Agenda - 04-27-2017 - 1 - Consideration of the Final Draft Durham – Orange Light Rail Cost Sharing Agreement and Final Draft Orange County Transit Plan

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70 Orange County Transit Plan April 25, 2017 Revenue from the half-cent sales tax can be used for financing, constructing, operating, and maintaining local public transit There are four dedicated revenue streams used to fund the systems.The funds can be used to supplement but not supplant local share of projects and services in this Plan. These revenues or replace existing funds or resources for public transit systems. are collected in both Durham and Orange counties; the revenues governed by this Plan are those collected in Orange GoTriangle has statutory authority to levy this tax in Durham, County. These four dedicated Tax District Revenue streams Orange, and Wake Counties. Doing so in each county is used to finance this Plan are referred to throughout this contingent on the addition of the county to a tax district, a document as "Tax District Revenue." The Tax District Revenue successful referendum, and approval from the Board of County includes: Commissioners. GoTriangle created the Western Triangle Tax District (now known as the Triangle Tax District) in June 2011. • Article 43: One-half percent(half-cent)sales and use tax Durham County voters passed their referendum in November • Article 50: GoTriangle five percent vehicle rental tax 2011, and the Durham County Board of Commissioners passed • Article 51: Three-dollar increase to GoTriangle vehicle a resolution authorizing GoTriangle to levy the tax. GoTriangle registration fee added Orange County to the Tax District in June 2012. • Article 52: Seven-dollar county vehicle registration fee Additionally, Orange County and GoTriangle signed an agreement that GoTriangle would not levy the tax until the This Section describes these revenue streams, reports actual Board of Commissioners gave further approval. Following the annual revenues to date (including half-year revenues from successful Orange County referendum in November 2012, the fiscal year 2017), and explains assumptions used to project Orange County Board of Commissioners gave its approval. future revenues. GoTriangle formally levied the tax in both counties in December 2012. The North Carolina Department of Revenue (NCDOR) collects the tax in each county; collections in both counties began April 2013. NCDOR distributes these revenues directly to The largest of the four dedicated Tax District Revenue sources GoTriangle (in April 2017, following a similar process, NCDOR is Article 43, a one-half percent (half-cent) sales and use tax began collecting ahalf-cent sales tax dedicated to transit in collected in Durham and Orange Counties. Ahalf-cent sales tax Wake County). means when individuals spend $10.00 on certain goods and services, an additional five cents ($0.05) is added to the The forecast for Orange County's half-cent sales tax used in this transaction and dedicated to the transit services funded under updated Plan was developed by Moody's Analytics in this Plan. Under state law, items such as food, gasoline, November 2016, using county-level personal disposable medicine, health care, and housing are excluded from the tax. Final Page 46 of 65