HomeMy WebLinkAboutRES-2005-053 Orange Co Position on Increasing the State Cigarette TaxORANGE COUNTY BOARD OF COMMISSIONERS
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A RESOLUTION REGARDING INCREASING THE STATE CIGARETTE
TAX TO SUPPORT COUNTY MEDICAID RELIEF AND FARMLAND
PRESERVATION
WHEREAS, only the states of New York and North Carolina require county
governments to participate in all the costs of Medicaid, and
WHEREAS, the state of New York recently took action to lower the costs of Medicaid
to its counties, and
WHEREAS, Medicaid costs for counties are far outstripping county governments'
ability to provide for those increases through the traditional source of flexible revenue - i.e., the
property tax, and
WHEREAS, Orange County will spend a projected $3.6 million in 2004-OS for
Medicaid, which equates to 3.56 cents on the property tax rate, and
WHEREAS, North Carolina counties have no opportunity under federal and state law to
control Medicaid expenditures, and
WHEREAS, a plan to completely phase out required county Medicaid expenditures is
desirable, and
WHEREAS, cigarette smoking contributes to health problems that increase Medicaid
costs, and
WHEREAS, the state of North Carolina has the lowest cigarette tax in the nation, and
WHEREAS, an increase in the state cigarette tax could yield significant funds to reduce
the county share of Medicaid, and
WHEREAS, the Orange County Board of Commissioners adopted a resolution in March
2005 supporting an increase in the cigarette tax with a portion of the new revenues being
dedicated as a funding source for the Farmland Preservation Trust Fund and for the creation of
regional processing centers to create value-added products and help promote farm options;
NOW THEREFORE BE IT RESOLVED that the Orange County Board of
Commissioners hereby urges the General Assembly of North Carolina to enact a significant
cigarette tax increase with a substantial portion of that tax to be used to begin aphase-out of
required county contributions to fund Medicaid costs, and with a portion of the new revenues
being dedicated as a funding source for .the Farmland Preservation Trust Fund and for the
creation of regional processing centers to create value-added products and help promote farm
options.
FURTHER BE IT RESOLVED that a copy of this resolution be presented to members
of the General Assembly. _ ~
Adopted this the 23rd day of June, 2005.
Moses Carey, Jr., Chair
Orange County Board of