McDowell County voters will find a sales tax question on the Tuesday, Nov. 3 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," with boxes marked For and Against. Commissioners called the referendum in a June 30 resolution under Article 46 of the state's tax law, which lets a county levy the extra quarter-cent only if a majority of voters approve. The resolution describes it as an advisory referendum and refers to the tax being "approved and enacted."
County Manager Ashley Wooten told commissioners in August that the tax is projected to generate about $1.5 million based on current spending trends. Commissioners have proposed offsetting part of that revenue with a future property tax reduction worth about $650,000, leaving an estimated net gain of about $850,000. The resolution says the board "will endeavor" to make that cut in the 2027-28 budget, sized to what one cent per $100 of value raises on the 2026-27 tax base. Wooten cautioned in June that sales tax revenue can fluctuate with the economy.
The resolution says the money would fund projects "as deemed appropriate by the Board," with education and infrastructure given as examples. In July, Commissioner Patrick Ellis asked staff for options on the shares going to the school system, the college and solid waste. In August, Wooten presented two ways to divide the roughly $850,000 net: 50% to the county, 35% to the school system and 15% to the college ($425,000, $297,500 and $127,500), or 60%, 30% and 10% if the board wanted the county to keep more. He said the board didn't need to act on them then.
The question reached the ballot on two 4-1 votes. On June 29, during budget talks, Ellis moved to hold the referendum and cut the property tax if it passes, saying the tax would help avoid cutting services and pay for employee raises. Chairman Tony Brown voted no. Commissioner Trisha Garner voted yes but, according to the minutes, said she didn't know if the board could sell it to the public and that it would mean giving up property tax revenue. On June 30, the resolution putting the question on the ballot passed with Commissioner David Walker voting no; he said he supports raising the sales tax but the board lacked time to educate the public. Asked whether he would recommend it, Wooten said he would not unless there were plans to educate the public on the referendum and its impact, the minutes say.
In August, commissioners also discussed a letter, from a writer the minutes identify as Dr. Grit, raising concern that lowering the property tax rate could affect the state's low-wealth funding formula for schools. Wooten explained that the formula compares a county's property tax effort with that of peer counties, so a county that keeps its rate lower than theirs can in effect be penalized. He said discussions with the public schools would continue.
Commissioners have also asked the legislature for another route. On Aug. 17, the board approved goals for the 2027 legislative agenda of the N.C. Association of County Commissioners that include additional revenue options, "such as implementing the additional sales tax via a resolution instead of a referendum."