North Carolina cities have no taxing authority except as explicitly granted by the state legislature. So when State Senator Jim Perry, chair of the powerful Senate Finance Committee, decides to investigate Raleigh’s taxing authority, shock waves go out to every corner of city government. 

At the moment, Senator Perry is focused on the fairness of the city’s proposed special added property tax (MSD) that would be levied in west Raleigh. It is clear from this Axios report that Perry has heard from taxpayers in the Blue Ridge Corridor who question the validity of the added tax. Perry’s draft legislation would compel more study before any new taxes are levied. 

We hope it’s not too late for the Raleigh City Council to pause their MSD vote, and instead, do what Livable Raleigh recommended when the MSD first came to Council: Start by engaging all stakeholders in an Area Plan process that builds consensus for a vision of the Blue Ridge corridor’s future. Then decide the most equitable way to fund city improvements there, whether it be through a special added property tax MSD or other funding mechanisms.

Council’s record of taking major votes without listening to stakeholders continues to disappoint. First they defunded CACs without asking, and then they  secretly gave themselves an extra year in office. Most recently they voted against their constituents to double their term lengths from 2 to 4 years. Now, having ignored stakeholders in the Blue Ridge Corridor, they stand on the verge of losing their taxing authority. With the Council elections coming in November, don’t make the same mistake again: engage stakeholders and act according to their wishes or prepare to be voted out of office.

Update – at their June 18, 2024 meeting, City Council voted not to take action on the MSD at this time.

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