A bit of local history sounds more like a fairy tale. Once upon a time, the city of Pinehurst had no property taxes. The city was able to rely on sales taxes alone for a two-year period.
Pinehurst City Council meetings show property taxes were eliminated in August 1989 after voters approved a half-cent per dollar increase in the city sales taxes.
The heyday of MacArthur Shopping Center had passed by that time, but the Sears store was still operating in the center off MacArthur Drive. And nearby, K-Mart had a large store at another shopping center and Weiner’s was open.
Current City Secretary Debbie Cormier researched ordinances for the city and found the dates of the end of property taxes for the city.
C.J. Huckaby, who was later an Orange County Commissioner, was mayor. Council members included T.W. Permenter, Larry Fisher, B.F. Cummings, Renny Buker and Bob Williams. City Administrator was Walter Cobb, a former Orange police chief. Tommy Gunn had been hired as city attorney a few months earlier.
In June 1989, the council talked about increasing sales taxes with the idea of cutting out the property taxes. The council also decided to change the dates of the city’s fiscal or budget year to coordinate with the calendar year. The council agreed to do a “bare bones” budget for six months, July 1 through December 31. Then a new, full budget year would begin in January and run 12 months.
The council called for an election August 12, 1989, to increase the sales tax with the understanding the property tax would end. Citizens overwhelmingly approved the move, with 157 voting “for” the sales tax and 14 “against.”
At the next council meeting, Cobb said “the increase would more than offset the monies that the city would receive from property taxes.”
Pinehurst had a property tax of 37.9 cents per $100 valuation. The owner of $75,000 worth of property was paying about $285 a year in city taxes, less if a house had a homestead exemption.
But what goes away can come back. By December 1991, the council was putting together a new budget for 1992 and decided the city needed the property tax back. The voted for a 22.44 cent per $100 valuation tax rate. Under the rate, the owner of $75,000 of property would pay about $168 per year, less with a homestead exemption.
A.R. Morgan was mayor when the property tax came back. Other members included Tom Bishop, Steve Johnson, Bob Hood and Gail Meadows. Bishop and Johnson voted against starting back with property taxes.
-Margaret Toal, KOGT-
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