Voters in New Hanover County could decide this year on a quarter-cent sales tax to help fund public transportation.
County commissioners Monday approved the next steps to put the sales tax increase on the ballot for November. The transportation tax is similar to the sales tax increases used in the Triangle and Charlotte to fund transportation improvements.
“This sales tax would apply to residents and visitors who make purchases in New Hanover County, and would be equal to an individual spending an additional penny for every $4 spent,” the county’s chief financial officer Lisa Wurtzbacher, said in a news release.
Money from the sales tax can only be used for new transportation projects and improvements. The money could be used for improving Wave Transit bus service, potentially adding dedicated bus lanes. The money could also fund new bicycle and walking paths and rail realignment.
The money cannot be used for maintaining or improving roads. It also has to be used for new projects and cannot replace existing funding.
If approved, the transportation funds can be used in incorporated cities like Wilmington and unincorporated areas of the county.
The quarter-cent sales tax could generate more than $144 million for transportation projects over 10 years, Wurtzbacher said.
The money, she said, “would be dedicated to increasing efficient and effective transportation options in our community and expanding connectivity with trails that are safe and convenient for residents.”
Several counties in North Carolina have already passed similar transportation tax increases, giving New Hanover some examples of how to use the new funding.
Wake County voters approved a half-cent sales tax in 2016. Durham and Orange counties approved their half-cent transit taxes in 2013. The communities in the Triangle have used the money to increase bus service and work on figuring out community rail service.
The plans for light rail in the Triangle have stalled several times, but there’s a new effort to run a commuter rail line from Johnston County to Durham.
Mecklenburg County voters approved a half-cent sales tax increase for transportation in 1999. That money has helped Charlotte and Mecklenburg expand bus service and build light rail and streetcar lines, with another rail line on the way.
Charlotte's LYNX blue line has been a popular commuting option in the city and is credited with helping grow neighborhoods along the light rail lines.
The next step is for county commissioners to hold a public hearing on the sales tax increase. That is expected to come in the next couple of months, according to New Hanover County.
After the public hearing, it will be up to the New Hanover County Commission to decide whether to put a referendum on the ballot.
If the county commissioners put the sales tax referendum on the ballot, voters will decide during the Nov. 8 General Election.
If voters approve the tax increase, the commissioners could begin levying the new tax at the beginning of 2023.