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NCACC <br />Page 2 of 2 <br />0 <br />Land Transfer: <br />Ballot Question -The form of the question to be presented on a ballot for a <br />special election concerning the levy of the tax authorized by this Article shall <br />be: '[ ]FOR [ ]AGAINST <br />Real property transfer tax at the rate of up to [X] percent [X%] of value or <br />consideration.' <br />Note: The land transfer tax amount can be set at a rate up to .4%, in <br />increments of .1%. <br />Sales Tax: <br />Ballot Question. -The form of the question to be presented on a ballot for a <br />special election concerning the levy of the tax authorized by this Article shall <br />be: '[ ]FOR [ ]AGAINST <br />Local sales and use tax at the rate of one-quarter percent (0.25%) in addition <br />to all other State and local sales and use taxes.' <br />Note: The sale tax amount is set at a rate of .25%. <br />Question: When is the earliest the sales tax will become effective if the Board of <br />County Commissioners levies the sales tax via resolution (following a referendum) <br />during November 2007? <br />Answer: April 1, 2008, so long as the resolution levying the tax is adopted in <br />November 2007. The sales tax may become effective on the first day of any calendar <br />quarter so long as the county gives the Secretary of Revenue at least 60 days' <br />advance notice. <br />Question: When is the earliest the land transfer tax will become effective if the Board <br />of County Commissioners levies the land transfer tax via resolution (following a <br />referendum) during November 2007? <br />Answer:. Jan. 1, 2008, so long as the resolution levying the tax is adopted in <br />November 2007. The tax may become effective only on the first day of a calendar <br />month set in the resolution levying the tax, which may not be earlier than the first day <br />of the second succeeding calendar month after the resolution is adopted. <br />Question: Are there restrictions on the use of either of the new local option tax <br />revenues? <br />Answer: Land transfer tax revenues are expressly authorized to be used for any <br />lawful purpose. The sales tax is not restricted or earmarked. <br />Question: If the referendum fails, can a county hold a subsequent referendum on the <br />same question, and if so, must a county wait a certain period of time prior to holding <br />another referendum? <br />Answer: Per Gerry Cohen (N.C. General Assembly Bill Drafting), there are no <br />restrictions on resubmitting a land transfer tax or the new quarter-cent sales tax to the <br />voters again if it has failed. <br />As with any local legal matter, we ask that you consult with your county attorney and <br />county board of elections as you .consider these local referendum options. <br />mhtml:file://C:\Documents and Settings\mallison\Local Settings\Temporary Internet Files\... 8/17/2007 <br />