Will the third time be the charm when it comes to passing an additional quarter-cent sales tax in Macon County this November? 

Voters hold an estimated $2.2 million to $2.4 million in annual county revenue in their hands when they check yes or no on the sales tax referendum — a measure that has failed twice in the last four years.

In 2024, the referendum fell short by just 487 votes, or 2.44% of the 21,905 ballots cast.

Voter education effort

Macon Quarter Penny Committee (MQPC) Chair Betsy Baste thinks with a little education, that 2.44% or more might change their minds at the ballot box.

Baste is a former educator and volunteered to spearhead the committee in partnership with Macon County residents from a diverse range of backgrounds and political leanings, and together, the group has reached practically every corner of the county to inform the public of the facts about the sales tax referendum.

“I saw an opportunity to help people understand things, and I think that when people understand things … when they have the big picture, they make different choices,” Baste said.

The $2.4 million estimate represents what the county could have collected annually had the referendum been passed the last time it was on the ballot in 2024.

To make the equivalent of the estimated revenue from the 0.25% sales tax hike, commissioners would have to raise property taxes by 1.7%.

“It just makes no sense to not vote in favor,” said Carson community member Brenda Elliott.

In early October, Elliott attended a MQPC presentation at a Carson community meeting, and going into the meeting, she didn’t have a strong opinion on the sales tax referendum but was generally opposed to tax increases.

“You see a tax increase, and you automatically think hundreds of dollars, and when you look at it and see what a small amount it is — I mean, what’s a quarter of a penny?” she said. “A quarter of a penny is nothing.”

What does the tax do?

If the referendum passes, Macon County would tack on an additional $0.025 to every dollar spent in the county on certain nonessential goods.

The tax does not apply to unprepared food/grocery items, prescription drugs, motor vehicles, electricity, and natural gas, manufactured/modular homes, and boats and aircrafts.

“Things that we have to have to live, those are not affected by this tax,” said MQPC Chair Betsy Baste.

Baste has been using everyday purchases to illustrate the relatively small impact the tax increase would have on consumers.

A 50-inch television that costs $532.68 with Macon County’s current 6.75% sales tax would cost $533.93 if the quarter-cent sales tax referendum passes and the rate rises to 7%.

That’s an increase of $1.25.

For a $65 dinner for two, the difference between the two tax rates would amount to just 16 cents.

The proposed increase would also bring Macon County in line with most of its neighbors. Of the nine westernmost counties in North Carolina, Macon is the only one that has not adopted a quarter-cent sales tax increase.

Cherokee, Clay, Graham, Swain, Jackson, Haywood, Madison, and Buncombe counties all have a 7% sales tax rate. Nearby Rabun County, Georgia, has an 8% rate, while Atlanta’s rate is 8.9%. In Pigeon Forge and Gatlinburg, Tennessee, the rate is 9.75%.

But Baste believes the referendum’s wording, rather than the size of the proposed increase, may help explain why voters have rejected it in the past. Macon County voters have twice voted on the quarter-cent sales tax increase and Baste believes opposition has been driven in part by the measure’s vague language on the ballot.

The official wording reads, “Local sales and use tax at the rate of one-quarter percent (0.25%) in addition to all the other state and local sales and use taxes.” Voters are then asked to check either “For” or “Against.”

Without additional context, Baste said, it can be difficult for voters to understand exactly what the referendum would do. The measure’s placement at the very end of the ballot could also contribute to confusion or cause voters to overlook it altogether, he said.

MQPC has not taken an official position on the referendum. Instead, its goal is to ensure voters have the information they need to make an informed decision before early voting and Election Day.

Capitalizing on tourist dollars

One potential benefit of the quarter-cent sales tax increase is that it could allow the county to capture more revenue from the influx of tourists who visit the region each year, without relying solely on property taxes. Because the sales tax applies to taxable purchases, visitors would contribute to county revenue alongside residents.

Macon County already collects a 3% occupancy tax on gross receipts from short-term visitor accommodations. But state law requires at least two-thirds of those proceeds to be spent on advertising, marketing, and promoting travel and tourism.

The law also prohibits using occupancy tax revenue for services primarily benefiting residents. Specifically, the money cannot be used for solid waste, water supply, fire protection, law enforcement, affordable housing, or education, among other services unless authorized by local ordinance.

That leaves the county with limited options for using tourism-related revenue to pay for the services residents rely on.

With visitor spending in Macon County increasing 11% in 2025 , a sales tax increase could provide another way to generate revenue from the growing tourism economy.

And according to Baste, that additional revenue could be spent on things like life-saving equipment for EMS employees, better resources for the county animal shelter, capital improvement projects, and additional support for the county’s teachers.

Quarter-penny skeptics

Still, some say any tax increase is too much for Macon County residents who are already struggling with the cost of living.

“People are taxed to death,” said commissioner John Shearl. “A lot of people are hurting and they can’t pay anymore.”

Shearl said constituents have been reaching out to him in opposition to the tax increase, and he understands where they are coming from.

At the Oct. 13 meeting, Shearl expressed concerns with Baste that even though it wouldn’t be a raise in property taxes, it would still effectively raise taxes for landowners in the county.

Baste said approximately 40% of the estimated $2.4 million revenue generated by the sales tax increase would be paid by visitors and 60% would be paid by Macon County residents.

Shearl asked what proportion of the 60% of residents were landowners and suggested if the committee could find a way to target only non-landowners with the sales tax increase it would be more successful.

“What I’m proposing is, if you want this to pass — and I’m not saying it’s not going to — to offset what the property owners would pay in the increased sales tax,” he said. “And then, when you create revenue, you’re not targeting property owners.” 

Baste mentioned that approximately 45% of property owners have a primary residence outside of the county, and that the quarter-cent sales tax is directly not targeting that population.

In a later interview with The Smoky Mountain News, Baste reasoned that the quarter cent sales tax would actually relieve some of the tax burden the county places on property owners.

“This does relieve some of the stress [from raising property taxes] by providing us with some additional revenue that’s not going to hurt a whole lot on an individual level but will help a whole lot by giving us between $2.2 and $2.4 million dollars a year,” she said.  

Crossing the partisan divide

While Baste refrained from offering any predictions on whether the sales tax referendum would pass, she did say that she’s proud of the efforts the MQPC put forth to educate voters.

For Baste, the committee’s work offered a glimpse of how people with different political views can find common ground on a local issue.

She said the experience reminded her of the community she values in Macon County: people who care about their neighbors and their home, even when they don’t agree on everything.

The sales-tax measure is now in voters’ hands, but Baste said the collaboration itself has left her hopeful.

“We care about Macon County deeply,” she said. “And I think that that is hope for the future for all of us.”