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POLICY FOR INSERTION INTO THE POLICY MANUAL <br /> MEETING DATE: May 29, 1997 NUMBER: <br /> EFFECTIVE DATE: May 29, 1997 REVISIONS: <br /> POLICY: <br /> PAYMENTS IN LIEU OF TAXES - COUNTY OWNED PROPERTY <br /> County owned real property (land and buildings) is exempt from ad <br /> valorem property taxes as provided in Article V, Section 2 (3 ) of <br /> the North Carolina Constitution and North Carolina General <br /> Statutes § 105-278 .1 . From time to time Orange County owned real <br /> property is leased to persons using the property for private <br /> purposes not related to County programs or services . Typically <br /> these tenants are using the property as part of the for profit <br /> business activities of the tenant . This policy confirms and <br /> ratifies the previous unwritten policy of Orange County to charge <br /> such tenants payments in lieu of taxes in amounts equivalent to <br /> the amount of property tax that would otherwise be lawfully <br /> assessed against the leased premises were it taxable by the <br /> County and by any municipality in which the leased premises is <br /> located. Requiring these tenants to make payments in lieu of <br /> taxes serves two important purposes . One, it eliminates the <br /> competitive advantage accruing to a tenant of County owned real <br /> property that could result from a rental agreement not requiring <br /> tenant contribution of property taxes . Two, it provides the <br /> County and any municipality wherein the leased premises is <br /> located with money equivalent to taxes as a contribution to the <br /> cost of public services provided by the County and any <br /> municipality wherein the premises is located which public <br /> services benefit the tenant of County owned space in the same way <br /> that they benefit a tenant of privately owned leased space. <br /> lsg-9 <br /> realprop.pol <br />