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18 <br />Exhibit A <br />AN ACT TO AUTHORIZE ORANGE COUNTY TO LEVY AN EXCISE TAX ON <br />INSTRUMENTS CONVEYING REAL PROPERTY IN ORANGE COUNTY <br />The General Assembly of North Carolina enacts: <br />Section 1. Excise Tax. <br />(a) Authorization. The Orange County Board of <br />Commissioners may, by resolution, levy an excise tax on <br />instruments conveying certain interests in real property in <br />Orange County. The tax imposed may not exceed one dollar ($1.00) <br />on each one hundred dollars ($100.00) or fraction thereof of the <br />total consideration or value of the interest conveyed, including, <br />in the case of a sale, the value of any lien or encumbrance <br />remaining on the property at the time of sale. This tax is in <br />addition to the tax levied by Article 8E of Chapter 105 of the <br />General Statutes. <br />The value of a lease subject to this tax shall be computed <br />on the basis of the present value of the fixed lease payments <br />and, if the lease payments are based in whole or in part on the <br />lessee's receipts, the estimated amount of the lessee's receipts. <br />Based upon the recommendation of the Orange County Finance <br />Director, the Board of Commissioners shall, at least annually, <br />set the discount rate to be used to determine the present value <br />of lease payments. Such determination shall be conclusive. <br />(b) Scope. A tax levied under this section applies to all <br />instruments conveying an interest in real property in Orange <br />County except an instrument: <br />(1) conveying an interest in real property from the United <br />States, the State, or a political subdivision of the <br />State; <br />(2) recording a lease for a term of 10 years or less, <br />unless: <br />a. the lease gives the lessee an option to renew the <br />lease for a period that, when added to the term of <br />the lease, exceeds 10 years; <br />b. the lease is for substantially the same property <br />and is between the same parties as a lease <br />previously recorded, and the term of the new <br />lease, when added to that of the previous lease, <br />exceed 10 years; or <br />c. the lease requires or permits the property to be <br />transferred to the lessee for less than the fair <br />market value of the property; <br />