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HomeMy WebLinkAboutRES-2004-017 Leg Matters - tax on Impact of Land Development to pay for school capital facilities6 ~_l~, - 2~c~ ~ l NORTH CAROLINA. RESOLUTION REGARDING ORANGE COUNTY LEGISLATIVE MATTERS BE IT RESOLVED by the Board of County Commissioners of Orange County that the Board hereby requests the Senator and Representatives representing Orange County to introduce and support the following legislative matter: 1. AN ACT TO AUTHORIZE ORANGE COUNTY TO LEVY A TAX ON THE IMPACT OF LAND DEVELOPMENT FOR THE PURPOSE OF GENERATING REVENUES TO PAY PART OF THE COSTS OF SCHOOL CAPITAL FACILITIES (Exhibit A); Upon motion of Commissioner seconded by Commissioner the foregoing resolution was adopted this the ~ day of ~~~~~-, 2004. I, Donna Baker, Clerk to the Board of Commissioners for the County of Orange, North Carolina, DO HEREBY CERTIFY that the foregoing is a true copy of so much of the proceedings of said Board at a meeting held on ~~~ "- ~, 2004 as relates in any way to the adoption of the foregoing and that said proceedings are recorded in Minute Book No. of the minutes of said Board. WITNESS my hand and the seal of said County, this ~ day of v (/~ 2004. b~ga~! ~d'ar ~• 4t 4__ Clerk to the Board of Commissioners ~,`~~ ~~ ~~ 2 Exhibit A A BILL TO BE ENTITLED AN ACT TO AUTHORIZE ORANGE COUNTY TO LEVY A TAX ON THE IMPACT OF LAND DEVELOPMENT FOR THE PURPOSE OF GENERATING REVENUES TO PAY PART OF THE COSTS OF SCHOOL CAPITAL FACILITIES The General Assembly of North Carolina enacts: Section 1. The following definitions apply to this act: (1) Commercial building enclosed floor space. All enclosed floor space used for any purpose except: a. dwelling units and accessory structures to dwelling units; b. recreational facilities constructed as part of a residential development and used primarily by residents of the development; c. buildings owned by the United States, the State of North Carolina, any county or any municipal corporation; d. buildings owned and operated by non-profit entities for noncommercial and nonresidential purposes; e. schools or day care centers. (2) Dwelling Unit. An enclosure containing sleeping, kitchen, and bathroom facilities designed for and used or held ready for use as a permanent residence by one family. (3) Land development. a. Land development shall mean: 1. construction of any dwelling unit, other than one excluded under subsection (b) of this Section, for which a building permit was issued or should have been issued after the effective date of an ordinance adopted under this act; 2. construction of any commercial building enclosed floor space for which a building permit was issued or should have been issued after the effective date of an ordinance adopted under this act; 3. conversion of a building that adds one or more new dwelling units or that creates new commercial building enclosed floor space; or 4. the initial location of a manufactured home or other dwelling or commercial structure within Orange County. b. For purposes of determining the impact of land development for this act, land development shall .not include: 1. construction of an addition to a dwelling unit; 2. the relocation within Orange County of any structure located within the County on the effective date of an ordinance adopted pursuant to this act or any structure with respect to which an impact tax pursuant to this act has been paid; 3. within the County, the reconstruction or 3 replacement of one dwelling unit by another or the replacement or reconstruction of commercial building enclosed floor space that was in existence on the effective date of an ordinance adopted pursuant to this act or of any such floor space with respect to which an impact tax adopted pursuant to this act has been paid. (4) Net proceeds. The gross proceeds of the tax less the cost to the County of collecting and administering the tax. (5) Person. An individual, partnership, corporation, or other legal entity. (6) Person responsible for the impact of land development. The owner of any dwelling unit or commercial building enclosed floor space on the date an occupancy permit is issued for such dwelling unit or commercial floor space or, if no such permit. is issued, the date the .dwelling unit or commercial floor space is occupied. Section 2. Authorization. The Orange County School Capital Impact Tax. (a) Except as provided in subsection (b) of this Section, Orange County may adopt an ordinance levying a tax on the impact of land development within the County and provide for the administration, enforcement and collection of the tax. (b) Orange County may not adopt an ordinance pursuant to this act if any ordinance pertaining to a system of impact fees to provide for capital improvements to public schools within Orange County, adopted