Taxiation

Running head: TAXATION

Taxation

Angie Looman

Axia College of University of Phoenix

Taxation

In 2007 the Richmond Virginia based cigarette company; Phillip Morris announced that it would be closing its North Carolina plant by the end of the year 2010, but now plans are that the plant will close by the end of July 2009. The plant is located in Concord North Carolina and the closing of Phillip Morris could cost the residents of not only the city but the county as well. “Phillip Morris paid about 6.6 million dollars in property taxes to Cabarrus County last year.”(Staff, 2009, ¶ 7). Phillip Morris is the city’s and county’s largest taxpayer contributing 11.9 million dollars to the two annual budgets.

With the county losing much of their revenue, there are many things that are going to suffer. Not only will residents be losing their jobs but the city and county will be losing the revenue from the taxes that were paid by Phillip Morris. Phillip Morris was the top paying tax payer of Cabarrus County. The other major affect that this will have is going to be on the school systems. Now with plans to close the plant suddenly, a year ahead of the schedule closing and the budget plans already lay out; commissioners may have to redo the budget plan.

Plans were already set to put 100 million dollars towards school projects, including the replacement of one. With the loss of the revenue, now there are talks of raising property taxes 4.5 percent over the next three years or they could delay the building of the schools. These schools were set to be built and repaired by the year 2011. The delay of the schools could push the rise of property taxes even higher and the opening of the schools would be set to the 2012. It also means the construction of the schools will cost more because they will be built later when the construction industry and county officials say the economy is expected to begin to improve by 2012

Raising the taxes will affect the...