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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: June 2, 1998 <br />SUBJECT: Tobacco Allotment Taxes <br />DEPARTMENT: Tax Assessor <br />ATTACHMENT(S): <br />UVAB Manual Extract <br />NC Court of Appeals Opinion <br />Statutory Authority to Tax Tobacco Allotments <br />Orange County Agricultural Summary <br />1996 Top Ten NC Counties - Tobacco <br />Action Agenda <br />Item No. <br />PUBLIC HEARING: (Y/N) <br />BUDGET AMENDMENT: (Y/N) <br />INFORMATION CONTACT: <br />John Smith, ext 2100 <br />TELEPHONE NUMBERS: <br />Hillsborough <br />732 -8181 <br />Chapel Hill <br />968 -4501 <br />Durham <br />688 -7331 <br />Mebane <br />227 -2031 <br />PURPOSE: To receive a report on taxes on tobacco allotments. <br />BACKGROUND: A recent North Carolina Court of Appeals decision has drawn attention to the <br />issue of taxes on tobacco allotments. A tobacco allotment specifies the maximum acreage that can <br />be planted on a farm in any given year. The attached extract from the Use Value Advisory Board <br />(UVAB) manual provides more detail on the nature of allotments. <br />It is our understanding that there are 86 counties which have tobacco allotments and 14 which do <br />not. Of the 86 which do, 61 reportedly do not tax tobacco allotments and 25 do. Orange County <br />does not tax its 4.27 million in tobacco allotments. <br />At the Board's request, County Assessor John Smith will make a brief oral report about the tax <br />aspects of the tobacco allotment program, respond to the Board's question, and perform any <br />additional research that the Board may request. <br />RECOMMENDATION(S): The Manager recommends that the Board receive the report as <br />information. <br />