Serving Boone, Blowing Rock, Banner Elk, and other towns of the North Carolina High Country | Founded 05-05-05

February 1, 2007 issue

What’s the Deal with the Checkoff Box on Your Tax Return?

Story by Corinne Saunders

A small box on state income tax forms may make some people pause in momentary confusion and may not even get a glance from others.

The box is labeled N.C. Public Campaign Fund, and it appears, at first glance, to be asking for a personal donation of $3 to go to a fund for candidates.

“Most people have the wrong impression because they think it’s costing them personally, or they’re so fed up with politics, they say ‘no,’” said Ronnie Woodie, a tax consultant of eight years.

About 15 to 20 percent of his clients mark yes on the checkoff box, Woodie said.

Checking yes on the box, however, does not make you owe more taxes to the state, nor does it mean you will receive any less of a refund. It indicates that you agree with putting a certain portion of public tax dollars toward a fund for North Carolina’s appellate level judicial candidates. The checkoff box for presidential candidates on your federal return works the same way.

“The money doesn’t come out of your personal taxes; it comes out of general tax revenue,” Woodie said.

Three dollars of general tax revenue is transferred to the fund for each person who checks yes.

The N.C. Public Campaign Fund was created as part of the Judicial Campaign Reform Act that was passed in October 2002.

The goal of this public fund is to help make judicial races fairer by providing financial support to qualified candidates who agree to certain campaign spending limits. Candidates must raise a set amount of money before applying to use the fund, and the law provides for additional “rescue money” if a non-publicly financed candidate significantly outspends a candidate who chose to use the fund.

The Public Campaign Fund also pays for North Carolina voter guides that provide information about the experience and qualifications of candidates running for the Supreme Court and Court of Appeals.

Twelve of the 16 candidates in 2004, and 8 of the 12 candidates in 2006 chose to use the program.

The fund depends upon private donations, voluntary contributions of $50 from attorneys filing their annual privilege license renewal forms and citizens marking yes on their tax forms.

For more information about the checkoff box or the N.C. Public Campaign Fund, click to www.ncjudges.org or www.democracy-nc.org/improving/checkoff.shtml.