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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: April 10, 2007 <br />Action Agenda <br />Item No. ~-~ <br />SUBJECT: Resolution Supporting a Real Estate Transfer Tax for Orange County and <br />Other North Carolina Counties <br />DEPARTMENT: County Manager <br />PUBLIC HEARING: (YIN) No <br />ATTACHMENT(S): <br />Draft Resolution <br />NCACC Draft Resolution <br />NCACC Estimated Real Estate Transfer <br />Tax Revenues for NC Counties <br />INFORMATION CONTACT: <br />Laura Blackmon, 245-2300 <br />PURPOSE: To approve a resolution supporting a real estate transfer tax for Orange County <br />and other North Carolina counties. <br />BACKGROUND: Orange County has supported additional revenue options for local <br />governments for several years. For the 2007 North Carolina General Assembly Session, <br />Orange County included in its legislative package a section noted Revenue Options for Local <br />Government. A portion of this section read: <br />Support legislation that authorizes a variety of revenue options for local governments to <br />fund local government services. An overarching principle is that any local government <br />revenue source that is presently available to one or more local governments in the state <br />should be available to all local governments uniformly throughout the state. All local <br />governments should, on a reasonable basis, have the authority to levy local option sales <br />taxes, apply impact fees and/or taxes, utilize real estate transfer fees and/or taxes, etc. <br />Orange County specifically notes its support for the ability of all local governments to <br />apply impact fees and/or taxes and to implement real estate transfer fees and/or taxes. <br />Senate Bill 1516, filed in the North Garolina Senate on March 27, 2007 by Senator Bob Atwater <br />of Chatham County, would give all North Carolina counties alocal-option real estate transfer tax <br />of up to one percent to help meet rising infrastructure needs. If approved, it would provide the <br />93 counties that do not have authority for a real estate transfer tax an option to hold a voter <br />referendum to enact one. <br />The real estate transfer tax is tied closely to the real estate market and generates money to pay <br />for growth at the time it is needed. A tax would apply to both residential and commercial <br />