RES-2008-021 Resolution Regarding Planned Uses of Land Transfer Tax Proceeds

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APPROV~3/06/08 3 ORANGE COUNTY BOARD OF COMMISSIONERS Statement of Intent Regarding Uses of Land Transfer Tax Proceeds Based on discussion at the February 72, 2008 work session, the following represents a starting point for establishing the formal position of the Orange County Board of Commissioners regarding the prospective uses of the proceeds from a .4 % land transfer tax, if approved by Orange County voters: 1. The Orange County Board of Commissioners believe: • there are significant pressing school, park, and other County capital needs that are precipitated by growth pressures and are currently unfunded or underfunded in the County's 10 Year Capital Investment Plan • it is important to provide Orange County taxpayers with some relief from the pressure to raise property taxes to address those, and other, County needs • revenue from the land transfer tax alternative made available to counties by the General Assembly during the 2007 Session provides an opportunity to gain some measure of that relief • if the County Commissioners do not have voter approval to levy a .4% land transfer tax, that inevitably will lead to property tax increases to meet capital needs that MUST be funded • while the Board of Commissioners cannot say that property taxes will never be raised, the availability of an alternative revenue source through the land transfer tax does mean that property tax rates would be lower than they otherwise would be without the land transfer tax • capital funding from the land transfer tax must be allocated in an equitable manner between projects in the County's two school systems and other County capital projects • funding from the land transfer tax should be allocated to already identified projects the County MUST accomplish, not to new projects that haven't been previously contemplated • funding from the land transfer tax could be allocated to renovation projects as well as to new facilities ' • if additional funding does not come from the land transfer tax, it will inevitably come from the property tax for projects that MUST be done, and non-mandated projects will either be deferred or not completed 2. Therefore, the Orange County Board of Commissioners hereby states its intention to use the proceeds from the land transfer tax for currently unfunded or underfunded school and park projects. Proceeds from the land transfer tax in later years will be used to address County Commissioner priorities as established in the County's 10 Year Capital Investment Plan.