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~ legislation. <br /> VOTE: UNANIMOUS. <br /> IMPACT FEE AUTHORIZATION <br /> Already authorized for submission. <br /> REAL ESTATE TRANSFER TAX <br /> Geoffrey Gledhill indicated that leases for more than ten years <br /> would be taxed under this tax. <br /> Commissioner Carey commended the public for speaking out for the <br /> low income citizens in Orange County. He stated he clearly recognizes the <br /> need for additional resources to accommodate the growth the County is <br /> experiencing. He also recognizes the problems created by this growth in <br /> providing the services that citizens demand with the current resources <br /> available and those expected in the future. He stated he is not convinced <br /> that this additional tax is needed at this time. There are issues <br /> associated with this proposal that need more understanding and the issue <br /> needs further discussion so that the full implications can be understood by <br /> everyone. For these reasons, Commissioner Carey stated he would not <br /> support this tax until more information is available about the floor, <br /> whether the floor will be a rising floor with a ceiling on the floor and <br /> whether it will be tied to some sort of index associated with the cost of <br /> living. He feels this should be considered further and should not be <br /> submitted for legislation this year. The impact fee should be submitted at <br /> this time and the Board should wait to submit the Real Estate Transfer Tax. <br /> Commissioner Hartwell stated his main objection is the effect on <br /> the affordability of housing. He talked with the City Manager of Raleigh <br /> who stated they have not voted or asked their delegation for any enabling <br /> legislation. The bill has been changed to not include an exemption. The <br /> attorney for the City of Raleigh indicated he had no concern with the <br /> legality or the ability to administrate. Commissioner Hartwell indicated <br /> he favors the Land Transfer Tax instead of the impact fee. The tax is <br /> related to the growth and is fairer than the impact fee. <br /> Commissioner Halkiotis reiterated the different types of taxes <br /> that are in effect and some that could be enacted such as entertainment or <br /> hotel/motel tax. There are some serious needs in this County that must be <br /> addressed. He stated he does not favor another tax, but that the money <br /> must come from someplace and he would support this tax. <br /> Commissioner Willhoit stated that an alternative would be to <br /> raise the property tax which would have an adverse impact on the low income <br /> people. The Land Transfer Tax would be easier for people to pay at the <br /> time they realize a windfall tax or depreciation tax. <br /> Chair Marshall stated the tax brings some relief to those people <br /> who buy a house and remain in the house and who see their assessed <br /> evaluation rise tremendously because of the buying and selling that occurs. <br /> This tax does give a balance and puts pressure on those transfers that take <br /> place year after year raising the assessed evaluation. This tax would be <br /> reserved for capital improvements and would not be depended upon during <br /> periods of nongrowth. Part of this tax may be used for bonding. There are <br /> some issues that need to be addressed. It is important that the Board <br /> supports the State enabling legislation and, if it is not approved, that <br /> the Board request consideration of a local bill. The method of how it will <br /> be distributed and the threshold at which it starts needs to be determined. <br /> Chair Marshall entered into the record the letter from Town of <br /> Hillsborough Mayor Frank Sheffield. (A copy of this letter is in the <br /> permanent agenda file in the Clerk's office. ) <br />