Agenda - 03-06-1991 - Laserfiche WebLink

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Orange County development impact tax. BACKGROUND Discussions in 1988 Orange County, Chapel Hill and Carrboro representatives proposed in 1988 that the governments request a local bill for a development impact tax as an alternative to impact fees possibly: under 1985 and 1987 local bills. The impact tax would be easier to administer than impact fees. summary of current proygsg1 The Orange County Commissioners are considering making a request for authorization to levy this tax in a proposed impact tax district including Chapel Hill, Carrboro and unincorporated areas of the County. Impact taxes would be allocated to the Towns based on developments in the Towns and their respective extraterritorial and Joint Planning transition areas. The County would retain collection and administration costs. Hillsborough and Mebane could request to be added to the district area subject to the impact tax. Under the draft prepared for the Commissioners' consideration, the Towns could use impact fee revenue for various capital purposes including roads, drainage and police and fire stations. Once effective, the impact tax would preclude establishment of impact fees in Chapel Hill and Carrboro except for water and sewer purposes. The County Commissioners would be the governing board of the impact tax district and would set the impact tax rates per square foot of dwelling space and enclosed commercial floor space. However, the proposal provides that the Commissioners would consult with the Chapel Hill and Carrboro governing boards in setting the tax rates. DISCUSSION This proposal is very similar to that prepared in 1988. The use of a district is intended to make the tax workable if Hillsborough and Mebane choose not to participate. As discussed in 1988, we believe the impact tax is more practical to apply than impact fees, which must be spent with a clear relationship to development from which they are generated.