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V. ORANGE COUNTY REVENUES <br />22 <br />A variety of revenue sources provide the funding for the Orange County Bus and Rail <br />Investment Plan. Those revenues include: <br />• A new one - half -cent sales tax in Orange County <br />• A new $7 vehicle registration fee levied by Orange County <br />• An increase of $3 to the existing $5 vehicle registration fee currently levied by Triangle <br />Transit in Orange County <br />• Revenue from Triangle Transit's rental car tax <br />• NC State Government contributions <br />• Federal Government contributions <br />In addition, local funding of current transit services will remain in place. <br />The initial proceeds for a FULL YEAR of each local revenue stream for Orange County in 2013 <br />for transit are assumed to be: <br />• Y -cent sales tax: $5.0 million <br />• $7 vehicle registration fee: $788,000 <br />• $3 vehicle registration fee increase: $338,000 <br />• Rental car tax revenue: $582,000 <br />Growth rates assumed for each revenue source: <br />• Y -cent sales tax: <br />• Growth rate from 2011 through 2014: 1.0% <br />• Growth rate from 2015 through 2035: 3.6% <br />• $7 vehicle registration fee: 2.0% <br />• $3 vehicle registration fee increase: 2.0% <br />• Rental car tax revenue: 4.0% <br />A total of $25 million would be borrowed over the life of the plan. This borrowing would <br />cover for the large capital expenditures which occur for 3 to 4 years of construction of the <br />light rail component of the plan. Any borrowing would be from capital markets through <br />government bonds, would require approval by the NC Local Government Commission, and <br />would have to meet debt to revenue ratios required by the capital markets for bond issuance. <br />Further details for each revenue source follow. <br />A. One -half cent sales tax in Orange County <br />A one half -cent sales tax in Orange County means that when individuals spend $10.00 on <br />certain goods and services, an additional five cents ($0.05) is added to the transaction to <br />support the development of the Bus and Rail Investment Plan. Purchases of food, gasoline, <br />medicine, health care and housing are excluded from the tax. <br />A one half -cent sales tax in Orange County is estimated to generate $5.0 million in 2013 if <br />active for the full year. Discussions with the NC Dept of Revenue indicate that in the first year <br />5/23/2012 - Page 122 <br />