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Board advised on steps to place sales-and-use tax referendum for school construction on ballot
Summary
County staff explained that newly-included budget language allows localities to seek up to 1% additional sales tax and up to 1% use tax for school construction or major renovation for up to 20 years; staff noted a court-order timeline (August 21) to sync a special election with the November general election.
County staff outlined on July 7 how Essex County could seek voter approval of an additional local sales tax and a corresponding use tax to finance new construction or major renovation of school facilities.
Max, the staff member who led the explanation, said the budget bill’s language inserted the authority to adopt up to 1% additional local sales tax and up to 1% additional local use tax specifically to fund new construction and major renovation of school facilities. He said the tax authorization would be time-limited (up to 20 years from the date the resolving ordinance is adopted) and that the process requires the board to adopt a resolution authorizing a petition to the circuit court, which then orders a special election.
Max told the board there is no statutory requirement to sync that special election with the November general election, but if the board wants to do so there are tight timelines; he cited an August 21 deadline to have the court order the special election in time to align with the general election. He also said the ordinance authorizing the tax would specify eligible projects and that proceeds must be dedicated to capital improvements for schools.
Board members asked what items qualify as use tax versus sales tax and whether the tax could focus on certain categories (for example, meals or restaurant taxes in other places). Max said those determinations are set out in statutes and the board staff would provide statutory details when preparing the proposed resolution.
Board members generally supported placing a resolution on a future regular agenda to allow the public to vote on the question, with staff to prepare a draft resolution and the required timeline details for consideration.
