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

Browse Search

The effective date of the ~/4-cent sales tax would be October 1, 2008 if the voters approved it on May 6, 2008 meaning that the County would receive 9 months of revenue collections or about 3/4 of the NCACC's annual projections of $3,031,453 during fiscal year 2008-09. o According to statistics, a family of three with a median income of $55,000 per year could expect to pay an additional $51 per year with the new ~/4- cent sales tax. ~; .4% Land Transfer Tax o Should Commissioners receive voter approval of the land transfer tax on May 6, 2008, the effective date of the tax would be July 1, 2008. o The County currently levies a .2% land transfer tax -more commonly referred to as "deed, stamps". The newly authorized land transfer tax would increase the tax by .4% bringing the total charge to .6% of the real estate sale price. ^ The Register of Deeds Office collects the current .2% deed stamp revenues at the time of real estate sales. As mandated by the State, the Register of Deeds remits 50% of the current .2% deed stamps collections to the State of NC. During fiscal year 2006-07, Orange County collected $2,056,539 in deed stamps and remitted one-half of that amount ($1,028,270) to the State as their share of the collections. ^ There are no legislative requirements for counties to share the newly authorized .4% land transfer tax with the State or with local municipalities. o Based on information received from the NC Association of County Commissioners, Orange County can expect $4,013,532 annually from the land transfer tax -the equivalent of about 3.2 cents in current ad valorem property tax. ^ Annual collections would likely vary depending on the economy and actual property sales. As a point of reference, the amount of revenue generated by the .2% deed stamps increased an average of 17% annually between fiscal years 2002-03 and 2004-05. More recent numbers (fiscal years 2005-06 and 2006-07) reflect about a 2% annual increase in revenue collections. o A .4% land transfer tax would .equate to $800 on a home sold for $200,000 and $2,000 on a home sold for $500,000. Both of these would be in addition to the .2% deed stamps currently collected by the Register of Deeds. The Register of Deeds would collect the monies at the time of sale. RECOMMENDATION(S): The Manager recommends that the Board of County Commissioners: 1. State their intent to either seek or not seek authority for the local revenue option(s);