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' Memorandum - July 14 , 1987 <br /> Hoard of Commissioners <br /> Page 2 <br /> The following is a summary of the provisions of HB1155 as amended <br /> by the Senate and the impact this may have on Orange County. <br /> 1 . Repeal of property taxes on retailers ' and wholesalers ' <br /> inventories effective January 1, 1988. Counties and <br /> cities are to be reimbursed for revenues lost beginning <br /> after January 1 , 1989 . The original proposal has been <br /> amended by the Senate to hold harmless any counties that <br /> would lose revenue under the reimbursement plan contained <br /> in the bill . Therefore , Orange County will not lose revenue <br /> initially and may actually gain a little . However, the <br /> reimbursement amount will be frozen at the amount determined <br /> for the first year. Any growth that would have occurAd in <br /> property tax revenues related to these inventories will not <br /> be reimbursed. <br /> 2 . Repeal of property taxes on manufacturers 'inventories effective <br /> January i , 1988. Counties and cities are to be reimbursed <br /> for the loss of this revenue beginning after January 15 , 1989. <br /> Again , Orange County would not lose revenue initially but <br /> could lose in the long run as the reimbursement amount is <br /> frozen at the amount determined for the first year. <br /> 3 . Increase the corporate income tax rate from 6% to 7% . <br /> 4 . Repeal the discount to retailers for collecting and paying <br /> the sales and use tax when due . <br /> 5 . Require most employers to remit state withholding taxes on <br /> a monthly basis . rather than a quarterly basis . <br /> 6 . Freeze at 60% the portion of the additional 1.10, sales tax <br /> revenue that is required to be spent on school capital <br /> for the first 11 years . <br /> 7. Create a "Public School Building Capital Fund" to be allocated <br /> to counties on a per average daily membership basis each <br /> budget year. Monies from this fund must be spent on school <br /> construction, renovation , repair, etc. or for land for public <br /> school buildings . If funds are not needed for construction , <br /> renovation,, , repair, etc. , they may be used to retire debt <br /> issued for these purposes. The counties must match on a basis <br /> of $1 of local funds for each $3 of State funds . Revenues <br /> from the 320 sales taxes may be used to meet the local matching <br /> requirements . <br />