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5 <br /> Exhibit A <br /> AN ACT TO AUTHORIZE ORANGE COUNTY TO LEVY AN EXCISE TAX ON <br /> INS`T'RUMENTS CONVEYING REAL PROPERTY IN ORANGE COUNTY <br /> The General Assembly of North Carolina enacts : <br /> Section 1 . Excise Tax. <br /> (a) Authorization. The Orange County Board of <br /> Commissioners may, by resolution, levy an excise tax on <br /> instruments conveying certain interests in real property in <br /> Orange County. The tax imposed may not exceed one dollar ($1 . 00) <br /> on each one hundred dollars ($100 . 00) or fraction thereof of the <br /> total consideration or value of the interest conveyed, including, <br /> in the case of a sale, the value of any lien or encumbrance <br /> remaining on the property at the time of sale. This tax is in <br /> addition to the tax levied by Article 8E of Chapter 105 of the <br /> General Statutes . <br /> The value of a lease subject to this tax shall be computed <br /> on the basis of the present value of the fixed lease payments <br /> and, if the lease payments are based in whole or in part on the <br /> lessee' s receipts, the estimated amount of the lessee ' s receipts . <br /> Based upon the recommendation of the Orange County Finance <br /> Director, the Board of Commissioners shall, at least annually, <br /> set the discount rate to be used to determine the present value <br /> of lease payments . Such determination shall be conclusive. <br /> (b) Scope. A tax levied under this section applies to all <br /> instruments conveying an interest in real property in Orange <br /> County except an instrument : <br /> (1) conveying an interest in real property from the United <br /> States, the State, or a political subdivision of the <br /> State; <br /> (2) recording a lease for a term of 10 years or less, <br /> unless : <br /> a. the lease gives the lessee an option to renew the <br /> lease for a period that, when added to the term of <br /> the lease, exceeds 10 years; <br /> b. the lease is for substantially the same property <br /> and is between the same parties as a lease <br /> previously recorded, and the term of the new <br /> lease, when added to that of the previous lease, <br /> exceed 10 years; or <br /> C . the lease requires or permits the property to be <br /> transferred to the lessee for less than the fair <br /> market value of the property; <br />