The chairman of the Lincoln County Board of Commissioners urged residents to vote Nov. 4 on a proposed, five-year 1% local option sales tax that would fund a floating homestead exemption intended to reduce property tax bills for qualifying homestead owners.

The proposal would add one penny of sales tax within Lincoln County for five years and, according to the chairman, “100% of that money ... has to, by law, reduce your millage rate to reduce what you pay on your property taxes.” He said the county and the city of Lincolnton have both voted to put the measure on the ballot.

Why it matters: The chairman said Lincoln County’s general fund budget is $8,797,000 and that the county’s consolidated budget exceeds $18 million. He described the floating homestead exemption as targeted only to homestead residences and said the county projects the tax would bring in “just under a million dollars a year” and produce roughly a 2-mill reduction — from about 7.885 to approximately 5.885 — in the county millage rate for homesteads.

Details of the plan and local context

At the meeting the chairman read the exact ballot language that will appear to voters: “Shall a special 1% sales use tax be imposed for 5 years within the special district of Lincoln County with the proceeds used exclusively to reduce property taxes imposed by Lincoln County and the municipality of Lincolnton.” He said the measure applies only to homestead properties (owner-occupied residences receiving a homestead exemption) and does not affect commercial, rental or most farmland property.

The chairman noted limits on county communications about the ballot measure: the county cannot spend public funds to advertise the tax question, so commissioners can only speak about it at public meetings and through permitted channels. He said some of the sales tax burden will be borne by nonresidents who shop in the county, reducing the share paid by local homeowners.

What was not decided at the meeting

No new ordinance or binding fiscal change was adopted at this meeting regarding the tax; the commission’s prior vote to place the question on the ballot was described as already taken. The discussion at this session was informational and promotional in tone; no additional motions on the tax were made or taken during the public meeting.

For voters: Election day was stated as Nov. 4; residents with questions were asked to contact the county commission office for details and official materials.