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requests to the legislative delegation before then would be helpful <br />to the Senators and Representatives whose districts include Chapel <br />Hill areas. <br />DISCUSSION <br />The attached materials provide a general discussion of several <br />legislative matters. Below is a summary of key points. <br />1. Request for a local bill authorizing a vehicle license tax <br />of up to $15 per year. <br />• Present vehicle license tax authorization for Chapel Hill is <br />limited to $5. <br />• An increase to $10 would generate an additional $90,000 annually. <br />• Several cities have authorization for an annual vehicle license <br />tax greater than $5. The City of Charlotte has authorization for <br />a $20 license tax. <br />• I recommend requesting authorization up to a maximum of $15 based <br />on the discussion with representatives of the legislative <br />delegation. <br />2. Reimbursements for past repeal of local revenue sources <br />including inventory property taxes <br />• The Town now receives about $300,000 in State reimbursement <br />funds. <br />• The Governor has proposed repealing the appropriation of State <br />funds for reimbursements, and authorizing additional local option <br />sales taxes instead. <br />• The NC League of Municipalities supports replacing reimbursements <br />with local option sales taxes distributed so that no locality <br />would receive less than the present reimbursements. <br />3. State -wide enabling legislation authorizing local option <br />revenues as alternatives to the property tax. <br />* A legislative study commission has proposed and the League has <br />supported State -wide authority for local option real estate <br />transfer, hotel /motel, admissions, prepared meals and payroll <br />taxes. <br />* I recommend supporting State -wide legislation authorizing local <br />option admission taxes such as a 3% tax for entertainment and <br />sports events as a reasonable alternative to the property tax. <br />4. Continuation of State funding to help offset local costs of fire <br />protection services to State facilities including University and <br />University Hospitals properties. <br />• The Town receives about $300,000 annually in State funds <br />allocated to local fire departments which protect State property. <br />• These funds help offset the Town's costs of protecting the <br />state's facilities, which benefit citizens of North Carolina. <br />