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24 <br /> V. ORANGE COUNTY REVENUES <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 /> • %z-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 /> • %z-cent sales tax: <br /> o Growth rate from 2011 through 2014: 1.0% <br /> o 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 /> ":b/:3�/�G���-Page � 22 <br />