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enacted because of the different wording for the sales tax to become effective December 1, 2002. It is <br /> projected that the County may realize about $1.8 million in revenue from December 2002 through June 2003. <br /> Chair Jacobs pointed out that this is not a sales tax on food (unprepared food). Prepared food is not <br /> exempt. The projections are that over the long run it will generate more revenue for the County then it was <br /> currently receiving due to the inventory and intangibles tax. It will take more than three years to make up the <br /> monies, which were withheld by the State that were due to Orange County. He said that we have put in effect <br /> freezes on hiring and on capital projects so that there would not be any additional tax burden on the citizens this <br /> year. <br /> A motion was made by Commissioner Brown, seconded by Commissioner Halkiotis to approve and <br /> authorize the Chair to sign a Resolution Levying the Third One-Half Cent Local Government Sales and Use Tax <br /> and Prescribing the Method of Distribution of the Proceeds Within Orange County as stated below: <br /> Commissioner Gordon asked John Link about the legislation that was passed by the General <br /> Assembly to try and protect County revenues in the future. She would also like to know the County's position on <br /> joining or not joining the lawsuit that some counties filed. <br /> John Link said that they would report on this at a later date. He said that there is assurance that, by <br /> enacting a sales tax, it cannot be taken away from local government. However, there are other revenues that are <br /> not protected and we still need to be vigilant about school funding and human service funding. He said that he <br /> forgot to mention that there was State school construction funding withheld of about $700,000 for both school <br /> districts. <br /> Chair Jacobs said that the Board would get a full report from staff at the Work Session on October 21 sr <br /> to address the impacts of the budget cuts on other programs. <br /> Commissioner Brown asked for information about how this impacts projects that we share with the <br /> Town of Chapel Hill like Southern Park, etc. <br /> A RESOLUTION LEVYING THE THIRD ONE-HALF CENT(1/2¢) <br /> LOCAL GOVERNMENT SALES AND USE TAX AND PRESCRIBING <br /> THE METHOD OF DISTRIBUTION OF THE PROCEEDS <br /> WITHIN ORANGE COUNTY <br /> WHEREAS, the General Assembly has authorized the Orange County Board of Commissioners to levy a one-half <br /> percent (1/2%) local sales and use tax by enacting N.C.G.S. 105-517(b) in Section 34.14(a) of Session Law 2001- <br /> 424, as amended by S.L. 2002-123, "An Act to Accelerate the Additional One-half Cent (1/2¢) Local Option Sales <br /> and Use Tax and to Make Conforming and Technical Changes," and <br /> WHEREAS, the Orange County Board of Commissioners gave proper public notice of the Board's intent to <br /> consider this resolution, as required by Section 10 of S.L. 2002-123, and <br /> WHEREAS, Orange County has lost approximately $3,171,582 in funds made available by the State of North <br /> Carolina to replace revenue lost because of legislative action: (1) to repeal sales taxes imposed on purchases <br /> made with Food Stamps, (2) to repeal property taxes imposed on inventories held by manufacturers, retailers and <br /> wholesalers, (3) to repeal taxes on intangible personal property, and (4) to reduce taxes levied on residential <br /> property owned by low-income elderly taxpayers, and <br /> WHEREAS, the Orange County Board of Commissioners hereby finds that, particularly in light of the circumstances <br /> cited herein, the levy of "The Third One-Half Cent (1/2¢) Local Government Sales and Use Tax" is necessary to <br /> adequately finance the operations of the county and the cities and towns herein. <br /> NOW, THEREFORE, BE IT RESOLVED by the Orange County Board of Commissioners that <br /> (1) There is hereby imposed and levied within Orange County the third one-half cent (1/2¢) Local Government <br /> Sales and Use Tax authorized by Section 34.14(a) of S.L. 2001-424, as amended by S.L. 2002-123, and <br /> codified as Article 44 of Chapter 105 of the General Statutes of North Carolina. The tax hereby imposed and <br /> levied shall apply to the same extent and be subject to the same limitations as are set forth in said S.L. 2001- <br /> 424. <br /> (2) Collection of the tax by the North Carolina Secretary of Revenue, and liability therefore, shall begin and <br /> continue on and after the first day of December 2002. <br />