Orange County NC Website
Browse       Search
ORANGE COUNTY <br />ASSEMBLY OF GOVERNMENTS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: November 19, 2014 <br />Action Agenda <br />Item No. 1 <br />SUBJECT: Article 46 — One Quarter Cent Sales Tax Collection and Use; Funds Available <br />and Main Uses for Economic Development in Orange County <br />DEPARTMENT: County Economic PUBLIC HEARING: (Y /N) No <br />Development, County Finance <br />& Administrative Services <br />ATTACHMENT(S): <br />A) Economic Development Uses of <br />"Article 46" Quarter Cent Sales Tax <br />B) Article 46 Sales Tax Collection — <br />October 2014 Report <br />C) Orange County Uses of Article 46 <br />Quarter Cents Proceeds Since <br />2001 <br />D) Available Economic Development <br />Article 46 Sales Tax Proceeds <br />INFORMATION CONTACT: <br />Clarence Grier, (919) 245 -2453 <br />Steve Brantley, (919) 245 -2326 <br />1 <br />PURPOSE: To discuss the receipt and usage of "Article 46" proceeds that are collected <br />annually from a one - quarter cent sales tax that Orange County voters approved in 2011 for <br />use in County -wide economic Development initiatives, including the main funding <br />programs used, successful economic development examples, current balances and next <br />goals. <br />BACKGROUND: Orange County voters successfully passed a referendum in November <br />2011 to levy a one - quarter (1/4) cent sales tax that generates additional annual funding for <br />education and economic development purposes. Now called "Article 46 ", the funding <br />program was forecast to generate $2.5 million annually in new local sales tax proceeds <br />which would be split equally between education and economic development, each <br />receiving $1.25 million. The 50/50 share of Article 46 funds for economic development <br />was initially set for 10 years. The Orange County Board of Commissioners adopted a <br />Resolution in December 2011 authorizing the new one - quarter cent sales tax, and actual <br />proceeds began to accrue at the State level and distributed to Orange County in early <br />2012. <br />There is no set protocol for Article 46 funding requests for economic development projects, <br />such as proposed by the municipalities, to be considered by the County. Previous <br />requests have been tied to specific project needs, and presented directly to the Board of <br />Commissioners, the County Manager, and on occasion, by the towns' economic <br />development staff to the Orange County Economic Development office. Proposed <br />