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2 <br />property transactions. Counties in 36 states currently have authority to levy a real estate <br />transfer tax. <br />It should be noted that a real estate transfer tax has not impeded growth in the six North <br />Carolina counties that already have one in place. ,According to figures from the U.S. Census <br />Bureau, from July 1, 2000, through July 1, 2006, Camden County (34.7 percent growth) ranked <br />second and Currituck County (30.7 percent) third in population growth among North Carolina <br />counties. Pasquotank County came in 19th at 13.5 percent and Dare County was 20th at 13.2 <br />percent. All four of those counties experienced growth in that time frame that was significantly <br />above the state's growth rate of 10 percent. <br />North Carolina Association of County Commissioners Executive Director David F. Thompson <br />has stated, "Our counties' infrastructure needs are great. This is a revenue source that allows <br />counties to broaden their tax base so the residential property taxpayer who has been in his <br />house for 20 years isn't forced to pay an undue burden." <br />The property tax base for Orange and other NC counties is not growing fast enough to keep <br />pace with the demands caused by the rapidly growing population. As an example, North <br />Carolina county Medicaid costs are increasing at nearly 10 percent annually, while the property <br />tax base -the only source of revenue that county boards of commissioners have the authority <br />to increase - is growing statewide at less than 7.5 percent annually. <br />A real estate transfer tax is an equitable mechanism for making growth pay for its impacts that <br />could generate an estimated $10,033,850 for Orange County and would enable Orange and <br />other counties to address increasing Medicaid services costs (barring any relief from the state), <br />school facilities needs, courthouse projects, jails, parks development, libraries, and other local <br />government facility/service needs. <br />With the deadline for the introduction of individual bills in the General Assembly having already <br />passed, and assuming the Board approves the attached resolution, the County will need to <br />work with the County's legislative delegation to ensure that Orange County is included in any <br />real estate transfer tax bills that make their way forward during the remainder of the legislative <br />session. <br />FINANCIAL IMPACT: There is no financial impact associated with approval of the attached <br />resolution. Initial projections from the North Carolina Association of County Commissioners <br />estimate that Orange County could accrue $10,033,850 annually with the implementation of a <br />one percent real estate transfer tax. <br />RECOMMENDATION(S): The Manager recommends that the Board approve the attached <br />resolution, authorize the Chair to sign the resolution, and direct the Clerk to the Board to <br />forward copies of the signed resolution to Orange County's legislative delegation, the North <br />Carolina General Assembly leadership, the other 99 North Carolina counties, and the North <br />Carolina Association of County Commissioners. <br />