Agenda - 03-18-2008-3b - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 18, 2008 Action Agenda Item No. ~_ SUBJECT: Resolution Regarding Planned Uses of Land Transfer Tax Proceeds DEPARTMENT: County Manager/Budget PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Proposed Resolution Regarding Laura Blackmon or Rod Visser, Uses of Land Transfer Tax Proceeds 919-245-2300 Approved Statement of Intent Regarding Donna Coffey, 919-245-2151 Uses of Land Transfer Tax Proceeds PURPOSE: To approve a resolution specifying the intentions of the Orange County Board of Commissione"rs for the use of proceeds from a .4% land transfer tax, if approved by voters on the May 6, 2008 ballot, and subsequently implemented by the Board. BACKGROUND: At the February 19, 2008 regular meeting, the Board of Commissioners adopted a resolution calling an advisory referendum for May 6, 2008 on the question of whether to levy a land transfer tax. This tax of four-tenths percent on eligible real property transactions was provided for in the 2007 Session Laws enacted by the North Carolina General Assembly as a local revenue option available to county governments. If Orange County voters approve this measure, and County Commissioners implement it subsequently in May 2008 (following a 10= day public notice), the levy of the tax could begin as early as July 1, 2008. The Orange County Commissioners approved at their March 6, 2008 regular meeting a "Statement of Intent Regarding Uses of Land Transfer Tax Proceeds". The Board directed staff to bring back for the Board's action at the earliest opportunity a draft of a resolution to document the statement of intent. The adopted resolution would serve as a formal record of the Board's plans to use proceeds from a land transfer tax, if Orange County voters subsequently approve that tax. Staff and the County Attorney have revised the accompanying proposed resolution to reflect the Board's discussion at the March 6, March 11, and March 12 meetings. FINANCIAL IMPACT: There is no direct financial impact associated with this agenda item. Recently updated estimates developed by the County Budget Director suggest that based on historical patterns, Orange County could expect proceeds for FY 2008-09 of approximately $3.5 million from a .4 percent land transfer tax, if approved by voters and implemented by the Board of Commissioners to take effect on July 1, 2008. RECOMMENDATION(S): The Manager recommends that the Board adopt the accompanying resolution, or a modified version thereof, to document the Board's intended uses of the proceeds from the prospective land transfer tax.