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39 <br /> 1 a DEQ agreement totaling approximately$60 million. He said new affordable housing exemptions will bring <br /> 2 total exemptions in FY 2026-27 to approximately$90 million, resulting in approximately $1 million in lost <br /> 3 property tax revenue. <br /> 4 Commissioner Carter asked about the loophole being examined by the House Select Committee <br /> 5 on property tax reform related to ownership structures for LIHTC properties. <br /> 6 Travis Myren confirmed exposure of approximately $120 million in removed valuation, equating <br /> 7 to approximately$750,000 in lost tax revenue. <br /> 8 Commissioner Carter also noted that motor vehicle tax growth appeared high in the notes. <br /> 9 Kirk Vaughn explained that motor vehicles are reappraised annually rather than every four years, <br /> 10 so growth reflects both reappraisal activity and any shift to newer, more valuable vehicles. <br /> 11 Travis Myren also noted that properties damaged by Tropical Storm Chantal did not receive tax <br /> 12 relief in FY 2025-26 because property condition is assessed as of January 1st, but those reduced values <br /> 13 will be reflected in the FY 2026-27 base at approximately$10 million. An additional approximately$154- <br /> 14 155 million in appeals of the FY 2025 values is anticipated for the FY 2026-27 base. Overall, largely driven <br /> 15 by motor vehicle tax growth,the county anticipates approximately$400,000 more in property tax revenue <br /> 16 than projected at the January retreat. <br /> 17 <br /> 18 Slide#4 <br /> FY 2026-27 Sales Tax <br /> FY 2026-27 Sales Tax Assumptions—$500,000 cost to model <br /> - Projecting$1.7 M increase from FY2025-26 Budget with significant uncertainty. <br /> - Reduction in Hold Harmless payment—($500,000) <br /> - Resulting sales tax projection is$1.2 million or 2.7%over FY2025-26 Budget <br /> - When State Medicaid Expenses Grow faster than Sales Tax Revenue, Hold Harmless revenue decreases <br /> Orange County Hold Harmless Trends <br /> 25,00% <br /> 20.00% <br /> 15.00% <br /> x0.00% <br /> 5.00% <br /> 0.00% <br /> ply y'+ bye ry.y0 $. Xe, <br /> -5.00%ti�'l �'t d ryQti ry0's ql <br /> 10.DP% <br /> X5,1,,Tax Revenue Y,Y% -5R M,dI,aid Expenses Y.Y% <br /> ORANGE COUNTY <br /> 4 NORTH CAROLINA <br /> 19 <br /> 20 Travis Myren said the county is now anticipating at least a $500,000 reduction to its hold-harmless <br /> 21 payment in FY 2026-27 based on current trends, representing a new and adverse change from the January <br /> 22 model. <br /> 23 <br /> 24 <br />