Another Temporary Tax May Not Be So Temporary

Here we go again, folks. This time the City of Durham is getting into the “it depends on the meaning of temporary” game. Today’s Raleigh News & Observer reports the following about Durham on page 3B:

“The city is asking the General Assembly to remove a one-year sunset provision on its motor vehicle tax and allow the city to use all the money for public transportation. On Monday night, the City Council approved adding the request to this year’s legislative program with council member Thomas Stith dissenting. Last year, state legislators approved doubling Durham’s motor vehicle tax from $5 to $10 — but only for one year — and placed a number of conditions on how the money could be spent. The revenue — estimated at $650,000 — was to be placed in a public transit reserve fund, with the city spending any interest earned on transit operations. The city has relied heavily on the reserve fund over the past several years, dipping into it to balance its transit budget.”

There’s another paragraph to the story, but the important point is above.

Reader Comments