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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: June 24, 2008 <br />Action Agenda <br />Item No. ~ -d <br />SUBJECT: Potential One-Quarter Cent Sales Tax Increase Referendum Public Hearing, <br />Discussion and Resolution <br />DEPARTMENT: County Manager PUBLIC HEARING: (Y/N) Yes <br />ATTACHMENT(S): <br />Draft Resolution Regarding the Conduct of <br />an Advisory Referendum on the Question INFORMATION CONTACT: <br />of Whether to Levy a Local Sales and Use Barry Jacobs, Chair <br />Tax Laura Blackmon, 919-245-2300 <br />Donna Coffey, 919-245-2151 <br />PURPOSE: To provide an opportunity for the public to comment on and the Board to discuss <br />and consider taking action on, a potential November 4, 2008 referendum on cone-quarter cent <br />additional sales tax in Orange County. <br />BACKGROUND: As part of a comprehensive and complicated "swap" of county and state <br />revenue sources approved by the North Carolina General Assembly during its 2007 Session, <br />the legislature authorized county boards of commissioners to levy, subject to voter approval, an <br />additional one-quarter cent county sales and use tax. <br />On June 24, 2008, Commissioners directed staff to schedule, for their August 19, 2008 meeting, <br />a public hearing and possible decision item on a potential one-quarter cent sales tax increase <br />referendum. Tonight's public hearing offers community members an opportunity to comment on <br />the potential new one-quarter cent sales tax. Following the public hearing, the Board may <br />discuss, and make a decision regarding, the potential of including a referendum to increase the <br />sales tax by one-quarter cent in Orange County on the upcoming November 4, 2008 ballot. <br />Should voters approve a new one-quarter cent sales tax on November 4, 2008: <br />• April 1, 2009 is the earliest date that the additional sales tax would become effective if <br />Commissioners levied the sales tax via resolution following a November 4, 2008 <br />referendum. <br />• The State would distribute the additional one-quarter cent sales tax to counties based on <br />point of delivery and not on a per capita basis. <br />• As authorized by the General Assembly, the new sales tax would not apply to consumer <br />food purchases. <br />