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4,004 or wo <br /> ` <br /> FINANCE DEPARTMENT <br /> 17 5: <br /> r <br /> p <br /> '717 est AA`I' <br /> M E M O R A N D U M ORANGE COUNTY <br /> GORDON R. BAKER <br /> DIRECTOR <br /> TO: County Manager <br /> FROM: Finance Director/ <br /> SUBJECT: Land Transfer Tax <br /> DATE April 10, 1987 <br /> The attached table illustrates the distribution of a land transfer tax <br /> of one percent (1%) based upon the revenue stamps associated with real estate <br /> transactions as maintained in the County's files for 1986. The illustration <br /> has been expanded from the previous illustration of April 3rd to include <br /> figures for exempting from the tax the first $50,000 and the first $75,000 <br /> of values of real estate conveyances. <br /> The data base for the illustration is basically the same as was used for <br /> the previous illustration on April 3rd. A small decrease in the total value of <br /> the transactions has occured since the previous illustration due to the removal <br /> of this information from the file once the deed is recorded. Also, some <br /> shifting in the value from one jurisdiction to another has occured due to <br /> further analysis of the information in the files. <br /> The illustration indicates that exempting the first $50,000 of value from <br /> each transaction reduces the total tax available for distribution by 49.7%. <br /> Exempting the first $75,000 reduces the total tax available for distribution <br /> by 65.2%. This points out the fact that a majority of the real estate transactions <br /> are for values under the $75,000 floor and a substantial number of transactions <br /> are under the $50,000 floor. <br /> The illustration does not include any exemptions for non-profit organizations. <br /> This type of information is .not available in the files as they are presently <br /> maintained. <br /> Also, as was mentioned in my memorandum of April 3rd, the actual amount <br /> of transfer tax for the period illustrated would have been greater. The <br /> information maintained and available in the files is not an indication of the <br /> total taxable value related to real estate transfers. <br /> 106 EAST MARGARET LANE • HILLSBOROUGH, NORTH CAROLINA 27278 • 919/732-8181 <br />