Agenda - 08-19-2010 - 2 - Laserfiche WebLink

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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: "Collection of the tax, and liability therefore, must begin and continue only on and after the first day of a calendar quarter, as set by the Board of County Commissioners in the resolution levying the tax. In no event may the tax be imposed, or the tax rate changed, earlier than the first day of the second succeeding calendar month after the date of the adoption of the resolution. The County must give the Secretary at least 90 days advance notice of a new tax levy or rate change." If the voters of Orange County approve the Special Advisory Referendum on November 2, 2010 and the Board approves a resolution to levy the tax before December 31, 2010, the new One- Quarter Cent (1/4¢) County Sales and Use Tax could begin on April 1, 2011. FINANCIAL IMPACT: There is no financial impact associated with holding a public hearing on potential uses for aOne-Quarter Cent (1/4¢) County additional Sales and Use Tax. If a majority of voters approve the sales tax and the Board of Commissioners implements the sales tax on April 1, 2011, the Article 46 sales and use tax would generate approximately $2,300,000 annually for the County. The sales tax would generate approximately $575,000 during the remainder/last quarter of FY 2010-11. RECOMMENDATION(S): The Manager recommends the Board: 1) Review and discuss proposed uses of the potential sales tax revenues; 2) Provide direction to staff on next steps relating to any public education efforts to ensure voters are knowledgeable regarding the ballot question in the resolution; and 3) Provide direction to staff as to language to be included in a resolution addressing the potential uses for consideration at the Board's September 2, 2010 regular meeting.