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5 <br /> C. The purpose of the tax is to generate funds to <br /> partially offset the cost of new and replacement capital <br /> facilities which are necessary in part by new growth within <br /> Orange County. The funds collected by the County will be in part <br /> retained by. the County and in part distributed, according to a <br /> formula, quarterly to Chapel Hill, Carrboro and Hillsborough. <br /> The funds will be maintained by each local government in capital <br /> reserve improvement funds until spent for the capital improve- <br /> ments specified in the Bill. <br /> D. The excise tax will be levied on each square foot <br /> of dwelling space and each square foot of commercial building <br /> enclosed floor space. The tax will be collected at the time an <br /> occupancy permit is issued. The Bill provides for collection of <br /> the tax by civil action if necessary. <br /> E. The tax rate will be established annually by <br /> Orange County after consultation with Chapel Hill, Carrboro and <br /> Hillsborough. The rate will be uniform County-wide but may vary <br /> for different types of construction. <br /> F. The Bill provides for a disclosure statement in- <br /> tended to provide notice to the property owner of the existence <br /> of the tax and that the owner is responsible for its payment. <br /> G. The Bill applies only to Orange County and the <br /> municipalities located within Orange County. It is intended to <br /> replace impact fee authorization previously given to Orange <br /> County, Chapel Hill, Carrboro and Hillsborough. As such, it <br /> contemplates repeal of that authorization. <br /> 3 <br />