Orange County Board of Commissioners
urges voters to oppose this amendment;
AND BE IT FURTHER RESOLVED that the Orange County Board of Commissioners
opposes amending the North Carolina State constitution to provide that the maximum tax rate on
incomes cannot exceed five and one -half percent;
AND BE IT FURTHER RESOLVED that the Orange Board of Commissioners asks the North
Carolina General Assembly to oppose Senate Bill 75.
This the 19"' day of June 2018.