HomeMy WebLinkAboutRES-2007-030 Resolution Supporting a Real Estate Transfer Tax for Orange County & Other NC Counties~5 ADD l- ~ ~~
ORANGE COUNTY BOARD OF COMMISSIONERS
~~
RESOLUTION
SUPPORTING A REAL ESTATE TRANSFER TAX FOR ORANGE COUNTY AND
OTHER NORTH CAROLINA COUNTIES
WHEREAS, the property taxis the only source of revenue over which counties have control; and
WHEREAS, the State of North Carolina requires counties to pay 15 percent of the state share of Medicaid
- a program for which counties are not allowed to set policy, eligibility criteria, service options or provider rates;
and
WHEREAS, the total county share of Medicaid is now projected to eclipse $517 million during the 2007-
08 fiscal year; and
WHEREAS, it is estimated that in the 2007-08 fiscal year, Orange County will spend $3,924,800 or
approximately 2.4 percent of its expenditures for services to Medicaid eligible residents; and
WHEREAS, other unfunded mandates from the state such as reduced school class sizes are forcing county
property tax rates higher; and
WHEREAS, the North Carolina Department of Public Instruction's School Planning Section 2006 Long
Range Facility Plans recently identified $9.7 billion of school facility needs statewide over the next five years; and
WHEREAS, seven counties in North Carolina -Camden, Chowan, Currituck, Dare, Pasquotank,
Perquimans and Washington- are all authorized by the General Assembly to levy a 1 percent real estate transfer tax;
and
WHEREAS, any revenue source that is made available to one county should be made available to all 100
counties; and
WHEREAS, a priority goal of both the North Carolina Association of County Commissioners and Orange
County is to seek legislation to allow all counties to enact any or all of several revenue options from arnong those
that have already been authorized for any other county, including local option sales taxes, impact taxes and real
estate transfer taxes; and
WHEREAS, a real estate tax is tied closely to the real estate market and generates money to pay for
growth at the time it is needed; and
WHEREAS, a one percent real estate transfer tax is an equitable mechanism for making growth pay for its
impacts that could generate additional funds for Orange County to help meet the demands for new classroom space
and classroom improvements, development of parks, libraries and other infrastructure, and fund other critical needs;
and
WHEREAS, Sen. Bob Atwater of Chatham County has filed Senate Bill 1516, which would allow all
counties that do not have authority fora 1 percent land transfer tax an option to hold a voter referendum to enact
one;
NOW, THEREFORE, BE IT RESOLVED that the Orange County Board of Commissioners urges the
North Carolina General Assembly to authorize Orange County and all other North Carolina counties to enact at least
an additional one percent real estate transfer tax to be used for any lawfiil expenditures.
FURTHER BE IT RESOLVED that copies of this resolution be transmitted to the members of the
General Assembly representing Orange County, the North Carolina General Assembly leadership, the other 99
North Carolina counties, and the North Carolina Association of County Commissioners.
This the 10'h day of April, 2007. t/ `~1~~~ f ' "_
Moses Carey, Jr., Chair
Orange County Board of Co i oners