DANBURY — The Stokes County Board of Commissioners wants to add two items to the November 2024 ballot for voters to decide: adding a 1/4 cent to the sales tax and allowing the sale of mixed (alcoholic) beverages to be sold in the county.
County officials presented draft resolutions on both items at their May 28 meeting. State statute requires both matters be approved by the public through election. Passage of each resolution will authorize the Board of Elections to add the referendum to the ballot in November.
1/4 cent sales tax
The current sales tax rate in Stokes County is 6.75%. Of that, 4.75% is state sales tax and 2% is for local use. A 1/4 cent increase would bring the total sales tax to 7%.
The increase would add a slight amount to the total cost for those purchasing items subject to sales tax in Stokes County.
On a $10 purchase, the sales tax would increase 2 cents, from about 68 cents to 70 cents. (The total spent would increase from $10.68 to $10.70).
On a $100 purchase, the sales tax would increase about 20 cents, from about $6.80 to $7. (The total spent would increase from $106.80 to $107).
While the impact on purchasing individuals would be small, the extra income could add up significantly.
The increase could generate as much as $800,000 to $1.2 million in additional revenue for the county, depending on the number of visitors and amount of sales, Interim County Manager Amber Brown said in her May 28 budget presentation to county officials.
Board of Commissioners Chair Brad Chandler described the sales tax increase as a more equitable way of raising funds to support services, especially since the county draws so many visitors who do not live locally but will contribute to sales tax.
“I just think that it’ll take some of the the heat off of just the property taxpayers here in Stokes,” Chandler said.
“This is a more fair way to do it,” said Commissioner Sonya Cox, “because everybody is purchasing things at stores, and it’s just a quarter of 1 cent, which I think last time that got misconstrued.”
The Stokes County Board of Elections confirmed that a similar referendum appeared on the ballots of the November 2016 general election and the March 2020 primary election. It was defeated both times, with 79.62% of 21,348 ballots voting against it in 2016 and 59.81% of 10,561 ballots voting against it in 2020.
Most of the surrounding counties, including Surry, Rockingham and Forsyth, have adopted the 1/4 cent local sales tax increase for a 7% total sales tax. Yadkin County has a 6.75% total sales tax.
Alcoholic beverage election
The other referendum proposed would make it legal for mixed alcoholic beverages to be served at restaurants and venues in Stokes County.
“There’s a lot of restaurants in the county that have made mention that they’re a little bit at a disadvantage,” compared to businesses in counties and towns that allow the sale of alcoholic beverages, Chandler said.
The draft resolutions for both the 1/4 cent tax increase and the alcoholic beverage election include a sample ballot and are available on the county website in the May 28 agenda.
Commissioners delayed a vote both resolutions to give the public a chance to speak on the matter at the next meeting, which is scheduled for June 10 at 6 p.m.
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