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GRANGE COUNTY <br />BOARD CF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: April 5, 2011 <br /> <br />Action Agenda <br />Item No. <{- ° q <br />SUBJECT: Resolution Calling for a November 8, 2011 Special Advisory Referendum <br />Concerning the Levy of aOne-Quarter Cent (1/4¢) County Sales and Use Tax <br />DEPARTMENT: Manager & Financial Services PUBLIG HEARING: ~YlN} No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />1) Resolution Calling for a November 8, Frank Clifton, County Manager, 245-2300 <br />2011 Special Advisory Referendum Clarence Grier, Financial Services <br />Concerning the Levy of a One- Director, 245-2453 <br />Quarter Cent (1/4¢) County Sales Michael Talbert, Financial Services, 245- <br />and Use Tax 2153 <br />2) North Carolina General Statute -Article <br />46 One-Quarter Cent (1/4¢) County <br />Sales and Use Tax <br />3) 3/29/11 Memorandum from Board of <br />Elections Director Tracy Reams <br />PURPOSE: To consider a Resolution Calling for a November 8, 2011 Special Advisory <br />Referendum Concerning the Levy of aOne-Quarter Cent (1/4¢) County Sales and Use Tax. <br />BACKGRGUND: Local governments in North Carolina have historically relied heavily upon ad <br />valorem property taxes as their major source of revenue. For a number of years, the Urange <br />County Board of County Commissioners, the Noah Carolina Association of County <br />Commissioners and many other local governing boards across the state lobbied the North <br />Carolina General Assembly for legislative authority tv expand counties' revenue options, <br />thereby lessening counties' reliance on property taxes. <br />During the 2001 legislative session, the North Carolina General Assembly granted county <br />boards of commissioners the authority to levy, subject to voter approval, an additional one- <br />quarter cent X114¢} county sales and use tax referred to as the Article 46 sales and use tax. As <br />authorized by the General Assembly, the Article 46 sales tax cannot apply to consumer food <br />purchases. There is also no legislative requirement, ar mechanism, for counties to share the <br />additional one-quarter cent sales tax with municipalities. <br />Between November 1, 2007 and December 31, 2010,11 referendums on the quarter-cent sales <br />tax have been held in 53 counties. Cf those 11, 18 were approved and 59 failed. This year one <br />referendum has been held to date and the quarter-cen# sales tax was approved in Halifax <br />County on February 1, 2011. There are two referendums scheduled for the remainder of 2011 <br />- Cabarrus County is scheduled for May 11, 2011 and Buncombe County is scheduled for <br />November 8, 2011, <br />