With several of the county's biggest landowners one to two years behind in taxes and some already going through bankruptcy proceedings, Halifax County commissioners agreed by a 5-1 vote to enact the quarter cent sales tax approved by voters in a February referendum.

That action is expected to make up for the projected shortfall and means the sales tax would be enacted in January.

Commissioner Vernon Bryant voted against the measure, telling rrspin.com before going into closed session he thought it premature to vote and believed the county needed to wait to see where it was closer to January.

County Manager Tony Brown said before the board went into closed tonight he did not know the exact number of landowners who make up the delinquent tax payments or potential bankruptcies. Their names were not mentioned during discussion of the matter.

It is known through sources that two 100 acre plus parcels in Carolina Crossroads are included and an auction of those parcels is scheduled for Thursday at 11 a.m. at the Hilton Garden Inn.

Brown told the board the projected loss of revenue from the delinquencies is between $600,000 to $800,000. “This is based on major property owners, both actually and potentially declaring bankruptcy. Loss of these funds would also hinder the county's tax collection rate, which would lower revenue projections for fiscal year 2013-2014.”

In the current fiscal year, the county had to use $2 million from the fund balance to balance the budget for capital needs, Brown said. “This will exist in future years unless revenue are increased or non-mandated program cuts in county operations are made. The potential exists for further non-collection of taxes with the ongoing economic decline and stagnation.”

The county had three options on the matter, the first being to approve using the sales tax January 1, which was done. Projected revenues are $400,000. The second option was to enact in April and receive revenue of $200,000. The third option was to not implement the tax and review next fiscal year's budget during the third and fourth quarters and address the shortfall through fund balance and operational costs.

The county manager told the board, however, he didn't see where the county could make $2 million in budget cuts.

Brown said there have already been bankruptcy filings which will cost the county $128,000. “The property owners are really struggling to pay $100 versus $100,000.”

While Brown's recommendation was to wait and see, board Chair James Pierce said the only other option the county had was to go into the fund balance or raise taxes. “We can't cut anymore. We've got to make up the shortfall in some way.”

Commissioner Rives Manning made the motion to move forward and Rachel Hux cast the second.

In a year the sales tax will raise $1 million.

The sales tax will not apply to the following:

Groceries or non-prepared foods

Buying vehicles

Buying gasoline

Buying prescription drugs

Earlier documents on the tax said the only other revenue source the county has at its disposal is property taxes. To raise $1 million in revenues via property taxes with the current tax rate, would require at least a 3 cent increase in the tax rate — 68 cents to 71 cents.