The URL can be used to link to this page

Home My WebLink AboutAgenda - 02-17-1998 - 9b1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No A. b ACTION AGENDA ITEM ABSTRACT Meeting Date: February 17, 1998 SUBJECT: Local Legislation -r1% Local Option Sales Tax -------------------------- - - - - -- ------------------------------- DEPARTMENT County Commissioners PUBLIC HEARING YES NO x -------------------------- - - - - -- ------------------------------ BUDGE T AMENDMENT: _YES NO ATTACHMENT(S): INFORMATION CONTACT Resolution from Catawba Chair Margaret W. Brown County TELEPHONE NUMBER Letter from Robert Hibbitts Hillsborough 732 -8181 Chapel Hill 968 -4501 Mebane 227 -2031 Durham 688 -7331 ----------------------------------------------------------------------- PURPOSE: To discuss the Board's position on seeking local legislation to provide additional resources to help meet the present and future needs of the County. BACKGROUND: Please see the attached letter from Robert E. Hibbitts, Chair of the Catawba County Board of Commissioners and the resolution passed by his Board. He indicates in his letter that because of the increased demands on services provided by Catawba County, they feel it necessary to seek local legislation authorizing them to levy an additional one -cent sales tax which would be returned to its point -of- origin. RECOMMENDATION: Discuss and provide direction to County staff and /or County Attorney. =---Z� DISTRIBUI S- ,4dCc_ MEMO To: ; 99 Fellow County Commission Chairmen Across North Carolina From: Robert E. lEbbitts, Chairman, Catawba County Board of Commissioners Subject: Tax Reform Date: January 23, 1998 1 • ..; The Catawba County Board of Commissioners adopted the attached Resolution at its January 20, 1998, meeting, recognizing that growth in the county and demand on County services is out pacing resources. Our Resolution requests our legislative delegation to introduce and see enactment into law a one percent point -of -origin local option sales tax for Catawba County. Such a tax will more evenly spread the responsibility of paying for services to more people, including temporary residents, commuters, illegal immigrants, etc., and will ease the burden on property taxpayers by enabling us to maintain a low property tax rate. The attached Need for Local Tax Reform and letter to our legislators provide additional information. We would encourage your support of our Resolution and offer you our support if your county decides to seek a like tax. If you have any questions or comments, please feel free to contact me at 704 - 323 -8324. am pc: Catawba County Board of Commissioners J. Thomas Lundy, County Manager Steven D. Wyatt, Assistant County Manager Attachments I '••M ,• 71 171 9 Government of Catawba County, North Carolina "Keeping the Spirit Alive Since 1842!" RESOLUTION *Local Government Tax Reform* HFRF.AS, the Catawba County Board of Commissioners is charged with the responsibility to promote the health, safety and welfare of the 128,000 residents of Catawba County, as well as those who work within or visit the County; and HEREAS, the growth in the County's population and commerce is increasing at a record pace, thus crratittg a huge demand for public services and facilities, such as new schools, classroom additions, emesgenry medical services, ambulances, courtrooms, jails, libraries, water and sewer utility lines and parks; and HEREAS, currently property tax payers are carrying a disproportionate share, 701/6 of the burden, for providing the funding for these necessary services and facilities; and, HEREAS, this system of financing local needs is unfair to property owners and inadequate to meet these needs, local government tax reform is urgently needed; and WHEREAS, a one percent local option sales tax returned to its point -of -origin in Catawba County would provide an alternative to ever increasing property taxes, better equalize and more fairly distribute the tax burden among those who live and work in Catawba County, allow the County to build and maintain schools, ambulance bases, libraries, courtrooms and other necessary facilities without becoming a financial burden on those who have made their lifetime investment in their properties in Catawba County; NOW, 'THEREFORE BE IT RESOLVED, the Catawba County Board of Commissioners hereby request the Honorable Austin M. Allran, Cherie K. Berry, C. Robert Brawley, Charles F. Buchanan, Joe L. Kiser, Edgar V. Starnes and Gregory J. Thompson introduce and see enacted into law a one percent point -of- origin local option sales tax for Catawba County, thus accomplishing the goal of reforming the local government taxation system. Adopted this the 20th day of January, 1998. OF 0-4 too s 1 SEAL 1142 �59N,C . ARO,,, Robert E. Hibbius, Chairman Catawba County Board of Commissioners 3 January 21, 1998 (LEGISLATOR) In Re: Tax Reform Dear (LEGISLATOR): 4 CATAWBA COUNTY P.O. Box 389. 