Saturday, July 21, 2012

Second verse same as the first

You know, I actually thought that perhaps the Henderson County Board of Commissioners would have taken to heart their experience with the Highland Lake Golf Club and the soccer complex fiasco, but I would be wrong.

The commissioners have now created the Flat Rock Playhouse tax debacle. And why has this blown up for them? For many of the same reasons that the golf course/soccer complex became a problem.
  • How was it decided that a special tax increase was appropriate?
  • What criteria were used to determine that the special tax increase monies would go to the Flat Rock Playhouse? Were other non-profits considered? Why or why not?
  • Where is the transparency in this decision?

And the facts:
  • The tax increase is NOT a "one-penny" increase, as many state (including the Times-News editorial--and they should know better). It is an increase from 5% to 6%, which for every dollar spent may increase the tax burden by one cent, but the more dollars spent, the greater the burden. Also, the tax rate increase from 5% to 6% is a 20% tax increase from the current rate.
  • This tax falls only on the hotel industry. Some say that because the tax affects only tourists, and not Henderson County residents, it should not be controversial. But a tax, any tax, has consequences. In this instance, the consequences fall on the hotel business owners in the area and no one else. Since both Polk and Transylvania counties have lower room tax rates, Henderson County hotel owners are concerned (rightly, I think) that they will lose business to their neighbors.
  • Taxation is a necessary part of governance, but there is no denying it is a taking of property (monies) by the government by force. Any tax increase, no matter who or what it affects, should be taken only after the most careful consideration--it is not a power to use lightly or cavalierly. This decision to contribute on-going tax monies to the Flat Rock Playhouse seems a whim
I have no problem with the county deciding to give the Playhouse a one-time, or even yearly, contribution as they do other organizations. The Playhouse does add to the economic vitality of the community, but dedicating a tax increase to only one organization is not right.   

There will be a special meeting by the county commissioners on Wednesday, August 8, at 1:00 p.m. The room tax increase for the benefit of the Flat Rock Playhouse will be the only item on the agenda.

1 comment:

  1. I agree! And your math is impeccable. Great math lesson for my middle school students and their county commissioners.

    ReplyDelete