Charlotte has the highest sales tax in North Carolina.

Of the 100 counties in North Carolina, 91 have a 6.75 percent sales tax and eight have a 7 percent sales tax, according to research by the N.C. Department of Revenue. Only Mecklenburg County, home to Charlotte, has a 7.25 percent rate.

The higher rate is because of a local 0.5 percent sales and use tax for public transportation.

In 1997, Charlotte Mayor Pat McCrory lobbied the legislature to allow Mecklenburg to charge the additional half-cent sales tax, which passed in a referendum the following year.

The tax raises about $77 million a year to pay for buses and the newly opened Lynx light rail line. 

In 2007, a referendum to repeal the transit tax was defeated.

Republican gubernatorial candidate Fred Smith is running a radio ad attacking rival Pat McCrory on a light-rail project in Charlotte, David Ingram reports.

What the ad says: Narrator: "North Carolina taxpayers can’t afford Charlotte Mayor Pat McCrory. On McCrory's watch as mayor, they overspent the budget for light rail by over $200 million. And it was reported in The Charlotte Observer that McCrory said one attraction of being governor was that he might better aid Charlotte from that office. We need a governor who will work for all of North Carolina." Smith: "I'm Fred Smith, and over the past year, I've had a conversation with you on my 100-county barbecue tour. I know you're tired of corruption in Raleigh, that you want honest and open government. You work hard to put gas in your car and food on the table. State government’s broken. You’re not getting your money’s worth for the $22 billion you send to Raleigh. I promise you I'll make decisions on state government like you make decisions on your family budget. It’s time for a change in leadership. On May 6, I'd appreciate your vote. I’m Fred Smith, candidate for governor, and my campaign sponsored this ad."

The background: The estimated cost of the 9.6-mile Lynx Blue Line between south Charlotte and uptown jumped from $227 million in 1998 to $463 million when it was completed last year.

City officials blamed contractors for much of the overruns and for related design flaws, and the city council replaced Parsons Transportation Group as the construction manager. McCrory, first elected mayor in 1995, was not directly involved in the problems. He called for a complete review of the oversight of the rail line.

The Observer article mentioned in the ad alludes to a comment by McCrory that "one area that's making me evaluate the office" of governor is "the continued lack of respect for Charlotte and other metropolitan areas." He was referring to funding for courts, transportation and other services traditionally provided by state government.

Is the ad accurate? Technically yes, but it leaves out plenty of context.

The ad is precise in saying the cost overruns took place "on McCrory's watch," though it might leave listeners with the incorrect impression that McCrory was directly responsible. The paraphrase of McCrory's quote fails to convey the same meaning that the quote does.

A new radio ad attacks Pat McCrory over Charlotte's light rail.

The minute-long spot by rival Fred Smith begins by attacking the budget for the recently opened Lynx Blue Line in Charlotte.

"North Carolina taxpayers can't afford Charlotte Mayor Pat McCrory," says a female narrator. "On McCrory's watch as mayor, they overspent the budget on light rail by more than $200 million, and it was reported in the Charlotte Observer that McCrory said one attraction of being governor was that he might better aid Charlotte from that office."

Midway through the ad, Smith begins speaking. He says that voters are not getting their "money's worth" from state government.

"It's time for a change in leadership," he says.

Pat McCrory says light rail isn't for everyone.

The Republican gubernatorial candidate told Dome in a recent interview that the Lynx Blue Line in Charlotte has been a success, but he doesn't think every part of the state needs — or wants — its own rail-based transit.

"It's not suited for all parts of our state or even all parts of the city," he said. He would not say whether the Triangle, Greensboro or other North Carolina cities need it, saying that is a local decision.

In some areas, he said that light rail can help promote economic development, give citizens an alternative to congested roads and help the environment.

He defended the Charlotte system against conservative critics by noting that a recent referendum on the sales tax that partially funds it was approved by more than 70 percent of voters.

He also said he didn't decide to back rail by "putting my finger up in the air."

"I did it because of leadership," he said. 

A delegation of Raleigh officials rode Pat McCrory's pet project this week.

Sixty civic leaders and politicians traveled to Charlotte to ride the Lynx Blue Line, the 9.6-mile transit line a decade in the making that launched in November.

The $472 million trains have been packed with 12,000 riders a day so far, well above forecasts, Bruce Siceloff reports. It's already spurred new development expected to increase city property tax revenue by $8.5 million per year by 2011.

The project was applauded by leaders as diverse as state Rep. Deborah Ross, a Democrat, and Tony Gurley, a Republican on the Wake County board of commissioners. They also saluted the city—and McCrory's—efforts to defeat a repeal of the half-cent sales tax that funds the project.

"It was beautifully done—and, frankly, Wake County struggles with that," said Ross.

Still, McCrory rarely talks about the train—not to mention the tax—on the campaign trail in the Republican primary, perhaps because of fear of criticism from fiscal conservatives.

Would Pat McCrory's advocacy for mass transit hurt him in the Republican gubernatorial primary?

Already, conservative libertarian blogger Max Borders has questioned whether the Charlotte mayor's support for a sales tax for transit and a light rail line means he is a "big government Republican."

If money fell like manna from heaven and central planning worked, it might be a ok. But Charlotte's light rail is a massive error IMHO, where that shiny new toy obscures the tremendous costs spread out over the state and even the rest of the country (onto people who will likely never see it or ride it).

Borders also questions McCrory's involvement in the Charlotte Bobcats arena, arguing that the mayor is going to have to "prove his credentials" as a fiscal conservative.

Of course, this is all assuming that McCrory is actually going to run.

One of Pat McCrory's biggest accomplishments in office has been a transit tax.

In 1997, the longtime Charlotte mayor lobbied the legislature to allow Mecklenburg County to charge an additional half cent.

That August, the legislature approved a bill to allow a referendum on the sales tax, but only after adding a provision allowing 14 rural counties to charge a $5 vehicle registration fee.

McCrory was elected for a second term a few months later and staked his political reputation on passing the transit tax. In November of 1998, Mecklenburg voters approved it by 58 percent.

The money—which now amounts to about $77 million a year—is used to pay for buses and a recently opened light-rail line.

The tax was challenged in a repeal last November, but 70 percent of voters backed keeping it, with support especially high among black voters and newcomers to the city. The Lynx Blue Line rail line began serving riders two weeks later.