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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: March 6, 2014 <br /> Action Agenda <br /> Item No. 7-b <br /> SUBJECT: Authorization for Triangle Transit Authority to Levy an Additional Three Dollar <br /> ($3) Vehicle Registration Tax in Orange County <br /> DEPARTMENT: Attorney/ Planning and PUBLIC HEARING: (Y/N) No <br /> Inspections <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Resolution Authorizing the Research John Roberts, County Attorney, 919-245-2318 <br /> Triangle Regional Public Transportation Craig Benedict, Planning Director, 919-245- <br /> Authority to Levy the Full Eight Dollar 2592 <br /> ($8.00) Vehicle Registration Tax on Motor <br /> Vehicles Registered in Orange County <br /> PURPOSE: To consider a resolution authorizing Triangle Transit Authority ("TTA") to levy an <br /> additional $3 vehicle registration tax in Orange County. <br /> BACKGROUND: In June 2012 the Orange County Board of Commissioners approved the <br /> Orange County Bus and Rail Investment Plan ("Plan"). The Plan provides the method and <br /> procedures whereby additional bus service, bus rapid transit, and light rail service may be <br /> provided in Orange County. In addition to state and federal funding, the Plan designates as <br /> funding for these certain services the vehicle registration tax authorized by North Carolina <br /> General Statute (NCGS) 105-561 ($3). <br /> TTA currently levies a $5 vehicle registration tax in Orange County pursuant to the authority <br /> granted in NCGS 105-561. The vehicle $3 vehicle registration tax is an expansion of this tax to <br /> the maximum amount authorized by the statute which is $8. <br /> In December 2012 the Board of Commissioners approved a similar resolution. However, TTA's <br /> general counsel subsequently formed the opinion that the language of NCGS 105-561 required <br /> all three counties, Durham, Orange, and Wake, to approve the increase in order for it to take <br /> effect. Only Durham and Orange approved the increase. TTA successfully secured an <br /> amendment to NCGS 105-561 in the 2013 legislative session. The amendment allows the tax <br /> to be implemented in each county that approves it. <br /> The resolution authorizes TTA to move forward with the levy of these taxes. <br /> FINANCIAL IMPACT: The annual revenue expected from the TTA $3 tag fee, once fully <br /> implemented, is projected at approximately $338,000 a year with 2% growth per year per the <br /> adopted Orange County Bus and Rail Investment Plan. <br /> RECOMMENDATION(S): The Manager recommends the Board approve and authorize the <br /> Chair to sign the attached resolution. <br />