By Josh Green
DURHAM, N.C. — On Wednesday morning, restaurant owner Gene DeVine put a new phrase up on his store sign outside
Under “Welcome Duke,” he spelled out three words: “No Food Tax.”
“Everything’s in a crisis. Our economy’s in a crisis. Taxes are skyrocketing,” said the owner of DeVines Sports Corner & Grill on Main Street in Durham. “If it’s the worst time to do anything, it’s now.”
At a news conference at his restaurant Wednesday morning, DeVine joined members of the Durham Citizens Against The Food Tax committee to speak out against the proposed tax. Through a referendum on the Nov. 4 ballot, Durham residents will decide whether or not the county can levy a 1 percent tax on prepared meals. That would include restaurants, banquets, catering and more.
Here’s how the county would use the money:
- 80 percent for civic and cultural projects, including recreation and trails
- 10 percent to market Durham and its amenities
- 5 percent for community cleanup
- 5 percent for workforce training
“We’ve got a golden opportunity to give all the projects that we love and care about their own funding stream,” community activist Melvin Whitley said. “Now is the time we ought to do it.”
Supporters of the tax say the tax on prepared meals will make visitors share the expenses in developing and maintaining Durham’s “cultural and recreational attractions.” They say visitors will pay for about 40 percent of the revenue coming from the tax. That includes those who work here, but don’t live here.
“If people want a baseball museum, then people who go to the baseball museum need to pay for it,” said Dallas Woodhouse, Treasurer for the Durham Citizens Against The Food Tax. “None of these projects have to be built. We are not talking about putting up a fire station to save people’s lives.”
Supporters argue that the taxes would ease Durham residents’ burdens, including homeowners in the long run.
“In order to generate this much revenue through property taxes, you’d have to have a one-cent increase in the city property tax and a one-cent increase in the county property tax,” said Chuck Watts, co-chairman of the committee in charge of promoting the initiative, at a kickoff event two weeks ago. “Meaning city-dwellers would pay an additional two cents in property tax.”
But opponents say it’s not worth it.
“There have been who have been salivating over this tax for 17 years and the stuff hasn’t been built…and, as far as I can tell, Durham is functioning fine,” Woodhouse said. “The idea that we are going to build these things and we’re going to do these things and it is inevitable is simply a false argument.”
But others, like Whitley, believe it would be a worthwhile investment.
“We’ve gone from group to group to group to explain the benefits of this tax,” he said. “I spoke to a group this morning and – once they understood what it was about – they were for it.”
Paul Stone, President & CEO of the North Carolina Restaurant and Lodging Association, said it creates an unfair burden on restaurants.
“Why should one industry be targeted? Why not hardware stores? Gift shops? Grocery stores,” he said. “None of these folks are being asked to carry the weight on this.”
Wake County and Hillsborough both have the tax already. Whitley said some of those backing the failure of the tax are not even from Durham.
“When I go to Raleigh and spend money at a restaurant in Raleigh, I help pay for their facilities,” he said. “Now…Raleigh’s telling us that our facilities are unimportant.”
Woodhouse said residents shouldn’t be paying the tax at all.
“I think we ought to repeal it in Wake County,” he said. “You have a fundamentally different socio-economic make up in Wake County. This is a poorer population in Durham County. That is just a reality.”