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3 <br />DRAFT <br />UPDATED 2/28/08 <br />ORANGE COUNTY BOARD OF COMMISSIONERS <br />Statement of Intent Regarding Uses of Land Transfer Tax Proceeds <br />Based on discussion at the February 12, 2008 work session, the following represents a <br />starting point for establishing the formal position of the Orange County Board of <br />Commissioners regarding the prospective uses of the proceeds from a .4 % land transfer tax, <br />if approved by Orange County voters: <br />1. The Orange County Board of Commissioners believe: <br />• there are significant pressing school, park, and other County capital needs that are <br />currently unfunded or underfunded in the County's 10 Year Capital Investment Plan <br />• it is important to provide Orange County taxpayers with some relief from the pressure <br />to raise property taxes to address those, and other, County needs <br />• revenue from the land transfer tax alternative made available to counties by the <br />General Assembly during the 2007 Session provides an opportunity to gain some <br />measure of that relief <br />• if the County Commissioners do not have voter approval to levy a .4% land transfer <br />tax, that inevitably will lead to property tax increases to meet capital needs that MUST <br />be funded <br />• while the Board of Commissioners cannot say that property taxes will never be raised, <br />the availability of an alternative revenue source through the land transfer tax does <br />mean that property tax rates would be lower than they otherwise would be without the <br />land transfer tax . <br />• capital funding from the land transfer tax musfi be allocated in an equitable manner <br />between projects in the County's two school systems and other County capital <br />projects <br />• funding from the land transfer tax should be allocated to already identified projects the <br />County MUST accomplish, not to new projects that have not been previously <br />contemplated <br />• funding from the land transfer tax could be allocated to renovation projects as well as <br />to new facilities <br />• if additional funding does not come from the land transfer tax, it will inevitably come <br />from the property tax for projects that MUST be done, and non-mandated projects will <br />either be deferred or not completed <br />2. Therefore, the Orange County Board of Commissioners hereby states its intention to <br />use the proceeds from the land transfer tax for currently unfunded or underfunded <br />school and park projects. Proceeds from the land transfer tax in later years will be used <br />to address County Commissioner priorities as established in the County's 10 Year <br />Capital Investment Plan. <br />DRAFT <br />