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ATTACHMENT 2 <br />ORANGE COUNTY PLANNING & INSPECTIONS DEPARTMENT <br />Craig N. Benedict, A.ICP, Director <br />~bng` ~ icy <br />Comprehensive Planning ® ?~`` 306F Revere Road <br />(919) 245-2589 u ~ P O Sox 8181 <br />(919) 644-3002 (FA.X) Hillsborough, <br />www.co.orange.nc.us .~;~f~ ~,t,~~°° North Carolina, 27278 <br />MEMORANDUM <br />Date: Apri15, 2011 <br />To: Orange County Board of County Commissioners <br />Via Frank Clifton, County Manager <br />CC: Craig Benedict, Planning Director <br /> Donna Baker, Clerk to the BOCC <br />From: Mila Vega, Land Use /Transportation Planner <br />Subject: Additional Information about the $7 Vehicle Registration Tax <br />The following is a summary of topics related to the potential enactment of the new $7 Vehicle <br />Registration Tax/Fee. <br />Summary <br />Session Law 2009-527 (also known as House Bill 148) authorizes a collection of an additional vehicle <br />registration tax in the total amount often dollars: <br />Estimated Revenue <br />• $7 -County $770,000 <br />• $3 -Triangle Transit (TTA) $330,000 <br />Total $10 Total $1,100,000 <br />The funds may be used to operate a public transportation system, including financing, constructing, <br />operating, and maintaining a transit system, including existing services. It has been assumed that these <br />would come "online" together. <br />The Board of County Commissioners (BOCC) must pass a resolution in order to levy the $7 tax. There is <br />no specific timeline to pass the resolution; it can be passed at any time. The tax becomes effective on the <br />date set by the BOCC in the resolution levying the tax. The effective date must be the first day of a <br />month. The effective date may not be earlier than the first day of the sixth calendar month after the BOCC <br />adopts the resolution. In other words, there is a least a six months delay before the County can begin <br />collecting the tax after the resolution is passed. <br />Currently, Triangle Transit collects a $5 vehicle registration fee; the new increase will bring it up to $8. <br />The additional Triangle Transit $3 fee is intended to restore the buying power of the original $5 fee to its <br />purchasing power level when it was first enacted in the 1990s. There are no specific requirements <br />associated with the fee increase other than it should be used to support transit. According to Triangle <br />Transit, it is likely to be used on either new/enhanced bus service or advancing planning and design of the <br />rail projects. The revenue assumption in 2012 is $330,000. <br />8 <br />