Minutes - 20080219 - Laserfiche WebLink

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Commissioner Gordon asked if the questions were alternated (sales tax first, land transfer tax first, vice versa) and Dr. Hertzog said no, but there was a similar survey conducted in Durham County last year where the questions were alternated, and there was absolutely no difference in responses. Commissioner Nelson asked for access to the cross tabs with the age and gender broken down and Dr. Hertzog said yes. Chair Jacobs pointed out the longer version of page 9 that there is a breakdown of category by person. Commissioner Carey said that the Board received some information about exemptions and he asked Geof Gledhill to comment on this for the public. Geof Gledhill said that there are hundreds of exemptions to sales tax, including farm products and supplies, special interest exemptions, and many more. The significant exemptions to sales tax are food and medicines. The transfer tax exemptions are identical to the exemptions in existence for the excise tax on real estate transactions. The tax that is in existence now is 2% on the sale of a house and is charged to the seller. The exemptions for the excise tax and the transfer tax are transfers by governmental units (Orange County or the University); transfers by operation of law such as leases, transfers pursuant to a will or testament; gifts; merger or conversion of businesses; and deeds of trust. Chair Jacobs asked if a conservation easement was taxable and Geof Gledhill said yes. PUBLIC COMMENT: Keith Dixon said that there is already a 0.2% transfer tax for land transfers, and the 0.4% is an additional percentage, which would be a total of 0.6% of the time of the sale. A person selling a $200,000 house at the time of closing would pay$1,200 in transfer taxes. He said that if these amounts are significant enough, it could cause a hardship to the seller. He said that the transfer tax focuses only on people selling property. It seems unfair to tax such a small group so severely. He said that a %4-cent additional sales tax is non-detectable, would not create a hardship for anyone, and would be paid by all citizens. With a l4-cent increase in the sales tax, a person spending $100 would pay an additional .25 of tax. A person spending $400 would pay an additional $1.00 of tax. He said that the sales tax revenue in the County has the potential for huge growth with additional retail space. Kenneth Johnson lives on Orange Heights Loop and he has an 80-year old friend who has been a farmer for many years and lives in a small cinder block house. He said that his friend's wife died this year and he is now selling off property to pay his taxes. He said that taxes are too high and the Board of County Commissioners wants to tax him more. He said that everything he has is taxed and now they are trying to tax intangible things such as satellite TV. He said that politicians are taxing people for everything. He said that the landowners want it on the sales tax and the salespeople want it to be on the landowners. He said to do the right thing and do not tax. Robert Gardinier read a prepared statement: "Subject: Local Revenue Options —Land Transfer Tax Reference: Example of the `Real Cost" to Property Owners of the Land Transfer Tax Option, attached. There is a distinct advantage to the "transfer tax" option for the property owners of Orange County that I have not heard discussed in the public forum and I feel that everyone should be made aware of it. This advantage is in addition to the other advantages, which include, particularly for new construction, having revenue income at the time that new construction comes on line and new demands are being placed on the infrastructure. The advantage I describe below will benefit all property owners (Farmers, families, etc.), particularly those property owners who maintain ownership over a longer time period. (i.e., a period of 10, 20, 30, or more years).