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

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Commissioners levied the sales tax via resolution following a May 2008 referendum. o .4% Land Transfer Tax -The tax may become effective only on the first day of a calendar month set in the resolution levying the tax, which may not be earlier than the first day of the second succeeding calendar month after the adoption of the resolution (following the referendum). Therefore, 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. Since the General Assembly's approval of the revenue options happened less than 30 days ago, most counties across the state are in the process of deciding their next steps with regard to the new revenue options and have not made final decisions. The Manager plans to attend a Manager's update on the local revenue options on August 17, 2007 where additional information regarding which option other .counties are choosing to enact will be available. The Manager will provide information collected at that meeting to the Board during the August 21 meeting. The North Carolina Association of County Commissioners recommends that counties undertake a public education campaign to educate voters on the revenue options. County staff envisions the education initiative to be similar to those the County has undertaken for past voter approved bond referenda. The Manager is prepared to convene County staff to begin an education initiative as soon as the Board finalizes its decision on the local revenue options. FINANCIAL IMPACT: According to projections generated by the North Carolina Association of County Commissioners, a .4% land transfer tax would generate just over $4 million annually while a '/4-cent sales tax increase would produce just over $3 million per year. There are no restrictions on the use of either of these revenues. During the budget planning process this spring, staff anticipated that there would be a statewide bond this fall and that we would need to open the non-municipal sites, so those costs are included in the Board of Elections 2007-08 fiscal year budget. However, since the General Assembly did not authorize a statewide bond before recessing this summer the funds originally budgeted for this purpose will not be spent unless Commissioners choose to conduct a revenue options referendum on November 6, 2007. The anticipated cost to open the non-municipal sites totals $27,200 and is included in the 2007-08 Board of Elections budget. The May 6, 2008 election is a statewide election meaning that we have budgeted for all precincts in the County to be open -thereby the County will not incur additional costs for opening all precincts. RECOMMENDATION(S): The Manager recommends that the Board of County Commissioners provide direction to~ staff on proceeding with enactment of the local revenue options.