Agenda - 10-09-2007-6i - Laserfiche WebLink

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With regard to the financial impact of the newly enacted revenue options, it is important to note that an affirmative vote in May 2008 would result in proceeds from the new revenue beginning during the upcoming 2008-09 fiscal year. Other pertinent specifics related to the individual revenue options include: ~- 1/4 Cent Sales Tax o September 1, 2008 is the earliest date that the sales tax would become effective if Commissioners levied the sales tax via resolution following a May 2008 referendum. o The State would distribute the new'/4-cent sales tax to counties based on point of delivery and not on a per capita basis. o As authorized, the new sales tax would not apply to food purchases. o There are no legislative requirements for counties to share the newly authorized '/4-cent sales tax with local municipalities. o Based on information received from the NC Association of County Commissioners, Orange County can expect $3,031,453 from the '/4-cent sales tax -the equivalent of about 2.4 cents in current ad valorem property tax. 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. -~k .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. o 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. o 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 from the land transfer tax -the equivalent of about 3.2 cents in current ad valorem property tax. 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.