A recent social media post by the town of Cornelius has caused in a stir in Mecklenburg County, as some believe local municipalities are expressing public support for a proposed one cent county sales tax increase referendum, conduct which may violate state law. The referendum may also appear on the ballot next year.
At a board meeting in September, the Mecklenburg County commissioners voted 6-3 to proceed with a proposed referendum on a one cent sales tax increase in the county. The commission believes the tax would generate $345 million in revenue over the first year. The focus of the tax funding would be support for the Red Line commuter rail project, extending Charlotte’s mass transit system from northern Mecklenburg county to uptown Charlotte, an initiative that has been talked about and proposed for decades.
The proposal was also approved by the Charlotte City Council. In order for the referendum to appear on the ballot in 2025, it will need final approval from the NC General Assembly.
Eric Rowell, a resident of Huntersville and former candidate for Huntersville town commissioner, drew attention to the online post by the town of Cornelius, which appears to promote the development of “Landmark draft legislation which would deliver the Red Line.” Rowell believes the town has run afoul of NCGS § 160A‑499.3, which states, “A municipality shall not use public funds to endorse or oppose a referendum, election or a particular candidate for elective office.”
In an interview with Carolina Journal, Rowell said he does not support the conduct of Cornelius or the tax increase aimed at building the Red Line commuter rail.
“We live in Mecklenburg; it’s kind of what you accept, living here,” he said. “What I can’t accept is the propaganda that goes along with this, especially what is being pushed by the towns. That is a violation of state law. Towns and even certain employees and elected officials cannot use public resources or public funds to push referendums. This comes up all the time with school boards because you always have questions with teachers and principals pushing school bonds. Technically, the only reason I don’t think it’s a violation of state law is because there is no referendum yet. It does have to go to the legislature and the legislature has to approve it, then it goes on the ballot.”
“This has been a carrot dangled since 1998,” Rowell said in reference to the Red Line commuter rail. “Just raise sales tax 1 percent and you’ll get a train!”
He continued by saying county officials and other stakeholders are all talk with no action to show for it.
“Voters approved the sales tax increase and we’ve been paying since 1998 with no train and little else to show in north Mecklenburg (the county that includes Charlotte) except a few covered bus stops for BRT,” Rowell said. “I am not a proponent of this rail project for multiple reasons, and I have no illusions about the likelihood of a referendum next year being voted down, but I think it’s worth at least providing voters the full story before they vote and not just the half-truth propaganda being pushed by local vested interests.”
CJ also spoke with Dr. Art McCulloch, a retired physician residing in Charlotte and candidate for Mecklenburg County Commissioner District Five. McCulloch believes the tax increase is beneficial and that more mass transit is needed across the county.
“If it’s good for one part of the county, it’s good for the whole county,” McCulloch said. “Not just that one segment. We have to have a vision of a transportation system that’s interconnected, which includes connecting to the airport in my opinion. It includes all these different parts connecting to each other, and to all of the towns. I think a sales tax is an appropriate way to pay for that, but we’re talking about a 20-year vision.”
Charlotte City Councilman Tariq Bokhari believes that local governments in Mecklenburg are pushing for the referendum in various ways. He told CJ in an interview there’s a way to move the Red Line project forward to benefit all parties involved. In terms of cost, Bokhari said the sales tax increase would fund $20 billion for the Red Line.
“We know they’re all advocating behind the scenes,” Bokhari told CJ. “Over 30 years, the one cent sales tax would fund about 20 billion. That 20 billion has to be capped at 40 percent for the rail under the current model. So, if you take the overall math on that and say 8 billion could go to rail, no more, no less, then I think ultimately the Red Line would cost somewhere between 2-3 billion between acquisition and development. So that doesn’t leave enough money for the silver line and other things, which is my whole strategy to begin with, to cap it. It will be part of it, but it will basically be 20 percent of the spending.”
Bokhari stated he doesn’t think the General Assembly will even review the proposed referendum this year, and it remains an open question whether the measure will be brought up for a vote when the legislature reviews it.
“There’s almost zero percent chance the General Assembly will touch it this year,” he said. “I think there’s a good chance they’ll try to touch it at the beginning of the long session, but it all boils down to whether the caucus is going to pass it out and allow it to come to a vote. It depends on how hard I fight against it. That’s probably one of a couple wild cards. There’s a way we can get it done and everybody benefits.”
Local Reaction to the online post
CJ also reached out to the other towns in Mecklenburg regarding whether they have taken a position on the Cornelius social media post.
“The Town has no position on whether the referenced post is in violation of state statute and it would be inappropriate for me to comment on that,” said Matthews, North Carolina Town Manager Becky Hawke in an email to CJ. “The Matthews Board of Commissioners unanimously passed a resolution in opposition to the authorizing legislation but has not spent any funding on the matter.”
Davidson’s board of commissioners did not comment on the post, stating only that they passed a resolution supporting the advancement of the draft legislation on the referendum.
“The Davidson Commissioners approved a resolution supporting the advancement of the draft legislation to enable voters to decide should the NC General Assembly authorize the sales tax referendum be placed on the ballot in 2025,” said Davidson’s Communications Director Jessica Eggimann Johnson in an emailed statement to CJ.