pursuant to Sections 17-18.1 of Chapter 460 of the 1987 Session Laws and Chapter 324 of the 1991 Session Laws, is in effect. Section 3. Use of Tax Proceeds. The purpose of the tax authorized by this act is to generate funds to partially offset the cost of constructing new school capital facilities or replacing, expanding or improving existing school capital facilities necessitated in part by new growth within Orange County. Accordingly, the net proceeds generated by the tax authorized by this act shall be deposited by Orange County in its capital reserve improvements fund or funds established under Part 2 of Article 3 of Chapter 159 of the General Statutes and may be expended, to the extent otherwise authorized by law, only for capital improvements projects related to public schools. Section 4. Liability; Administration. An ordinance adopted pursuant to this act shall provide that: (1) A person responsible for the impact of land development shall pay an impact tax for each square foot of dwelling space and commercial building enclosed floor space for which an occupancy permit is issued or, if no such permit is issued, for each square foot of dwelling space in an occupied dwelling and for each square foot of occupied enclosed floor space in a commercial building. (2) The tax shall be due on or before the date an occupancy permit is initially issued for the dwelling unit or commercial building enclosed floor space in question or, if no such permit is issued, the date such dwelling unit or commercial floor space is initially occupied. However, no tax due shall be considered delinquent until sixty (60) days after the tax becomes due. There shall be added to delinquent taxes interest at the legal rate. (3) Taxes authorized by this act may be collected pursuant to G.S. 153A-147 or G.S. 160A-207. In addition, taxes 4 authorized by this act may be recovered in a civil action in the nature of debt including an award of reasonable attorney fees as part of costs. Section 5. Rates. Orange County shall establish annually at the time of the adoption of its annual budget the tax rate to be levied per square foot of dwelling space and per square foot of commercial building enclosed floor space for the ensuing fiscal year. Different tax rates may be established for different types of dwelling units and different types of commercial building enclosed floor space. Section 6. Provisions for repeal of other local acts, disclosure requirements and effective date. (a) Orange County may repeal all or part of an ordinance pertaining to a system of impact fees to provide for capital improvements to public schools within Orange County, adopted pursuant to Sections 17-18.1 of Chapter 460 of the 1987 Session Laws and Chapter 324 of the 1991 Session Laws. With respect to an ordinance pertaining to a system of impact fees to provide for capital improvements to public schools within Orange County, Orange County may not adopt an ordinance pursuant to Sections 17-18.1 of Chapter 460 of the 1987 Session Laws and Chapter 324 of the 1991 Session Laws while an ordinance adopted pursuant to this act is in effect. Section 7. Disclosure Requirements. Whenever the sale of real property located in Orange County involves new construction, the seller shall prepare and sign, and the buyer shall receive and sign, a disclosure statement. The disclosure statement shall either be included in a contract of sale or contained in a separate document executed prior to the execution of a sales contract. This disclosure statement shall fully and completely disclose that the owner of the property at the time an occupancy permit issued for the new construction or, if no occupancy permit is issued, the date the new construction is occupied, may be subject to a tax levied by the County on the impact of land development. If a seller fails to make such a disclosure and the buyer suffers injury as a result of the seller's failure to disclose, the seller shall be liable to the buyer to the extent of the buyer's injury. Section 8. Refunds. Tf this act or any ordinance adopted under this act is declared to be unconstitutional or otherwise invalid, by a final decision of a court of competent jurisdiction, then any impact taxes collected under this act shall be refunded to the person paying them together with interest at the same rate paid by the Secretary of Revenue on refunds for tax overpayments. Section 9. Limitations on Actions. (a) Any action contesting the validity of an ordinance adopted under this act must be commenced not later than nine months after the effective date of such ordinance. (b) Any action seeking to recover an impact tax must be commenced not later than nine months after the impact tax is paid.. Section 10. This act applies to Orange County only. Section 11. This act is effective when it becomes law.