RES-2002-047 Resolution Regarding Article 44 One-half Cent Local Government Sales and Use Tax

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Evelyn Cecil - Article44Res . doc Page 1 DRAFT CQ The County of Orange The State of North Carolina i RESOLUTION LEVYING THE THIRD ONE -HALF CENT ( 1 /20) r� LOCAL GOVERNMENT SALES AND USE TAX AND PRESCRIBING THE METHOD OF DISTRIBUTION OF THE PROCEEDS WITHIN ORANGE COUNTY WHEREAS , The General Assembly has authorized the Orange County Board of Commissioners to levy a one- half 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 2001424 ; and , �. WHEREAS , The Orange County Board of Commissioners held the public hearing on the issue of adopting this resolution on June 20 , 2002 , as required by N . C . G . S . 105 - 517 (b) and proper public notice of the Board ' s intent to consider this resolution was provided as required by N . C . G . S . 105 - 517 (b) ; and, i WHEREAS , The General Assembly levied a one half percent ( 1 /2%) state sales tax effective October 16 , 2001 by enacting Section 34 . 14 (a) of Session Law 2001424 , and this tax expires July 1 , 2003 ; and , WHEREAS , Orange County anticipates losing approximately $ 3 . 1 million in funds made available by the State of North Carolina to replace revenue lost because of legislative action : ( 1 ) to repeal sales taxes imposed on purchases made with Food Stamps ; (2 ) to repeal property taxes imposed on inventories held by manufacturers , retailers and wholesalers ; (3 ) to repeal taxes on intangible personal property; and , (4) to reduce taxes levied on residential property owned by low-income elderly taxpayers ; and , WHEREAS , The Orange County Board of Commissioners hereby finds that, particularly in light of the circumstances cited herein, the levy of The Third One-Half Cent ( 1 /2 ¢) Local Government Sales and Use Tax is necessary to adequately finance the operations of the county and the cities and towns herein . NOW , THEREFORE , BE IT RESOLVED by the Orange County Board of Commissioners : ( 1 ) There is hereby imposed and levied within Orange County The Third one-half cent ( 1 /20 ) Local Government Sales and Use Tax authorized by Section 34 . 14 (a) of Session Law 2001424 and codified as Article 44 of Chapter 105 of the General Statutes of North Carolina . The tax hereby imposed and levied shall apply to the same extent and be subject to the same limitations as are set forth in said Session Law 2001424 . (2) Collection of the tax by the North Carolina Secretary of Revenue, and liability therefore, shall begin and continue on and after the first day of July, 2003 , or sooner, if allowed by law. (3 ) The net proceeds of the tax levied herein shall be distributed by the Secretary of Revenue on a monthly basis to Orange County as prescribed by N . C . G . S . 105 - 520 . The amount distributed to Orange County shall be divided among the county and the municipalities herein in accordance with the method by which the one percent ( 1 %) sales and use taxes levied in Orange County pursuant to Article 39 of General Statutes Chapter 105 are distributed . (4) This Resolution is effective upon its adoption, and a certified copy hereof shall be forwarded to the North Carolina Secretary of Revenue . Adopted this day of , 20 i