Calling themselves the Alliance for a Prosperous North Carolina, dozens of local governments and business groups statewide Monday asked lawmakers to reject efforts to redistribute sales tax revenues.
In the letter to lawmakers, the businesses and communities said they worry that a redistribution of revenues could hurt bond ratings and lead to higher property taxes. Signers included the city of Charlotte and the Charlotte Chamber as well as Catawba, Cabarrus and Iredell counties.
“A change in the formula could negatively affect the attraction of economic development prospects due to already higher-than-average costs of housing in many of the affected counties,” they wrote. “Having to increase property taxes to compensate for the shifting sales taxes will place us at a further disadvantage, harming the jobs market for entire regions.”
The Senate has proposed changing the way sales tax revenues are distributed to a formula that generally favors small and poorer counties.