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<br /> POLICY FOR INSERTION INTO THE POLICY MANUAL <br /> <br /> MEETING . DATE: May 29, 1997 NUMBER: <br /> EFFECTI VE DATE: May 29, 1997 REVISIONS: <br />POLICY: <br />PAYMENTS IN LIEU OF TAXES - COTNTY OWNED PROPERT <br />County owned real property (land and buildings) is exempt from ad <br />valorem property taxes as provided in Article V, Section 2(3) of <br />the North Carolina Constitution and North Carolina General <br />Statutes § 105-278.1. From time to time Orange County owned real <br />property is leased to persons using the property for private <br />purposes not related to County programs or services. Typically <br />these tenants are using the property as part of the for profit <br />business activities of the tenant. This policy confirms and <br />ratifies the previous unwritten policy of Orange County to charge <br />such tenants payments in lieu of taxes in amounts equivalent to <br />the amount of property tax that would otherwise be lawfully <br />• assessed against the leased premises were it taxable by the <br />County and by any municipality in which the leased premises is <br />located. Requiring these tenants to make payments in lieu of <br />taxes serves two important purposes. One, it eliminates the <br />competitive advantage accruing to a tenant of County owned real. <br />property that could result from a rental agreement not requiring <br />tenant contribution of property taxes. Two, it provides the <br />County and any municipality wherein the leased premises is <br />located with money equivalent to taxes as a contribution to the <br />cost of public services provided by the County and any <br />municipality wherein the premises is located which public <br />services benefit the tenant of County owned space in the same way <br />that they benefit a tenant of privately owned leased space. <br />lsg-9 <br />realprop.pol <br /> <br />