Agenda - 06-20-2002 - 2 - Laserfiche WebLink

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DRAFT The County of Orange The State of North Carolina RESOLUTION LEVYING THE THIRD ONE-HALF CENT(1/2¢) LOCAL GOVERNMENT SALES AND USE TAX AND PRESCRIBING THE METHOD OF DISTRIBUTION OF THE PROCEEDS WITHIN ORANGE COUNTY WHEREAS,The General Assembly has authorized the Orange County Board of Commissioners to levy a one- half percent(1/2%)local sales and use tax by enacting N.C.G.S. 105-517(b)in Section 34.14(a)of Session Law 2001424;and, WHEREAS,The Orange County Board of Commissioners held the public hearing on the issue of adopting this resolution on June 20,2002,as required by N.C.G.S. 105-517(b)and proper public notice of the Board's intent to consider this resolution was provided as required by N.C.G.S. 105-517(b);and, WHEREAS,The General Assembly levied a one half percent(1/2%)state sales tax effective October 16,2001 by enacting Section 34.14(a)of Session Law 2001-424,and this tax expires July 1,2003;and, WHEREAS,Orange County anticipates losing approximately$3.1 million in funds made available by the State of North Carolina to replace revenue lost because of legislative action:(1)to repeal sales taxes imposed on purchases made with Food Stamps;(2)to repeal property taxes imposed on inventories held by manufacturers,retailers and wholesalers;(3)to repeal taxes on intangible personal property;and,(4)to reduce taxes levied on residential property owned by low-income elderly taxpayers;and, WHEREAS,The Orange County Board of Commissioners hereby finds that,particularly in light of the circumstances cited herein,the levy of The Third One-Half Cent(1/2¢)Local Government Sales and Use Tax is necessary to adequately finance the operations of the county and the cities and towns herein. NOW,THEREFORE,BE IT RESOLVED by the Orange County Board of Commissioners: (1) There is hereby imposed and levied within Orange County The Third one-half cent(1/2¢)Local Government Sales and Use Tax authorized by Section 34.14(a)of Session Law 2001-424 and codified as Article 44 of Chapter 105 of the General Statutes of North Carolina. The tax hereby imposed and levied shall apply to the same extent and be subject to the same limitations as are set forth in said Session Law 2001424. (2) Collection of the tax by the North Carolina Secretary of Revenue,and liability therefore,shall begin and continue on and after the first day of July,2003,or sooner,if allowed by law. (3) The net proceeds of the tax levied herein shall be distributed by the Secretary of Revenue on a monthly basis to Orange County as prescribed by N.C.G.S. 105-520. The amount distributed to Orange County shall be divided among the county and the municipalities herein in accordance with the method by which the one percent(1%)sales and use taxes levied in Orange County pursuant to Article 39 of General Statutes Chapter 105 are distributed. (4) This Resolution is effective upon its adoption,and a certified copy hereof shall be forwarded to the North Carolina Secretary of Revenue. Adopted this day of 120