Agenda - 08-17-2010 - 6d - Laserfiche WebLink

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2 authorized by the General Assembly, the Article 46 sales tax cannot apply to consumer food purchases. There is also no legislative requirement, or mechanism, for counties to share the additional one-quarter cent sales tax with municipalities. On May 4, 2010 voters in Duplin, New Hanover and Onslow counties approved the additional one quarter cent (1/4¢) county sales and use tax. This brought the total to 15 out of 100 counties that have approved the Article 46 one quarter cent (1/4¢) county sales and use tax. At least 10 counties will a hold referendum on the quarter-cent sales tax this year. The Board held a public hearing on June 1, 2010 to solicit comments from the public on a possible November 2, 2010 Special Advisory Referendum concerning the Levy of a One- Quarter Cent (1/4¢) County Sales and Use Tax. The two speakers encouraged more opportunities .for public input and for the Board to consider additional funding for Human Services considering the current economic conditions. After the public hearing the Board discussed several different options for the potential new revenue source including Economic Development, County Capital needs, Schools needs, older schools, Libraries and Debt Service. The Board discussed the potential referendum and requested that staff schedule a decision item on a possible November referendum at the Board's June 15, 2010 regular meeting. At the June 15, 2010 Board meeting, the Board considered a resolution regarding a possible November 2, 2010 Special Advisory Referendum concerning the Levy of aOne-Quarter Cent (1/4¢) County Sales and Use Tax. Three speakers encouraged the Board to consider using the possible additional funding for Human Services, Debt Service, and Economic Development, a permanent meeting place for the Board, Schools and the immediate needs of the County. None of the three speakers were opposed to the additional one-quarter cent sales tax and supported the proposed sales tax in lieu of a property tax increase. The Board discussed several different options for the potential new revenue source including Economic Development, County Capital needs, Schools needs, older schools, Libraries and Debt Service. The Board approved the attached resolution calling for a November 2, 2010 Special Advisory Referendum concerning the Levy of aOne-Quarter Cent (1/4¢) County Sales and Use Tax. Staff was instructed to schedule a Public Hearing for August 17, 2010 to solicit comments from the public on potential uses for aOne-Quarter Cent (1/4¢) County additional Sales and Use Tax. The Board may want to consider discussing at this meeting or a future meeting the public education options to ensure voters are knowledgeable regarding the ballot question. The North Carolina Association of County Commissioners recommends that counties undertake a public education campaign to educate voters. County staff envisions any education initiative to be similar to those the County has undertaken for past voter approved bond referenda. The Board approved an amount not to exceed $40,000 for a public education campaign for the November 2, 2010 referendum. If a majority of voters approve the Article 46 sales tax referendum, the Board will be required to give ten (10) days public notice of the Board's intent to levy the tax. The Board would then hold a required public hearing and consider a new resolution to actually levy the tax. The Board must adopt that additional resolution in order for the tax to take effect. On July 17, Senate Bill 1177 was approved and signed into law. This bill amended GS 105-466 Levy of Tax (c) Collection of tax to read as follows: