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new tax bill re sales tax revenue distribution

By: obxmini
3/24/2015 9:04 AM

Just read an article in The Outer Banks Voice:

"Dare County would lose almost 60 percent of the money it gets back from the state in sales tax revenue under a bill filed Monday night by the state Senate majority leader.

But poorer counties like Bertie and Washington would see big dividends to help pay for schools and other public needs.

The plan to change the way sales tax revenue is distributed was announced at a press conference earlier in the day by Sen. Harry Brown, an Onslow County Republican..."

I am interested to read residents of the OBX think about this. Since I am not a local, nor have I been following the local news for too long, I don't know if this is "news" or not.

outerbanksvoice.com/2015/...

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By: dennis in FBG-VA/KDH
3/25/2015 6:05 AM

Just read an article in The Outer Banks Voice:

"Dare County would lose almost 60 percent of the money it gets back from the state in sales tax revenue under a bill filed Monday night by the state Senate majority leader.

But poorer counties like Bertie and Washington would see big dividends to help pay for schools and other public needs.

The plan to change the way sales tax revenue is distributed was announced at a press conference earlier in the day by Sen. Harry Brown, an Onslow County Republican..."

I am interested to read residents of the OBX think about this. Since I am not a local, nor have I been following the local news for too long, I don't know if this is "news" or not.



Yes it is big news. If that happens more than likely taxes of many types will increase and services will be reduced.

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By: obxmini
3/25/2015 2:02 PM

Appreciate your response, Dennis. I guess everyone will be watching and waiting to see what happens next.

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By: jrsilverandgold
3/25/2015 3:59 PM

Just think this is a Republican proposal. Taking from the counties that produce and giving to the poor. HA HA HA

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By: jrsilverandgold
3/25/2015 4:15 PM

Per article Dare county gets back $1.49 for every dollar it produces. Guess Dare citizens are takers. You know takers in the entitled that so many of you hate!

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By: Biggestsquid
3/25/2015 4:34 PM

Per article Dare county gets back $1.49 for every dollar it produces. Guess Dare citizens are takers. You know takers in the entitled that so many of you hate!


I agree. It's the Republican way to provide for those less fortunate so let's step up!

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By: Beachmark
3/25/2015 9:39 PM

Per article Dare county gets back $1.49 for every dollar it produces. Guess Dare citizens are takers. You know takers in the entitled that so many of you hate!
It might be more informative to try some analysis. If the state keeps 4 million of the sales tax that Dare takes in, then there is a net loss there; i.e., much less than $1 back for each $1 contributed. So where is the rest? Highway spending or? And keep in mind this $1.49 number came from a politician!

Looks more like a good old 'who gets the biggest piece of the pie' political fight. Nothing new or unique there.....

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By: Beachmark
3/25/2015 9:50 PM

Yes it is big news. If that happens more than likely taxes of many types will increase and services will be reduced.
For Dare County I presume you mean. Could be higher taxes and the same services too. BTW, there are local optional sales taxes that can be activated in Dare to compensate this some. That would tend to benefit a place like Dare with its tourist economy.

Dare County economics are likely more sensitive to higher property taxes than the non-tourism counties; it would likely mildly retard some degree of real estate investment, which is the capital backbone of the house rental biz in Dare. So it will be interesting to see how plays into this argument/negotiation; there is some validity to the point that Dare property taxes should be lower that typical to keep the tourist economy lively and the sales tax revenues flowing.

Taxes/services can be the opposite for the counties that are advantaged. If you look at the analysis cited, there are about 6-7 'loser' counties and the remaining 93 or 94 are winners under this proposal.

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By: Sea Oat
3/28/2015 7:30 AM

Does NC (or the Feds) collect any highway tax on the gas and fuel that is sold at The local Marinas?

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By: Jighead
3/28/2015 9:03 AM

Per article Dare county gets back $1.49 for every dollar it produces. Guess Dare citizens are takers. You know takers in the entitled that so many of you hate!


I agree. It's the Republican way to provide for those less fortunate so let's step up!


Boy is that funny. Party

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By: Squid Pro Quo
3/29/2015 10:41 PM

Does NC (or the Feds) collect any highway tax on the gas and fuel that is sold at The local Marinas?


Marinas sell off-road diesel, and gasoline for maritime consumption. Just like other off-road users of fuel such as highway, farm and commercial construction equipment. It's not that much of a discount, but it makes sense, as they are not vehicles used on highways.

