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Commissioner Halkiotis presented to Lorraine Parker a plague from the Recreation and Parks Advisory Committee. E. REPORTS 1. DAIRY CATTLE PRICING GUIDELINES County Manager .John Link reported to the Board on pricing of dairy cattle. Dairy cattle held for the production of milk are taxable because they fall under the classification of manufacturer's equipment. Tax Assessor Kermit Lloyd explained the procedure he followed in determining the value of dairy cattle. He stated that no other county in-North Carolina followed the principals of appraisal, in determining this value in accordance with North Carolina law. His recommendation is that the Board of County Commissioners develop a resolution requiring the N.C. Department of Revenue to determine on a yearly basis the recommended values far all taxable livestock on a statewide basis; to eliminate inequities of livestock valuations across county lines. This resolution should be submitted to the Local General Assembly Delegation and to the N.C. County Commissioners Association Legislative Goals Committee. Commissioner Halkiotis expressed a concern with the classification of dairy cattle as equipment and suggested that the classification needs to be done away with. Kermit Lloyd explained that a lot of the rural counties depend on this tax base and were against deleting dairy cattle from taxation. All taxes paid tv a county for dairy cattle can be deducted from the state income taxes. Discussion ensued on the pricing of dairy cattle and the Board agreed that, although the pricing was done in accordance with State law, that the cows were all valued as coming into the herd when some were going out of the herd. ~:..~, ;, ROBERT NICHOLS distributed information to the Board. He referred to the information and to the discrepancy in the legal opinions he received-:-; from various attorneys and people in Raleigh as to what the law says. He stated his opinion is that livestock is exempt from taxation. County Attorney Geoffrey Gledhill indicated that in the Statute a ` farmer is classified as a manufacturer and thereby cows used in the pro- duction of milk would be taxable. The solution is a legislative one. He noted that if the method Lloyd used in putting a value on a herd has flaws in it that the dairy farmers would have recourse through Lloyd and recourse through the Equalization and Review-Board. Chair Marshall reiterated the situation and indicated that a decision to change this taxation would not be made this evening. Every effort will be made to come up with a solution that will be fair and within the law. Nichols distributed his "Plan B" which outlined what surrounding counties are taxing cattle. He noted that the assessed value last year far cattle in Orange County was $2,966,295 which resulted in $17,597 in taxes. He asked that if cattle could not. be exempt from taxation that the value be more in line with the surrounding counties in which the farmers do business. NO ACTION WAS TAKEN ON THIS ITEM. 2. ENVIRONMENTAL SERVICES CONSOLIDATION AT THE STATE LEVEL This item will be placed on the next agenda. 3. CAPACITY USE DESIGNATION - PLANNING BOARD POSITION Planning Board Chair Barry Jacobs presented for the Board's information the position of the Planning Board in regard to the proposed capacity use designation for the Eno River. A statement will be prepared -" as general support for the need for a capacity use designation or a management plan which would accomplish the same purposes, and, if the State