21% Tax Increase Proposed

Webster’s Dictionary defines a tax as a compulsory payment for the support of a government. Then, why are city officials claiming Raleigh’s tax rate will remain flat when residents would be paying an increase of $80 per year for new “garbage collection and storm-water fees”?

Raleigh City Manager, Russell Allen, and his budget staff are proposing several tax increases — cleverly disguised as fees — on the citizens of Raleigh.

The new tax on garbage – called the garbage collection fee — would rise from $15.60 to $60 per year per household, which is equivalent to a 4.4-cent tax rate increase on a $100,000 home. If passed by the City Council, this new tax would become effective on July 1, 2002. In addition to the proposed garbage tax increase, a proposed storm-water tax increase would range from $2 to $3 per household per month. This tax increase is equivalent to a 3.6-cent tax rate increase on a $100,000 home. The total increase in these fees amounts to a 21% tax increase for families living in homes valued at $100,000.

Another proposed tax increase is the “privilege license fee” which all business owners must pay, would increase from $25 to $50 per year for smaller companies. The fee for larger companies would range from $750 to $2000 annually.

“Candidate Charles Meeker said he would not raise our property taxes,” said Jonathan Hill, Director of North Carolina Citizens for a Sound Economy. “Taxing rain and garbage is a new twist on raising taxes on property owners. We will not stand back and watch the politicians raise our taxes – no matter if they try to cleverly disguise a tax increase by calling it a fee. Our members will be calling the elected officials with this message and we hope they listen.”