Watauga Democrat. [volume] (Boone, Watauga County, N.C.) 1888-current, 1929-07-25
LOWER COUNTY
TAX RATES
Increased State Aid Provided by
Last General Assembly for Roads
end Schools Affect County Tax
Rates
University News Letter.

University News Letter.
1t cannot be denied that the last
general assembly granted substan-
tial measure of relief to the proper
ty taxpayers of the state, particu-
larly those in the sparsely settled
counties where the property tax was
most burdensome.
Aid for Schools
The school equalizing fund was
doubled; that is, it was increased
from $3,250,00O to $6,5OO,OOO.
Approximately $4,900,000 is dis
%ibuted among "a participating
ycounties to equalize the current eX-
peDse costs of the six-months con-
stitutional term, and $1,250,000 is
distributed to the special tax dis
tricts to help defray the cost of an
extended term.
The sum of 100000 is set aside
as a stimulating fund for those
counties which are steadily improv-
ing the quality of the teaching staff.
The section of the new school law
which deals with the apportionment
of the 100000 special fund, makes
provision for any participating coun-
ty whose teaehing personnel was be-
low the state average in training the
preceding year to receive an amount
from this fund of not exceeding five
per cent of its estimated salary
needs when, in the opinion of the
state board of equalization, such ap-
po1tionment is justified by the i'm
provement of the schools in such
county. For this purpose the sum
of S126,000 is set up as a possible
apportionment at this time. This will
enable 66 counties to improve their
teaching personnel next year without
affecting the tax rate. No part of
this amount will be paid to a county
unless it can show that better teach
ers have been employed for new po-
sitions and replacements.
Aid for Roads
To further relieve the counties,
$3,000,O00 of the revenue of the
state highway department is return
ed TO the counties. The amount
which each county receives is deter
mined by its area and population.
The legislature passed this act as
tax relief measure, or rather in
creased the tax on gasoline in order
TO permit a reduction in the property
tax. 1.-THE act provides that coun-
TVS appropriation for road purposes
nanst not exceed the preceding years
appropriation by more than ten per
cent, the rest of the state aid to be
applied to tax reduction. For in
stance if county appropriated
$4,000 for roads last year, it might
appropriate S55, 200 this year. There
fore if it received $4,000 in state
aid, the amount to be raised by tax
es would be $4,000, as compared
with $4,000 last year.
The act provides, however, that
the state-aid may be applied to road
Indebtedness, and the attorney gen
eral has ruled that in that case the
limitation of ten per cent increase
does not apply. 1t may be keeping
within the spirit of the law to con-
slider that part of debt service which
has been incurred for roads as part
of the road fund, and then limit the
increase to ten per cent. But if the
state aid is applied to road debt serv-
ice, and not all so-called road bonds
were issued solely for roads, and no
Limitation is placed on county ex-
penditures for road construction and
maintenance, the spirit of the law is
violated. We find ourselves with an
increased tax on gasoline and with
no reduction in property taxes.
Even worse, it amounts to state as
sumption of local road Indebtedness,
much of which was incurred without
resulting in any permanent roads
Potential Tax Relief
A table which appeared elsewhere
in the News Letter show how much
increase in school aid each county is
receiving this year, and also the
amount of road aid it is receiving.
The total increase in state aid is then
reduced to terms of tax rate on the
1923 valuation. 1t is found that the
last legislature granted aid suffi-
cieDt to permit reduction in prop
'erty tax rates of from three to 50
cents on a hundred dollars valua-
tioD. If any county is failing to
make the indicated reduction in tax
rate (or within a cent or two of it,
it must be because the county was
not operating on balanced budget
last year or has increased its appro-
priations for the current year. With
the exception of the $126,500 dis
tributed to encourage the employ
ment of better teachers, the five
million dollar increase in state aid to
the counties was designed to furnish
a relief to property-tax payers, and
they should insist upon getting it.
The $1,250,000 to be distributed to
special school districts is not sonsid-
cred in this study. 1t should give
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