As New Hanover and Onslow commissioners struggle with budget challenges — and try to convince local voters to support tax-hike referenda to be held next month — Brunswick County is looking at a deficit exceeding $10 million. While tax hikes do not appear to be on the table for the county commission, which has offered “better service with less government” as a goal for next year, commissioners are considering a $175 “household waste-management fee” to avoid some layoffs.
So, what’s the difference between a tax and a fee? To taxpayers, it often feels like a distinction without a difference. They lose money they would otherwise be able to spend or save at their discretion. Generally speaking, a tax is levied for general purposes, based on some economic activity engaged in by the taxpayer, while a fee is levied in exchange for a particular good or service.
I’ve always thought that it’s easier to maintain the distinction by focusing less on the method of collection and more on how the revenue is spent. In a CJ column, I argued that state and local government services can be divided into two categories: entitlements, financed by taxes, and enterprises, financed by fees. In Brunswick’ case, commissioners should impose a waste-management fee only if it is justified by the cost of providing that service, not as a substitute for general taxation.
........As you post your comment, please conform to Squall Line's simple comment policy: we welcome all perspectives, but require that comments be both civil and respectful. If you wouldn't say it to a co-worker in front of your boss, it probably is not civil and respectful. We will delete any comment that fails this test and issue a warning to the poster. A second offense will result in a ban on commenting on this site. In sum, disagreements, arguments even, are welcome; abusive behavior is not. Thanks.
You must be logged in to post a comment.
