Agenda - 03-15-2011- 6a - Laserfiche WebLink

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[ ]FOR [ ]AGAINST County Sales and Use Tax Local sales and use tax at the rate of one-quarter percent (0.25%) in addition to all other State and local sales and use taxes. The attached draft referendum resolution does not include language regarding the possible uses of the potential funds from the one-quarter cent sales tax. It is proposed that the Board consider action on the attached referendum resolution at its April 5, 201 ~ regular meeting. [t is also ,proposed, in preparation for passible Board approval of the referendum resolution at the April 5, 2011 regular Board meeting, that the Baard schedule a public hearing for that same meeting on the possible uses for the potential proceeds from the additional sales tax if approved by the voters. The Board could then discuss the possible uses far the potential funds at either its April 7 or April 12 work session and be prepared to act at the Board's April 19, 2011 regular meeting on a second resolution regarding the planned uses of the potential sales tax funds. Pending approval of the attached referendum resolution, the Board may also want to consider discussing any public education efforts 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. The County did undertake a public education effort for the previous November 2010 sales tax referendum. It is proposed that a potential public education effort be considered for discussion at either the April 7 or April 12 Board work session and Board action as appropriate be considered at the April 19, 2011 regular meeting, If the Board of Commissioners does decide to move forward with a referendum and a majority of voters approve the sales tax referendum, the Board will be required to give ten X10} days public notice of the Board's intent to levy the tax. The Baard 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. Based on election certification timeframes, the Board of Commissioners' regular meeting schedule, and timing and other requirements associated with the North Carolina Department of Revenue and North Carolina General Statute 105-466, the earliest date the additional sales tax could became effective following a November S, 2011 referendum would be April 1, 2012. FINANCIAL IMPACT: There is no financial impact associated with conducting a public hearing to solicit comments from the public on a possible November 8, 2011 Special Advisory Referendum Concerning the Levy ofaOngi-Quarter Gent X114¢} County Sales and Use Tax, if a majority of voters approve the sales tax, and the Board of Commissioners implements the sales tax as soon after the November S, 2011 referendum as possible, it could have an effective date of April 1, 2012. Approximately $625,000 would be generated during the remainderllast quarter of FY 2011-12. As an additional revenue source in the following years, the sales and use tax would generate approximately $2,500,000 annually for the County.