HomeMy WebLinkAboutAgenda - 03-18-1997 - 9a ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 18, 1997
Action Agenda
Item No. 9-4
SUBJECT: Adoption of 1997 Orange County Legislative Goals
DEPARTMENT: County Attorney PUBLIC HEARING: (Y/1)
BUDGET AMENDMENT: (Y/1)
ATTACHMENT(S): INFORMATION CONTACT:
Resolution Regarding Legislative Matters Geof Gledhill
3/18/97 Attorney Draft Letter re: Legislation of 732-2196
Orange County
Draft OC Resolution- Occupancy Tax TELEPHONE NUMBERS:
3/17/97 CH Agenda Item- Occupancy Tax Hillsborough 732-8181
3/18/97 Draft Letter re: Eno River Park Chapel Hill 968-4501
3/12/97 Conservation Trust Letter Durham 688-7331
Carrboro Legislation-Privilege License Tax Mebane 227-2031
PURPOSE: To consider adopting a resolution regarding legislative matters to be submitted to the
1997 Session of the General Assembly.
BACKGROUND: At their meeting on March 5, 1997, the Board of Commissioners held.a public
hearing on proposed legislation to be submitted to the Orange County legislative delegation for
introduction in the 1997 Session of the North Carolina General Assembly. After receiving public
comments and conducting deliberations,the Board provided direction to the County Attorney to
draft several proposed bills. The Board also asked the Attorney to draft a document that would
convey the Board's support for various legislative initiatives of statewide applicability.
The attached"Resolution Regarding Legislative Matters" (see pages 3-11) incorporates by reference
draft legislation prepared by the Attorney on the following subjects:
• authorizing Orange County to levy an excise tax on instruments conveying real property in
Orange County
• authorizing Orange County to adopt an entertainment tax on events at large facilities in Orange
County
• adding the status of heterosexuality,homosexuality, and bisexuality to those classifications
authorized protection by a County civil rights ordinance
• clarifying the authority of Orange County to regulate the use, storage, disposal, and labeling of
pesticides in certain areas
The resolution also indicates Board support for the following statewide initiatives:
• the Governor's Smart Start program and his proposal to expand its availability in North Carolina
• authorizing counties to levy excise taxes on instruments conveying real property
�
2 �L
• making more equitable the manner in which State excise taxes on beer, wine, and spirituous
liquor are assessed
Prior to considering adoption of this resolution, the Board needs to officially close the March 5
public hearing. The Board may also want to review written comments, if any, received from the
public since March 5, and determine whether any such comments would lead to additional or
modified bill drafting by the Attorney. The Board may also want to discuss whether to indicate
their support for any legislative matters being considered by Orange County's municipal governing
boards (distributed with the March 5, 1997 agenda, and retransmitted under separate cover with this
agenda) and whether there are any additional County legislative matters to be brought to the
attention of the Orange County legislative delegation.
There are a number of legislative issues that have come to our attention since the March 5 meeting
that the Board may want to consider at the March 18 meeting:
• whether to adopt a resolution(see draft at page 15) similar to one to be considered by the Chapel
Hill Town Council on March 17 (see pages 16-17), that would request the General Assembly to
approve legislation clarifying that the Orange County occupancy tax is applicable to all guest
accommodations at the Carolina Inn
• whether to support statewide legislation that would provide that farmers who sell land in the use
value program will not have to pay deferred property taxes on the property sold, if they sell to
other farmers who will keep that land in the use value program
• whether to request special funding for the Eno River park project, as outlined in the attached
draft letter from the Chair(see page 18)
• whether to indicate support for the request by the Conservation Trust of North Carolina for
statewide legislation that would increase financial incentives for private landowners who donate
land or interest in land for public-interest conservation purposes (see pages 19-20).
Note also that since the Commissioners' March 5 meeting,the Carrboro Board of Aldermen have
indicated plans to request that the Town Charter be amended to permit the levy of privilege taxes on
the basis of annual gross receipts of businesses subject to that tax(see page 21).
RECOMMENDATION(S): The Manager recommends that the Board: 1)close the public hearing
on 1997 legislative matters that was opened on March 5, 1997; 2)receive as part of the formal
record of the public hearing any written comments submitted by citizens since the opening of the
March 5 public hearing; 3)adopt the attached"Resolution Regarding Legislative Matters" or a
similar resolution that incorporates any additional legislative initiatives that the Board may approve
at the March 18 meeting; and 4)direct the County Attorney to transmit the attached, or a similar,
letter re: "Legislation of Orange County",to the members of the Orange County legislative
delegation prior to the March 27 deadline for submitting local legislation.
