Scotland voters will see a sales and use tax increase referendum on the ballot

LAURINBURG — In Scotland County, government leadership is not the only thing at stake in this November’s general election.

When registered Scotland County voters receive their ballots, they will see a sales and use tax referendum, recommended by the county government, to increase the county’s sales tax by 1/4 of a cent or from 6.75% to 7%. This would mean 7 cents will taxed on every $1 spent at retail stores (not including groceries and gas) and eateries in Scotland County.

The change would divert from neighboring counties Richmond and Hoke, which also carry a 6.75% sales and use tax, and join Robeson, Cumberland and Moore counties, which have the 7% sales tax.

The Scotland County Commissioners say the increase in sales tax would allow the county to collect additional revenue by using a less burdensome alternative to raising the property tax rate.

“What that would mean is if you or your families would go to a local restaurant and spend $20 for your meals it would cost you an additional 5 cents,” said Commissioner Whit Gibson in a video the county is circulating to ensure residents are more informed about the referendum. “That nickel from everybody who would pay the sales tax would bring in an additional $1 million into the tax receipts of Scotland County that the commissioners could use to provide additional services to our citizens.”

Despite a 1-cent drop in 2022, the property tax rate in Scotland County still tops the state at 99 cents per $100 of a property’s value.

“This money is going to go into the general fund balance to help us keep our property taxes under where they are now or even trying to bring ‘em down more,” Commissioner Tim Ivey said.

Scotland County, specifically in the city of Laurinburg, has seen significant commercial growth in the last few years. Several fast food restaurants have been erected along Main Street and retailers like Five Below and most recently Hobby Lobby have established roots in the county.

Gibson said the commissioners believe that half of the money garnered in the increased tax will be coming from visitors traveling through the county, specifically in the summer, spring and early fall, heading to the beach.

“Those revenues will come from, not our residents, but people who are coming through here,” Gibson said.

“Our goal in this is to try and develop a lot of this money coming from our travelers, traveling through the county, stopping to buy things, fast food, that type of stuff in order to help our general fund … Property tax is paid by citizens who own property. Sale tax, however, is paid by everyone whether they own the property or not,” Ivey said.

Ultimately, the chairman said the commissioners don’t believe the increase “would be an overburden to anyone.”

As mandated in the North Carolina General Statute, the referendum will appear on the ballot “Local sales and use tax at the rate of one‑quarter percent (0.25%) in addition to all other State and local sales and use taxes.” Voters will have the opportunity to select if they are “FOR” or “AGAINST.”

The Scotland County government has begun running a campaign to get residents educated about the referendum ahead of the early voting which begins Oct. 17. Election Day is Nov. 5. More commissioners will film short information videos touting the benefits of the sales tax increase.