Two of Newton County’s supervisors shared their reservations last week about a proposed plan to use the county’s share of the Internet Use Tax to finance a $5 million bond. Their concern was that the Use Tax, while protected for now, could be re-appropriated by the Legislature sometime before the 20-year bond was paid off.
Losing the Use Tax would likely mean a tax increase on county residents to make the yearly $460,000 bond payments.
Although $5 million would be a godsend for our county roads, the supervisors are right to show caution before signing their constituents up for something that sounds a little too good to be true.
As things stand, the state is likely to see revenues take a big hit from everything being shut down with the coronavirus, and with the nation facing record unemployment and a recession coming uncomfortably close to 1920’s levels, the shortfall probably won’t be made up anytime soon.
When the dust settles, I expect the folks in Jackson will be taking a pretty close look at every dollar, and since a lot of people haven’t had a whole lot to do for the past few months but sit at home and shop on Amazon, the Internet Use Tax is going to be a temptation I’m not sure they’ll be able to resist.
Of course any legislator will be the first to tell you the Use Tax is protected for at least the next decade. As the law stands, counties get 15 percent, and it would take an act of, well, the legislature, to change that.
Personally, I don’t think the legislature will pull the money. Newton County is one of many counties looking to use the Use Tax to issue a bond, and any representative or senator to suggest pulling the rug out from under them likely wouldn’t be a representative or senator much longer.
But the fear remains, and it is justified. The coronavirus pandemic has shaken not just Newton County or Jackson but the world. Who knows just how bad it’s going to be, how much rebuilding will need to be done or how long it will take.
If it were me, I would move forward for the bond, not just because I’m getting ready to buy tires 11 and 12 for my 3-year-old car.
Our supervisors’ concerns are valid, but I don’t see a less risky way to get the money to repair our roads. I doubt Jackon will be in a a position to provide much infrastructure help in the near future, and folks are going to need good roads when we can all get back to work.
You can contact Thomas Howard at thoward@newtoncountyappeal.com
