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