7-a - Report on the Orange County Tax Equity Study

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: January 23, 2018 Action Agenda Item No. 7-a SUBJECT: Report on the Orange County Tax Equity Study DEPARTMENT: County Manager’s Office ATTACHMENT(S): 1 – Orange County Tax Equity Presentation 2 – Orange County Tax Equity Full Report INFORMATION CONTACT: Bonnie Hammersley, 919-245-2306 Travis Myren, 919-245-2308 PURPOSE: To receive a report on the Orange County Tax Equity Study completed by David Mitchell, CCM Economics, LLC. BACKGROUND: In 1987, the County was engaged in a study of tax equity between the County and each of the municipalities within the County. That study, known as the Wicker Study, examined the different levels of municipal and county taxes that residents of Mebane, Carrboro, Hillsborough, and Chapel Hill paid relative to the levels of government provided benefits that they received. Residents of Orange County who did not reside in a municipality were also examined. In 2017, the County contracted with David Mitchell, Ph.D. of CCM Economics to update the previous tax equity report. This report has updated and expanded upon the previous study of tax equity. The CCM report examines the budgets of local and county governments and combines this information with data from other data sources from the federal and state level to determine how much, on a per capita basis, each citizen is paying in taxes. This tax expenditure is then compared to the level of government provided benefits that each citizen is receiving on a per capita basis. A survey of Orange County residents was also employed to understand which government provided goods and services are being utilized and by whom. Dr. Mitchell will explain the methodology employed in his study, the intricacies of measuring tax equity, the results of the resident use survey, tax expenditures per capita, and the services received by residents of the County on a per capita basis based on where each resident lives. FINANCIAL IMPACT: The Orange County Tax Equity Study was funded using consulting services expenditures available in the County Manager’s Office. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to this item: • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND INEQUITY The fair treatment and meaningful involvement of all people regardless of race or color; religious or philosophical beliefs; sex, gender or sexual orientation; national origin or 1