Agenda - 09-19-2007-6h - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 19, 2007 Action Agenda. Item No. ~ej_~ _ SUBJECT: Decision Points, Steps and Timelines Regarding a Possible May 6, 2008 Local Revenue Options Referendum DEPARTMENT: Budget PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Donna Coffey, (919) 245-2151 PURPOSE: To consider decision points, steps and timelines regarding a possible May 6; 2008 Local Revenue Options Referendum. BACKGROUND: Local governments in North Carolina have historically relied heavily upon ad valorem property taxes as their major .source of revenue. For a number of years, the Orange County Board of County Commissioners, .the North Carolina Association of County Commissioners and many other Boards across the state, have lobbied the General Assembly for legislative authority to expand counties'' revenue options and lessen counties' reliance on properly taxes. During the 2007 legislative session, the General Assembly granted counties the ability to enact new revenue options. The new revenue options available for counties include a .4% land transfer tax and an additional ~/a-cent sales tax. There, are several important factors related to the new options: Counties must have voter approval in order to enact either of these taxes The ballot can include referenda for both the land transfer tax and the '/a-cent sales tax There are no restrictions on the use of either of the new local revenues -~ Should the Board choose to voluntarily designate the uses of the new revenue(s) (for ,example for capital infrastructure or to retire debt), the ballot language cannot stipulate uses of the new revenues ~k Counties cannot enact both revenues -should Commissioners include both referenda on the ballot and voters agree to both of them, Commissioners would have to choose which local revenue to authorize