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DRAFT <br />ORANGE COUNTY BOARD OF COMMISSIONERS <br />RESOLUTION <br />SUPPORTING A REAL ESTATE TRANSFER TAX FOR ORANGE COUNTY AND <br />OTHER NORTH CAROLINA COUNTIES <br />WHEREAS, the properly tax is the only source of revenue over which counties have control; and <br />3 <br />WHEREAS, the State of North Carolina requires counties to pay 15 percent of the state share of Medicaid <br />- a program for which counties are not allowed to set policy, eligibility criteria, service options or provider rates; <br />and <br />WHEREAS, the total county share of Medicaid is now projected to eclipse $517 million during the 2007- <br />08 fiscal year; and <br />WHEREAS, it is estimated that in the 2007-08 fiscal year, Orange County will spend $3,924,800 or <br />approximately 2.4 percent of its expenditures for services to Medicaid eligible residents; and <br />WHEREAS, other unfunded mandates from the state such as reduced school class sizes are forcing county <br />property tax rates higher; and <br />WHEREAS, the Norkh Carolina Department of Public Instruction's School Planning Section 2006 Long <br />Range Facility Plans recently identified $9.7 billion of school facility needs statewide over the next five years; and <br />WHEREAS, seven counties in North Carolina -Camden, Chowan, Currituck, Dare, Pasquotank, <br />Perquimans and Washington -are all authorized by the General Assembly to levy a 1 percent real estate transfer tax; <br />and <br />WHEREAS, any revenue source that is made available to one county should be made available to all 100 <br />counties; and <br />WHEREAS, a priority goal of both the North Carolina Association of County Commissioners and Orange <br />County is to seek legislation to allow all counties to enact any or all of several revenue options from among those <br />that have already been authorized for any other county, including local option sales taxes, impact taxes and real <br />estate transfer taxes; and <br />WHEREAS, a real estate tax is tied closely to the real estate market and generates money to pay for <br />growth at the time it is needed; and <br />WHEREAS, a one percent real estate transfer taxis an equitable mechanism for making growth pay for its <br />impacts that could generate additional funds for Orange County to help meet the demands for new classroom space <br />and classroom improvements, development of parks, libraries and other infrastructure, and fund other critical needs; <br />and <br />WHEREAS, Sen. Bob Atwater of Chatham County has filed Senate Bill 1516, which would allow all <br />counties that do not have authority fora 1 percent land transfer tax an option to hold a voter referendum to enact <br />one; <br />NOW, THEREFORE, BE IT RESOLVED that the Orange County Board of Commissioners urges the <br />North Carolina General Assembly to authorize Orange County and all other North Carolina counties to enact at least <br />an additional one percent real estate transfer tax to be used for any lawful expenditures. <br />FURTHER BE IT RESOLVED that copies of this resolution be transmitted to the members of the <br />General Assembly representing Orange County, the North Carolina General Assembly leadership, the other 99 <br />North Carolina counties, and the North Carolina Association of County Commissioners. <br />This the 10°i day of April, 2007. <br />Moses Carey, Jr., Chair <br />Orange County Board of Commissioners <br />