Agenda - 03-30-1989 - Laserfiche WebLink

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iI � • Home Builders Association of Durham and Chapel Hill ofDutham&thapelHin 21 W Colony Place • Suite 280 • Durham, North Carolina 27705 • Phone 919/493-8899 ISSUES CONCERNING THE ORANGE COUNTY IMPACT TAX LEGISLATION it is understood that the residents of Orange County object to the prospect of increasingly higher taxes as a means of accommodating new development and that alternative revenue sources are needed to help pay for the "impacts" of new development. However, it should be noted that all impacts are not created by new development and that a higher level of services requested by current residents necessitates the need, in part, for more tax revenue. Let us also remember the positive impacts of new development, such as additional property taxes, homeowners who will spend money in local shops thus generating more retail sales taxes to be collected by the County, and the creation of jobs. The question has been asked "Who should pay for the cost of new public facilities necessitated by new growth and development?" Obviously, new development should pay its fair share, but another question should be asked. "Are the expanded or new facilities and services solely for the benefit of new home buyers or will they serve the community at large?" Community -wide facilites and services should be paid by the total community. It is impossible to prove a direct cost impact of new residential development on schools, libraries, jails, etc. Consequently, these services should be paid through general taxation. The impact tax legislation requested by Orange County is very broad-based and open-ended. For instance, on what basis will the tax rate be established? Will there be a fiscal impact analysis that will be updated periodically, or will the tax rate be pulled out of thin air? A fiscal impact analysis should document the infrastructure necessitated by new versus existing development as well as costs associated with each. Any tax or fee should be reasonbly related to the cost of providing new or expanded facilities to serve new development. Furthermore, new development should not be required to pay for deficiencies in the existing infrastructure to meet higher standards than those applied to existing development, or to contribute to improvements that primarily benefit existing development. It is reasonable for the county to expect new development to pay its fair share in expanding or creating new facilities and services as they relate to the impact of the development. However, any fees or taxes collected should (Z1 /+ „��. „crin cl{f/ifiatG of[fie UVotionaC elksociation o/Q7omE 21.111.