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By: Sea Oat
3/30/2015 7:19 AM

Does NC (or the Feds) collect any highway tax on the gas and fuel that is sold  at The local Marinas?


Marinas sell off-road diesel, and gasoline for maritime consumption. Just like other off-road users of fuel such as highway, farm and commercial construction equipment. It's not that much of a discount, but it makes sense, as they are not vehicles used on highways.


I thought (maybe incorrectly) that diesel was sold as off road, no tax and gas was taxed. And that the gas tax could be reimbursed to the boater through a form submitted to the state.  It seems fair that a small fuel/gas tax could be levied at fuel marinas that would be earmarked for inlet/channel maintenance the same as the highway tax is used for roads (ostensibly). 
I would be ok contributing this way. Are there any individuals who work or play on the water that don't want the waterways maintained?

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By: Squid Pro Quo
3/30/2015 10:23 PM

Quote:
"Recreational boaters who purchase taxed fuel for use in their boats may be able to get a refund of all or part of that 'highway use tax' depending on the state in which the fuel was purchased.

According to the Federal Highway Administration, almost 4 million gallons of gasoline were used for non-highway purposes in 2001. Of this, almost 25% (993,837 gallons) was used in marine activities. The cost of this fuel generally includes a highway use tax of anywhere from 7.5¢/gallon to close to 30¢/gallon depending on the state.

Many states apply the tax on marine fuel towards boating programs through the Aquatic Resources Trust Fund. But in other states the money does not get funneled into the marine community, and instead is put into the highway improvement fund. Since boats don't cause wear and tear on the highways, bridges, and ferries that benefit from that fund, applying marine fuel tax towards the highway improvement fund is widely viewed as unfair.

To deal with the problem, several states have instituted procedures to refund at least part of the tax to recreational boaters who take the time to fill out the required paperwork and provide receipts as needed. To encourage ABA members to get the refund to which they are entitled, we've compiled basic information on the procedures for each participating state. Most of the state forms include detailed instructions; be sure to read them carefully.

North Carolina

North Carolina's Department of Revenue will refund a portion of the tax paid to those recreational boaters who apply using form GAS 1201 ("Claim for Refund-Tax-paid Motor Fuel Used Off-Highway"). You should file a claim annually providing original receipts. You may file for purchases made three years back.
The forms are available on the NC Department of Revenue site Click to follow link... Form 1201 is year-specific, so be sure to download the appropriate form. The instructions are included in a separate document that you should print out and read carefully.
Mail the claim form and original invoices to:
North Carolina Department of Revenue
Motor Fuels Tax Division
PO Box 25000
Raleigh NC 27640-0950
If you have questions, call the NC Department of Revenue at (919) 733-3409, or send a fax to (919) 733-8654."
End quote.



I think marine fuel is taxed enough already.

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By: Sea Oat
3/31/2015 7:29 AM

Quote:
"Recreational boaters who purchase taxed fuel for use in their boats may be able to get a refund of all or part of that 'highway use tax' depending on the state in which the fuel was purchased. 

According to the Federal Highway Administration, almost 4 million gallons of gasoline were used for non-highway purposes in 2001. Of this, almost 25% (993,837 gallons) was used in marine activities. The cost of this fuel generally includes a highway use tax of anywhere from 7.5¢/gallon to close to 30¢/gallon depending on the state.

Many states apply the tax on marine fuel towards boating programs through the Aquatic Resources Trust Fund. But in other states the money does not get funneled into the marine community, and instead is put into the highway improvement fund. Since boats don't cause wear and tear on the highways, bridges, and ferries that benefit from that fund, applying marine fuel tax towards the highway improvement fund is widely viewed as unfair.

To deal with the problem, several states have instituted procedures to refund at least part of the tax to recreational boaters who take the time to fill out the required paperwork and provide receipts as needed. To encourage ABA members to get the refund to which they are entitled, we've compiled basic information on the procedures for each participating state. Most of the state forms include detailed instructions; be sure to read them carefully.
 
North Carolina

North Carolina's Department of Revenue will refund a portion of the tax paid to those recreational boaters who apply using form GAS 1201 ("Claim for Refund-Tax-paid Motor Fuel Used Off-Highway"). You should file a claim annually providing original receipts. You may file for purchases made three years back. 
The forms are available on the NC Department of Revenue site Click to follow link... Form 1201 is year-specific, so be sure to download the appropriate form. The instructions are included in a separate document that you should print out and read carefully.
Mail the claim form and original invoices to:
North Carolina Department of Revenue
Motor Fuels Tax Division
PO Box 25000
Raleigh NC 27640-0950
If you have questions, call the NC Department of Revenue at (919) 733-3409, or send a fax to (919) 733-8654."
End quote.



