Minutes - 19870406 - Laserfiche WebLink

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culverts, open space and parks and houses. He continued that based on 1986 sales, income from this tax would total $2,235, 000. If this money were to be allocated on the point of origin basis, Orange County would receive $1.2 million or 54% and Chapel Hill would receive $973,000 or 44%. If allocated by population, Orange County would receive $1.4 million and Chapel Hill $587,000. If it were allocated according to a combination of the two, Orange County would receive $1.3 million and Chapel Hill $780, 000. He stated that it is their proposal that this be a county-wide tax. The County Commissioners and the County staff would administer the tax in the same way as the Ad Valorem tax. He proposed that the collection procedure be at the time of recordation of property transfer. On May 13, the Chapel Hill Town Council will consider a resolution to support this local bill on a County basis and he urged the Commissioners to do likewise. There is no objection to the establishment of a figure below which there shall be no transfer tax. In conclusion Mayor Wallace stressed that this tax not be an added tax with the Ad valorem tax increasing also. JAMES PORTO , Mayor of Carrboro, stated that the Board of Aldermen has not made a decision on the Real Estate Transfer Tax because they did not have adequate information on which to base a decision. He stated that while the Carrboro Board would rather find an alternative way to raise revenues that they would like to be able to be included in further discussion. Chair Marshall noted that the legislative delegation would favor a bill that included a stipulation that a municipality would have to adopt the resolution in order to be included. This would give Carrboro the opportunity to hold a public hearing and approve a resolution before implementing the tax. Mayor Porto stated that if this tax is imposed on the citizens that live in Carrboro that Carrboro would like to receive a portion of the tax even if the Board did not support the tax. GRAINGER BARRETT , Vice-President of Governmental Affairs for the Chapel Hill-Carrboro Chamber of Commerce, stated that the Chamber of Commerce perceives this tax as a form of property tax. He stated that an alternative tax would be the hotel/motel tax or the entertainment tax. The Chamber feels the tax falls unevenly on those who pay and those who benefit. A major problem in Orange County is the price of property. A lower priced house will sell more times and when adding 1% to the price of that house each time, the price escalates. The lower income citizens will be driven out of the County into other counties. He noted that the way to pay for the capital needs in the County is not pay-as-you-go because it introduces an inequity between those who pay for a longlife facility today and those who enjoy it over a longer period of time. The way to finance for fiscal soundness and fiscal fairness is to issue bonds and let those who enjoy the facility pay for that enjoyment over the life of it. KAY LAYMAN , Executive Officer of the Durham-Chapel Hill Homebuilders Association, read a letter written by the President Nicholas J. Tennyson. (A copy of the letter is in the permanent agenda file in the Clerk's office. ) HELENE IVEY , agreed that more revenue is needed but that additional taxes will drive people out of their homes and to other counties. She spoke in opposition of the Transfer Tax.