Agenda 02-17-22; 12-2 - Information Item - Financial Report-Second Quarter FY 2021-22

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3 implemented a Long-Time Homeowners Assistance Program utilizing ARPA funds to assist low-income residents negatively impacted by the revaluation. • Motor vehicles are 49% of the Motor Vehicle budget as compared to 52.7% in the prior fiscal year. This is a Timing Variance as there remains an additional of$828,759 in December collections not yet reflected in this quarterly report. That would bring revenue performance consistent with the prior fiscal year at $5.8 million. • Motor vehicle taxes are payable on the vehicle renewal date and the tax is based on market value of the vehicle. The State remits this tax to the County on a monthly basis. • Sales Tax for Articles 39, 40 and 42 are 29.9% which is similar to the prior fiscal year. The amounts listed above includes collections for three months (July, August and September); there is a three-month revenue lag from the NC Department of Revenue (NCDOR). This sales tax distribution reflects a sustained economic recovery despite the Omicron variant. Sales tax revenues collected for FY 2021-22 are $7.9 million as compared to $7.1 million the prior fiscal year or 11.8% increase over the prior fiscal year through the second quarter. The State-wide increase for the same period is 14%. The County lag behind the State percentage is attributed to a large taxpayer refund of$2 million. Article 39 sales tax is a one cent tax on every retail dollar and is collected based on where the retail item is actually received ("point of delivery"). Example: When a shopper purchases a merchandise at a local mall, this merchandise may cost $50, creating a collection of Article 39 sales tax of$0.50 which will go to the county and/or municipality where the mall is located if the shopper leaves with the merchandise. If the shopper were to buy the item in one county, and have it shipped to another county for delivery, then the tax would be reflected in the receiving county's collections. This sales tax is Orange County's largest Article sales tax and reflects the broadest retail sales trends within the County. Article 40 sales tax is a half cent tax on every retail dollar ($0.25 for the same $50 merchandise mentioned in Article 39) but differs from the Article 39 sales tax in that it is collected based on Statewide retail sales and then distributed to counties and municipalities based on the percentage of the state population residing within the county and/or municipality. This tax reflects the broadest retail trends across the entire state and is less affected by retail sales growth in any one local government jurisdiction. Article 42 sales tax is a half cent tax on every retail dollar, and is a point of delivery similar to Article 39 sales tax. 3