I Pick 3 out of 4

The Sanford Herald ran a poll starting Sunday on why the tax proposal failed. The four choices are getting about equal votes.

	Public should have been told about possible property tax increase
	Government should have promised money to local schools
	There should have been better overall information available
	Nothing. The tax had no chance of passing.

I would vote for all of the first three.

A summary of county votes on additional taxes prepared by WRAL-TV paints a pretty bleak picture for any changes in the sources of revenue available to counties. (Click here to see story)

But only eight of the 55 separate votes on the tax increases have been successful. Opponents of the land-transfer tax are a perfect 20-for-20 in defeating the idea, including four times last week.

That the land transfer tax has failed so consistently is somewhat easy to understand although there is a certain logic behind it especially in rapidly growing counties. That logic is that the development of new homes creates demands on infrastructure. First of all, it has serious local predators among home builders and realtors that have given them a significant financial advantage in the campaigns. But since the tax applies to all home sales including existing ones, it has been portrayed as a "home tax" that unfairly singles out home owners for the burden of new schools and other infrastructure. Given its track record, it looks like a dead source of local revenue especially now that the sales price of homes in many markets are failing.

The .25 sales tax looked like an easier sale. First of all, changes in state tax laws have reduced the sales tax from 7% to 6.75%. Adding back the .25% doesn't sound like a horrendous sacrifice; in fact, many people think the tax is still 7%. In the sense that everyone who shops in a county pays it, it is a "fair tax." In fact, in a county like Lee which is a retail hub, at least a third of the revenue would have come from people outside the county. But only eight of the 55 separate votes on the tax increases have been successful.

There is a consistent rationale as to why these counties passed the tax. The voters knew that a specific project was going to paid for by the tax--a project that would likely be funded with property taxes if the sales tax failed. The choice then was which tax do you want to have - not do you want a new tax. This is where Lee's tax failed.

First of all, there was never a commitment to a specific plan for the renovation of Lee County High School. On November 20, 2007 the Lee County Board of Education sent a revised plan for the renovation of the high school to the Board of Commissioners along with additional information requested by the commissioners. The County Commissioners never spent any significant time discussing this plan jointly with the BOE or among themselves. There were questions about why it was even necessary to renovate rather than repair the school. This lack of clarity left tax opponents with the chance to argue that the money was not needed for the school--the old "a couple of buckets of tar and a few rakes will fix the problem." And to taxpayers, the project surely didn't look imminent. The message was if the sales tax doesn't pass we will not be able to do the school. So all the arguments that are the strongest arguments were forfeited by the commissioners handling of the matter.

This gave rise to the famous "trust us" comment. The voters answered 'no' two ways--the defeat of the sales tax and the defeat of the chairman Bob Brown.

Rushing back to another vote is a waste of time. Until the commissioners endorse the Hite plan, there is no point even discussing it.

Note: Comments are open. Your comments on this issue would be really welcomed.