I think marine fuel is taxed enough already.


I agree about the fuel tax but am interested in figuring out how to get the money to keep dredging channels that need maintance. I was concerned that if taxes were already beIng collected for fuel and gas that was going into a DOT fund that that money should being applied to channel maintenance.

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By: Biggestsquid
3/31/2015 8:34 AM

The fed should defend our borders and maintain our avenues for transportation and commerce. Other needs should be addressed by the state.

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By: Squid Pro Quo
3/31/2015 10:09 AM

"Many states apply the tax on marine fuel towards boating programs through the Aquatic Resources Trust Fund. But in other states the money does not get funneled into the marine community, and instead is put into the highway improvement fund. Since boats don't cause wear and tear on the highways, bridges, and ferries that benefit from that fund, applying marine fuel tax towards the highway improvement fund is widely viewed as unfair."

Sea Oat, your concern is well founded. The problem is that you could add $2.00 to each gallon of fuel purchased at marinas and you still wouldn't get very far. Why don't you ask your commercial fisherman friends what they would think about that? How about adding $5.00 per pound to the retail sale of the fish they catch? That would go over like a lead zeppelin....(Famous quote by Keith Moon to Jimmy Page)
Like Biggest said, the maintenance of our waterways is intrinsic to our infrastructure and should be funded by the fed and state. Maybe if they weren't spending so much on animal closures they could afford to open the waterways. Clapping smiley

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By: Sea Oat
3/31/2015 11:23 AM

The fed should defend our borders and maintain our avenues for transportation and commerce. Other needs should be addressed by the state.

Doesn't the state collect tax on fuel and gas? Are the Feds suppose to maintain all of NC public roads?

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By: Squid Pro Quo
3/31/2015 11:43 AM

The fed should defend our borders and maintain our avenues for transportation and commerce. Other needs should be addressed by the state.

Doesn't the state collect tax on fuel and gas? Are the Feds suppose to maintain all of NC public roads?


To my knowledge there are both state and federal taxes on motor fuels. Also, Interstate Highways are federally funded and maintained. (Sometimes the SHA and DOT's from the state maintain, but are reimbursed for their costs.) State Highways are maintained by the state. County right of ways by the counties.

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By: jrsilverandgold
3/31/2015 5:55 PM

NC is cutting its gas tax for the rest of the year. They must have all the funds they need.

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By: obxmini
3/31/2015 7:27 PM

Just read another interesting article in the Sentinel which reallly gives the impression of a kind of civil war going on, so to speak.

I'm not from NC, so I really know nothing of reality, however I am trying to learn about what's going on so that if we did decide to make a move sometime, we'd have some background understanding.

Thanks to you all for adding your points of view and comments. Please keep them coming as the story unfolds.

www.obsentinel.com/news/a...

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By: Alexy
3/31/2015 8:34 PM

Don't overthink this. This is just classic NC politics it is just a payback for Hagan supporters and anything connected to Bassnight.

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By: Sea Oat
4/1/2015 7:10 AM

The fed should defend our borders and maintain our avenues for transportation and commerce. Other needs should be addressed by the state.

Doesn't the state collect tax on fuel and gas? Are the Feds suppose to maintain all of NC public roads?


To my knowledge there are both state and federal taxes on motor fuels. Also, Interstate Highways are federally funded and maintained. (Sometimes the SHA and DOT's from the state maintain, but are reimbursed for their costs.) State Highways are maintained by the state. County right of ways by the counties.


It makes sense to me then that strategic ports for national interests should be maintained by the Feds, small ports like OI maintained by the state and municipal docks etc maintained by local governments. Federal grants would apply where appropriate, like OI which the Coast Gaurd uses as access to Federal Waters.

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By: obxmini
4/1/2015 7:32 AM

Don't overthink this. This is just classic NC politics it is just a payback for Hagan supporters and anything connected to Bassnight.


Sigh. No doubt you're right.

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By: Alexy
4/1/2015 2:09 PM

Don't overthink this. This is just classic NC politics it is just a payback for Hagan supporters and anything connected to Bassnight.


Sigh. No doubt you're right.

You know it. Not much changes

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By: obxmini
4/1/2015 8:49 PM

Yes, I do. Earlier, I was going to write "the more things change, the more they stay the same."

Still, I have to keep hoping.

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