3
NORTH CAROLINA
RESOLUTION REGARDING
ORANGE COUNTY LEGISLATIVE MATTERS
BE IT RESOLVED by the Board of Commissioners of Orange
County that the Board hereby requests the Senators and
Representatives representing Orange County to introduce and
support the following legislative matters :
1 . AN ACT TO AUTHORIZE ORANGE COUNTY TO LEVY AN EXCISE TAX
ON INSTRUMENTS CONVEYING REAL PROPERTY IN ORANGE COUNTY (Exhibit
A to this Resolution) .
2 . AN ACT TO AUTHORIZE ORANGE COUNTY TO ADOPT AN
ENTERTAINMENT TAX ON EVENTS AT LARGE FACILITIES IN ORANGE COUNTY
(Exhibit B to this Resolution) .
3 . AN ACT TO ADD THE STATUS OF HETEROSEXUALITY,
HOMOSEXUALITY AND BISEXUALITY TO THOSE CLASSIFICATIONS AUTHORIZED
TO BE PROTECTED BY AN ORANGE COUNTY CIVIL RIGHTS ORDINANCE
(Exhibit C to this Resolution) .
4 . AN ACT TO CLARIFY THE AUTHORITY OF ORANGE COUNTY TO
REGULATE THE USE, STORAGE, DISPOSAL, LABELING, OR APPLICATION OF
PESTICIDES IN AREAS SUBJECT TO REGULATION BY THE NORTH CAROLINA
PESTICIDE BOARD IN EXERCISING ITS PLANNING AND ZONING AUTHORITY
UNDER ARTICLE 18 OF CHAPTER 153A OF THE GENERAL STATUTES (Exhibit
D to this Resolution) .
BE IT FURTHER RESOLVED that the Board of Commissioners of
Orange County requests its legislative delegation to support :
1 . the continuation of the Smart Start Program and the
initiative of the Governor to improve the Smart Start Program and
expand its availability within the State of North Carolina;
4
2 . legislation which would authorize counties to levy an
excise tax on instruments conveying real property in accordance
with the initiative of the North Carolina Association of County
Commissioners;
3 . legislation which would change and make more equitable
the manner in which State excise taxes on beer, wine and
spirituous liquor are assessed as proposed by and supported by
the North Carolina Association of Alcoholic Beverage Control
Boards.
Upon motion of Commissioner seconded by
Commissioner the foregoing resolution was
adopted this the 18th day of March, 1997 .
I, Beverly A. Blythe, 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 March 18, 1997 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 1997 .
Clerk to the Board of Commissioners
lsg-8
97leg.res
5
Exhibit A
AN ACT TO AUTHORIZE ORANGE COUNTY TO LEVY AN EXCISE TAX ON
INS`T'RUMENTS CONVEYING REAL PROPERTY IN ORANGE COUNTY
The General Assembly of North Carolina enacts :
Section 1 . Excise Tax.
(a) Authorization. The Orange County Board of
Commissioners may, by resolution, levy an excise tax on
instruments conveying certain interests in real property in
Orange County. The tax imposed may not exceed one dollar ($1 . 00)
on each one hundred dollars ($100 . 00) or fraction thereof of the
total consideration or value of the interest conveyed, including,
in the case of a sale, the value of any lien or encumbrance
remaining on the property at the time of sale. This tax is in
addition to the tax levied by Article 8E of Chapter 105 of the
General Statutes .
The value of a lease subject to this tax shall be computed
on the basis of the present value of the fixed lease payments
and, if the lease payments are based in whole or in part on the
lessee' s receipts, the estimated amount of the lessee ' s receipts .
Based upon the recommendation of the Orange County Finance
Director, the Board of Commissioners shall, at least annually,
set the discount rate to be used to determine the present value
of lease payments . Such determination shall be conclusive.
(b) Scope. A tax levied under this section applies to all
instruments conveying an interest in real property in Orange
County except an instrument :
(1) conveying an interest in real property from the United
States, the State, or a political subdivision of the
State;
(2) recording a lease for a term of 10 years or less,
unless :
a. the lease gives the lessee an option to renew the
lease for a period that, when added to the term of
the lease, exceeds 10 years;
b. the lease is for substantially the same property
and is between the same parties as a lease
previously recorded, and the term of the new
lease, when added to that of the previous lease,
exceed 10 years; or
C . the lease requires or permits the property to be
transferred to the lessee for less than the fair
market value of the property;
6
(3) securing indebtedness; or
(4) recording a transfer in which no consideration is due
the transferor by the transferee.
