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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: June 1, 2010 <br />Action Agenda <br />Item No. 6 -b <br />SUBJECT: Public Hearing on Possible November 2, 2010 Special Advisory Referendum <br />Concerning the Levy of a One - Quarter Cent (1/4¢) County Sales and Use Tax <br />DEPARTMENT: Manager & Financial Services PUBLIC HEARING: (Y /N) Yes <br />ATTACHMENT(S): <br />Draft Resolution Scheduling a Special <br />Advisory Referendum Concerning the <br />Levy of a One - Quarter Cent (1/4¢) <br />County Sales and Use Tax (For <br />Information Purposes Only) <br />North Carolina General Statute - One - <br />Quarter Cent (1/4¢) County Sales <br />and Use Tax <br />INFORMATION CONTACT: <br />Frank Clifton, County Manager, 245 -2300 <br />Clarence Grier, Financial Services <br />Director, 245 -2453 <br />Michael Talbert, Financial Services, 245- <br />2153 <br />PURPOSE: To conduct a public hearing to solicit comments from the public on a possible <br />November 2, 2010 Special Advisory Referendum Concerning the Levy of a One - Quarter Cent <br />(1/4¢) County Sales and Use Tax. <br />BACKGROUND: Local governments in North Carolina have historically relied heavily upon ad <br />valorem property taxes as their major source of revenue. For a number of years, the Orange <br />County Board of County Commissioners, the North Carolina Association of County <br />Commissioners and many other local governing boards across the state lobbied the North <br />Carolina General Assembly for legislative authority to expand counties' revenue options, <br />thereby lessening counties' reliance on property taxes. <br />During the 2007 legislative session, the North Carolina General Assembly granted county <br />boards of commissioners the authority to levy, subject to voter approval, an additional one - <br />quarter cent (1/4¢) county sales and use tax. As authorized by the General Assembly, the new <br />sales tax cannot apply to consumer food purchases. There is also no legislative requirement, <br />or mechanism, for counties to share the additional one - quarter cent sales tax with <br />municipalities. <br />On May 4, 2010 voters in Duplin, New Hanover and Onslow counties approved the additional <br />one quarter cent (1/4¢) county sales and use tax. This brings the total to 15 out of 100 counties <br />that have approved the one quarter cent (1/4¢) county sales and use tax. <br />