Agenda - 06-17-1987 - Laserfiche WebLink

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ORANGE COUNTY SOURCES OF REVENUE The current revenue sources available for Orange County can be classified in 6 major categories . The categories are as follows : a. Taxes b . Licenses and permits c. Intergovernmental d. Charges for Service e . Interest on Investments f. Miscellaneous other Revenues The following paragraphs will discuss each revenue source in detail. A. Taxes 1 . The Property:::Tax - is the major revenue source for Orange County. This tax can be described as a tax on property rather than the person who owns the property. Taxation creates a lien on the property . This lien continues with the property even when it is sold. The tax collector cannot secure a personal judgement against a taxpayer for collection purposes . To collect the tax the lien is forclosed and the property is sold. In fiscal year ending June 30 , 1986 property taxes accounted for 48. 1% of total revenues . In the current year budget (86/87) property taxes account for 53% . In the managers recommended budget for fiscal year 198788 property taxes account for 60. 8% of all revenues . The increase in the reliance on the tax property reflects the loss of revenues in other categories . (Federal/State Government etc. ) 2 . Sales & Use Taxes - Are the second major source of revenue for Orange County . The sales and use tax is in fact two taxes . The sales tax is basically a tax on the retail sale or lease of tangible personal property . The use tax complements the sales tax. This tax is an excise tax on the right to use or consume property in North Carolina . The tax is levied only against property on which no sales tax has been paid. The sales and use taxes are composed of three elements . These are all enacted at the option of each county . The three elements are a lfi tax, a and an additional 12 G tax. Orange County has enacted all three elements of this tax.