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3 <br />Establishing a Referendum: Pursuant to provisions of Session Law 2007-0323, "the board of <br />county commissioners may direct the county board of elections to conduct an advisory <br />referendum on the question of whether to levy a local land transfer tax in the county..." Similar <br />language authorizes a referendum on the one-quarter cent local sales and use tax. <br />The statutes provide specifically for the ballot language for both of these questions: <br />[ ] FOR [ ] AGAINST <br />Real property transfer tax at the rate of up to [x] percent [x%] of value or consideration. <br />(NOTE: The x in the brackets above would be replaced on the ballot by .1, .2, .3, or .4, <br />depending on the decision of the Board of County Commissioners). <br />[ ] FOR [ ] AGAINST <br />Local sales and use tax at the rate of one-quarter percent (0.25%) in addition to all other State <br />and local sales and use taxes. <br />Accompanying this abstract are proposed resolutions that, upon adoption by the Board of <br />Commissioners, would call upon the Orange County Board of Elections to schedule a May 6, <br />2008 election on either the local land transfer tax (Version A), the local option sales and use tax <br />(Version B), or both the land transfer tax and sales and use tax (Version C) <br />Use of Proceeds: There is no provision in the law for earmarking potential proceeds of these <br />revenue sources through the referendum itself, as the ballot language is explicitly provided for <br />by statute as noted above. However, experience from other county jurisdictions that held similar <br />referenda in November 2007 suggests that it is extremely important to voters that they have <br />some understanding of the governing board's intentions regarding the likely uses of additional <br />tax revenue. <br />The Orange County Commissioners discussed the potential use of proceeds at their February <br />12, 2008 work session and agreed that clarity and simplicity are essential to effectively <br />communicating to the public the Board's plans for using any revenue from one of the available <br />new sources. The Board expressed the view that significant unfunded capital needs for both <br />schools and parks would be appropriate objects of expenditure for any new revenues. The <br />Board directed the Manager to draft a statement of the proposed uses of the proceeds that <br />would reflect the Board's February 12 discussion. That draft statement accompanies this <br />abstract as a starting point for further Board deliberation on the intended uses of local revenue <br />option proceeds. <br />The Manager recommends that the Board consider adopting a formal resolution at its March 6, <br />2008 meeting that will explicitly communicate the Board's intended uses of the funds, pursuant <br />to decisions that the Board reaches at this February 19 meeting. That document would become <br />part of the foundation for educational materials to be developed and disseminated this spring <br />with assistance from the Local Revenue Options Education Advisory Committee.