NOTICE: Town of South Carthage Sales Tax Referendum

July 16, 2020

The following release was submitted by South Carthage Mayor, Hollis Mullinax

The Town of South Carthage has placed a sales tax referendum on the ballot for the August 6, 2020 election. I am here today to ask the voters of South Carthage to please vote for the referendum.

What this means is that sales tax for businesses located within the city limits of South Carthage will increase from 2 % to 2.75%. That’s a very small increase that will barely be noticed when a purchase is made, but in the long run, it will be quite an increase in the tax dollars South Carthage takes in. Carthage and Gordonsville are already using this sales tax rate, and up until the County election in 2018 the entire county was using the 2.75 % sales tax rate. In that election the county placed a referendum on the ballot to decrease the tax rate by .75% and it passed, costing the county and South Carthage a huge amount of lost sales tax revenue each month.

Years ago when the County had originally passed the sales tax increase referendum that increased the sales tax rate to 2.75 % county wide, Carthage and Gordonsville had already passed legislation to increase their sales tax to 2.75 %. By having already passed that legislation, when the county voted by referendum to decrease the sales tax rate back down to 2 % it had no effect on them. South Carthage had not passed the sales tax rate increase referendum previously so we suffered the loss of approximately $6,000 per month in sales tax revenue.

In order to regain at least a portion of that revenue, and possibly avoid an increase in city property tax, we need the sales tax increase referendum for South Carthage to pass. This sales tax increase will not affect any businesses unless they are located within the city limits of South Carthage.

Mayor Hollis Mullinax – Town of South Carthage

 

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