100-A South West Boulevard - Newton, North Carolina 28658 -0389 - Telephone (704) 465 -8200 http: / /www. co. Catawba nc.us FAX (704) 465 -8392 Catawba County is facing tremendous challenges due to a growing and changing population. It has become obvious through a year of careful research and study that the needs of our community are out pacing the resources available. We are experiencing a surge of demands on our local school system, community college, criminal justice, emergency services, and public utilities, just to name a few, with no end in sight. Given this reality, the County is forced to take action and request your help. A$er a painstaking evaluation of the options which included merging the three school systems, the Board has determined the best solution to this challenge is to seek authority from the State for a reform of the local system of taxation. By actin on the attached Resolution, we seek authority to levy an additional one -cent sales tax to provide the resources necessary to face the needs of the present and future in Catawba County. Lf your answer is no, I must advise you that we will be forced to continue to place the burden of paying for schools, jails, ambulances, and the like on the backs of homeowners and local businesses through increased property taxes. Currently, this segment of our community is carrying over 700/6 of the local tax burden. With the additional sales tax, we could reduce this burden to a mote equitable 60% and even forego the scheduled 1999 property tax increase scheduled for school bonds. If you choose to igome this problem and the solutions we seek, the citizens of Catawba County simply will suffer greater tau inequity. The sales tax will give businesses and homeowners a break and not hold private property as collateral for public facilities. It will capture the participation of commuters and illegal immigrants in paying for services they are helping to create the need for. A pay -as- you -go sales tax puts the power of taxation in the hands of every consumer. Everyone will have a stake with the purchasing decisions they make --one penny at a time. Elderly folks will be less at risk of losing their lifelong investments in their homes each year at tax time. A one -cent local option sales tax for Catawba County is a concept which time has come. Please give us the means to meet the mandates of school facilities, jails, courtrooms, and the like. Without reform of the local tax system, the inequities will only grow and the needs will continue to be unmet and the quality of life in Catawba County- - something we are all proud of—will deteriorate. None of us want it to be said of us as elected officials that we presided over this deterioration, but it is up to you to act. The Commissioners cannot enact this reform without your help. The 130,000 citizens of Catawba County await your response. Very truly yours, Robert E. Hibbitts, Chairman —atawba County Board of Commissioners amn PC: Catawba County Board of Commissioners .. p�to 5 THE NEED FOR LOCAL TAX REFORM: Note: 1998 property tax rate is 55¢ per $100 valuation Current sales tax to County is 2 %. Current total tax burden is $54.5 million. A. Estimated $9 million revenue source that would be realized by an additional 1% sales tax is equal to approximately one - quarter of the property tax levy of an estimated $39 million. • Current projected sales tax revenue is $15.5 million, or apptoximatel: ,A% of the tax burden. WY; • The additional one -cent sales tax would level it;put to apptily 38% of local tax revenue, or 38¢ of the local tax dollar, thereby v =ing, l u $ hating, the burden on the property owner. < .: °> w >. .... >• Local Tax Prosy Tax Current - 72% Proposed - 62% B. Sales tax captures the participation of more peple - spesponsibility. • Temporary residents, commuters, illegal-0mmigrants ' ged in illegal trades C. Will avert the need for the scheduled 'ta s' a of 3 ¢ ;.dF5% which is equivalent to $2.1 million and future property t2F tn. },.:.rin cr eas . , tax increases have to d b'::- DPY .!'pai y.t,e taxpayeaiump sum annually. If taxes are not paid, homes, businesses ar�,$hiclese subjectrtforeclosure and can be sold if taxes are not paid. : #', .i4 fix :. •fcGJY E. $des tax is based.;: { umptionSphier has control over the purchasing decision — where iauch. Saldk;ts`paid a little at a time, spread over the year --at the urchase.::proposed tax is 1¢ on $1; 10¢ on $10, $1 on $100; $10 on the $100 of }Some items, such as automobiles, fuel and medicine, are exe .affecte;sctadditional 1 ¢ sales tax. F. • School ct `asr<iirnd facilities Industrial parks • Ambulant asl 'EMS bases Transportation • Help for fang'septic tanks Fire protection • Libraries;::;` Drug abuse treatment and education • Law etforcement equipment & facilities • Court and jail facilities • Cie "ater needs • Parks +rr> "`Sever treatment Preventative health programs v...X-::. >,:., Cities and Towns Benefit -- • Brookford, $35,000 Hickory, $2,500,000 • Catawba, $50,000 • Long View, $300,000 • Claremont, $80,000 • Maiden, $250,000 • Conover, $500,000 • Newton, $950,000 O:UIORVBROWMWPDOCSIONECEN SLTXADVN.WPD