HomeMy WebLinkAboutRES-2002-071 Resolution Levying the Third One-Half Cent Local Government Sales and Use Tax RES-2002-071 ORANGE COUNTY BOARD OF COMMISSIONERS
A RESOLUTION LEVYING THE THIRD ONE-HALF CENT (112¢)
LOCAL GOVERNMENT SALES AND USE TAX AND PRESCRIBING
THE METHOD OF DISTRIBUTION OF THE PROCEEDS
WITHIN ORANGE COUNTY
WHEREAS, the General Assembly has authorized the Orange County Board of Commissioners to
levy a one-half percent (1/2%) local sales and use tax by enacting N.C.G.S. 105-517(b) in Section
34.14(a) of Session Law 2001-424, as amended by S.L. 2002-123, "An Act to Accelerate the
Additional One-half Cent (1/2¢) Local Option Sales and Use Tax and to Make Conforming and
Technical Changes," and
WHEREAS, the Orange County Board of Commissioners gave proper public notice of the Board's
intent to consider this resolution, as required by Section 10 of S.L. 2002-123, and
WHEREAS, Orange County has lost approximately $3,171,582 in funds made available by the State
of North Carolina to replace revenue lost because of legislative action: (1) to repeal sales taxes
imposed on purchases made with Food Stamps; (2) to repeal property taxes imposed on inventories
held by manufacturers, retailers and wholesalers; (3) to repeal taxes on intangible personal property;
and (4) to reduce taxes levied on residential property owned by low-income elderly taxpayers; and
WHEREAS, the Orange County Board of Commissioners hereby finds that, particularly in light of the
circumstances cited herein, the levy of"The Third One-Half Cent (1/2¢) Local Government Sales and
Use Tax" is necessary to adequately finance the operations of the county and the cities and towns
herein.
NOW, THEREFORE, BE IT RESOLVED by the Orange County Board of Commissioners that:
(1) There is hereby imposed and levied within Orange County the third one-half cent (1/2¢) Local
Government Sales and Use Tax authorized by Section 34.14(a) of S.L. 2001-424, as amended by
S.L. 2002-123, and codified as Article 44 of Chapter 105 of the General Statutes of North
Carolina. The tax hereby imposed and levied shall apply to the same extent and be subject to the
same limitations as are set forth in said S.L. 2001-424.
(2) Collection of the tax by the North Carolina Secretary of Revenue, and liability therefore, shall
begin and continue on and after the first day of December 2002.
(3) The net proceeds of the tax levied herein shall be distributed by the Secretary of Revenue to
Orange County as prescribed by N.C.G.S. 105-520. The amount distributed to Orange County
shall be divided among the county and the municipalities herein in accordance with the method by
which the one percent (1%) sales and use tax levied in Orange County, pursuant to Article 39 of
General Statutes Chapter 105, are distributed.
(4) This Resolution is effective upon its adoption, and a certified copy hereof shall be forwarded to the
North Carolina Secretary of Revenue.
Adopted this 15th day of October 2002.
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