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'- <br /> .P..- 4. The impact tax authorization is intended to replace <br /> legislation now in place authorizing Orange County, Chapel Hill <br /> and Carrboro to impose fees on new development. It is the view <br /> of the local governments of the County that an impact tax is su- <br /> perior to an impact fee. This is so because impact fees, where <br /> in place, have proven to be difficult to administer and in- <br /> flexible to changing local priorities. An pact tax is easy to <br /> administer. The revenues from it can be flexibly applied to <br /> needed capital projects. <br /> The impact tax also aids a consistent approach among <br /> the local governments within the County to meet the capital <br /> project needs of the residents of the County. <br /> 6. The Duportant features of the legislation authorizing <br /> an impact tax are <br /> A. It is not self-executing. The imposition of the <br /> tax will require an Orange County ordinance. <br /> B. The tax will be levied on the "impact of land <br /> development. " The person responsible for the tax will be the <br /> owner of property whereon construction occurs. Certain impacts <br /> are exempt, including those associated with the construction of <br /> g overnmentally-owned buildings and buildings owned and operated <br /> by nonprofit entities not used for commercial or residential <br /> purposes. <br /> C. The purpose of the tax is to generate funds to <br /> partially offset the cost of new and replacement capital <br /> facilities within Orange County. The funds collected by the <br /> County will be in part retained by the County and in part <br /> distributed, according to a formula, quarterly to Chapel Hill and <br /> 2 <br />