Agenda - 08-21-2007-6b - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: August 21, 2007 Action Agenda Item No. Co' b SUBJECT• Local Revenue Options Authorized by General Assembly DEPARTMENT: Budget PUBLIC HEARING: (Y/N) No ATTACHMENT(S): NCACC Frequently Asked Questions Regarding New County Authority Referenda INFORMATION CONTACT: Laura Blackmon, (919) 245-2300 Donna Coffey, (919) 245-2151 PURPOSE: To allow the Board of County Commissioners an opportunity to discuss and decide upon its intent for enacting the County's local revenue options recently authorized by the General Assembly. BACKGROUND: Local governments in North Carolina have historically relied heavily upon ad valorem property taxes as their major source of revenue. For example, in the current 2007-08 fiscal year property tax revenues total $119,946,105 or 69 percent of Orange County's total General Fund budget of $173,624,351. The County's approved tax rate equals 95 cents. per $100 of property valuation; and each penny collected in property tax generates $1,247,881. 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 lessening counties' reliance on property taxes. With the recently approved 2007-09 State biennium budget, the North Carolina General Assembly granted counties the choice of enacting a .4% land transfer tax or an additional '/4-cent sales tax. Enactment of either of these taxes requires voter approval. The ballot can include referenda for both the land transfer tax and the '/4-cent sales tax. Should both referenda pass, Commissioners would have to choose which one to authorize - a County cannot enact both revenues and cannot enact either without voter approval.