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6 <br /> DRAFT <br /> The County of Orange <br /> The State of North Carolina <br /> RESOLUTION LEVYING THE THIRD ONE-HALF CENT (1/2¢) <br /> LOCAL GOVERNMENT SALES AND USE TAX AND PRESCRIBING <br /> THE METHOD OF DISTRIBUTION OF THE PROCEEDS <br /> WITHIN ORANGE COUNTY <br /> WHEREAS, The General Assembly has authorized the Orange County Board of Commissioners to levy a one- <br /> half percent (1/2%) local sales and use tax by enacting N.C.G.S. 105-517(b) in Section 34.14(a) of Session <br /> Law 2001-424; and, <br /> WHEREAS, The Orange County Board of Commissioners held the public hearing on the issue of adopting this <br /> resolution on June 20, 2002, as required by N.C.G.S. 105-517(b) and proper public notice of the Board's intent <br /> to consider this resolution was provided as required by N.C.G.S. 105-517(b); and, <br /> WHEREAS, The General Assembly levied a one half percent (1/2%) state sales tax effective October 16, 2001 <br /> by enacting Section 34.14(a) of Session Law 2001424, and this tax expires July 1, 2003; and, <br /> WHEREAS, Orange County anticipates losing approximately $3.1 million in funds made available by the <br /> State of North Carolina to replace revenue lost because of legislative action: (1) to repeal sales taxes imposed <br /> on purchases made with Food Stamps; (2) to repeal property taxes imposed on inventories held by <br /> manufacturers, retailers and wholesalers; (3) to repeal taxes on intangible personal property; and, (4) to reduce <br /> taxes levied on residential property owned by low-income elderly taxpayers; and, <br /> WHEREAS, The Orange County Board of Commissioners hereby finds that, particularly in light of the <br /> circumstances cited herein, the levy of The Third One-Half Cent (1/2¢) Local Government Sales and Use Tax <br /> is necessary to adequately finance the operations of the county and the cities and towns herein. <br /> NOW, THEREFORE, BE IT RESOLVED by the Orange County Board of Commissioners: <br /> (1) There is hereby imposed and levied within Orange County The Third one-half cent (1/2¢) Local <br /> Government Sales and Use Tax authorized by Section 34.14(a) of Session Law 2001424 and <br /> codified as Article 44 of Chapter 105 of the General Statutes of North Carolina. The tax hereby <br /> imposed and levied shall apply to the same extent and be subject to the same limitations as are set <br /> forth in said Session Law 2001-424. <br /> (2) Collection of the tax by the North Carolina Secretary of Revenue, and liability therefore, shall <br /> begin and continue on and after the first day of July, 2003, or sooner, if allowed by law. <br /> (3) The net proceeds of the tax levied herein shall be distributed by the Secretary of Revenue on a <br /> monthly basis to Orange County as prescribed by N.C.G.S. 105-520. The amount distributed to <br /> Orange County shall be divided among the county and the municipalities herein in accordance <br /> with the method by which the one percent (1%) sales and use taxes levied in Orange County <br /> pursuant to Article 39 of General Statutes Chapter 105 are distributed. <br /> (4) This Resolution is effective upon its adoption, and a certified copy hereof shall be forwarded to <br /> the North Carolina Secretary of Revenue. <br /> Adopted this _ day of 20_ <br />