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Published: Jul 19, 2008 12:30 AM
Modified: Jul 19, 2008 02:19 AM

Meals-tax push faces tough economic reality
Money would go toward minor league museum, but financially pinched voters may reject it
 
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Durham County voters will decide in November whether they want to pay an extra 1 percent tax on restaurant bills to help fund cultural amenities.

After two weeks of political maneuvering, Durham lawmakers secured narrow approval from the General Assembly to allow the measure to appear on the ballot. The Senate gave final approval Thursday on a 22-19 vote after much arm-twisting by Sen. Floyd McKissick, a Durham Democrat.

A recent poll suggests that it may be just as difficult to persuade Durham voters the tax is worth the cost. A top political scientist at N.C. Central University is skeptical, too.

Jeffrey Elliot, chairman of the political science department at NCCU, says the fact that the estimated $5 million the tax would generate annually would be spent on projects such as repairing the Durham Civic Center or building a Minor League Baseball museum lessens its prospects for voter approval.

"Voters generally oppose tax increases unless they see immediate benefits, such as aid to education or other issues they feel would have a positive impact on their lives," Elliot said.

"I think at a time when people are paying more and more for gas and groceries and other essentials, even if the cost of the tax is minor, I think people would say there are infinitely more important issues."

Reyn Bowman, president and CEO of the Durham Convention and Visitors Bureau, said voters need to be convinced that the projects to be funded are worthwhile and that the tax won't pinch them financially.

A five-year-old study commissioned by the bureau found that the average household would pay about $19 more a year if the 1 percent restaurant tax were levied.

The study also found that about 40 percent of the tax would be paid by non-residents.

Elliot acknowledged this.

"The fact is, 1 percent on a $10 meal is negligible," he said.

"But any time government seeks to raise taxes it really antagonizes voters who, in Durham in particular, feel they are overtaxed as it is."

Bowman said the education program should emphasize the fact that while 80 percent of the money will go to cultural facilities, the rest will go to cleanup (5 percent), work-force training (5 percent) and marketing of Durham to attract new visitors (10 percent).

He said it's not yet clear what projects will receive funding, though the city and county have identified an unmet need of about $90 million worth of capital projects. In addition to the minor league museum and the civic center, Bowman said another coveted project is an multi-field athletic complex that could attract regional tournaments in baseball, softball and soccer.

The Minor League Baseball museum, which could cost taxpayers $25 million or more, is a high priority for Bowman, Durham Economic Development Director Alan DeLisle and others. They've been in talks with league officials for more than a year.

It's seen as a way to leverage the popularity of the movie "Bull Durham" into making the city a mecca for minor league enthusiasts.

But Elliot doubts many voters share the zeal for that particular project. A better bet for proponents would be to push the civic center repairs or the athletic field complex, Elliot said, but even those wouldn't excite most voters.

The Convention and Visitors Bureau recently took a poll of Durham residents and found that 47 percent of voters support the tax, 37 percent oppose it while 16 percent are undecided.

Ellen Reckhow, chairwoman of the Durham County Board of Commissioners, said a steering committee likely would be appointed in August to formulate a campaign for the tax.

She noted that for the city and county to raise $5 million together, each body would have to increase their property tax rate by a penny.

"I think there's an advantage to diversifying our revenue stream through a source where we get a lot of help from people who don't live in our community," Reckhow said.

"It lightens the load on our property tax."

matt.dees@newsobserver.com or (919) 956-2433
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