In addition, this tax does not apply to conveyances of an
interest in real property by operation of law, by will, by
intestacy, by gift, by merger or consolidation.
(c) Collection. A tax levied under this section is payable
by the transferor of the interest to the Orange County Director
of Revenue. The transferor in the case of a Sheriff ' s deed is
herein defined to be the "debtor" whose property is sold pursuant
to judicial process . The Sheriff is hereby authorized to pay the
tax on behalf of the debtor/transferor and to charge the tax
levied under this section to the account of the debtor as a cost
of sale. This tax shall be paid at the office of the Director of
Revenue before the instrument conveying the interest is recorded.
The Director of Revenue shall have the authority to require any
documentation, including an affidavit of value, the Director of
Revenue deems necessary to establish the accuracy of the tax to
be paid. The Director of Revenue shall stamp or otherwise mark
each instrument subject to the tax to indicate that the tax has
been paid. The Orange County Register of Deeds may not accept
for recordation an instrument subject to a tax levied under this
section unless the instrument bears the mark of the Director of
Revenue indicating that the tax has been paid.
(d) Use and Distribution of Tax Revenue. Orange County may
retain in its general fund three percent (3%) of the gross
proceeds of the tax as costs of collection. The remaining
proceeds of the tax shall be retained by the County and placed in
a Capital Reserve Fund to be expended only for capital projects,
including debt service for capital projects . All interest earned
from investment of the funds in the Capital Reserve Fund shall be
held and expended only in accordance with the provision of this
subsection.
(e) Penalties . A person who knowingly fails or refuses to
pay a tax levied under this section, who knowingly aids another
to fail to pay a tax levied under this section, or who, to avoid
paying part or all of the tax due under this section, knowingly
misstates the total consideration for an interest conveyed is
guilty of a Class 3 misdemeanor and is punishable by imprisonment
as provided by law and a fine of not less than one hundred
dollars ($100 . 00) nor more than the amount of tax that is due and
payable.
(f) Taxes Recoverable by Action. If a transferor fails to
pay a tax imposed by this section within 30 days of the Revenue
Director' s demand that the transferor pay the tax, the tax may be
recovered by Orange County in an action brought in the General
Court of Justice, Superior or District Court, of the county. In
an action to recover a tax imposed under this section, costs of
7
court shall include a fee to the county of twenty-five dollars
($25 . 00) for the expense of collection.
(h) Effective Date and Application. A tax levied under
this section shall become effective on the first day of a month,
as designated in the resolution levying the tax, and may not
become effective for at least 30 days after the adoption of the
resolution. A tax levied under this section applies to
instruments that are recorded on or after the effective date of
the levy, except instruments executed on or after that date that
convey an interest in real property pursuant to a written
contract recorded before the effective date.
(i) Repeal . A tax levied by this section may be repealed
by a resolution adopted by the Orange County Board of
Commissioners . Repeal of a tax levied under this section shall
become effective on the first day of a month and shall apply to
instruments recorded on or after the effective date of the
repeal. Repeal of a tax levied under this section does not
affect a liability for this tax that attached before the
effective date of the repeal .
Sec. 2 . This act is effective upon ratification.
lsg-8
exctax.exA
P
8 '
Exhibit B
AN ACT TO AUTHORIZE ORANGE COUNTY TO ADOPT AN ENTERTAINMENT TAX
ON EVENTS AT LARGE FACILITIES IN ORANGE COUNTY
The General Assembly of North Carolina enacts :
Section 1 . Admissions Tax.
(a) Authorization and scope. Notwithstanding the
provisions of G.S. 105 .37 .1 (b) , the Orange County Board of
Commissioners may, by resolution, levy an entertainment tax on
every admission ticket purchased for admission to an
entertainment, amusement, athletic or commercial event for which
an admission is charged and which is presented in Orange County
in a facility having a seating capacity greater than 15, 000 .
This tax does not apply, however, to athletic events sponsored by
the North Carolina High School Athletic Association that involve
participants at or below high school level . The tax shall be at
a rate of not more than one dollar ($1 . 00) per admission ticket
purchased. This tax is in addition to any other State or local
tax.
(b) Collection. Every person, firm, corporation, or
organization selling admission tickets taxable under this section
shall collect the tax. This tax shall be collected at the same
time as the charge for furnishing a taxable admission ticket and
shall be paid by the purchaser to the seller of the admission
ticket as trustee for and on account of Orange County. The tax
shall be stated and charged separately from the sales price. The
tax shall be added to the admission price and shall be passed on
to the purchaser instead of being borne by the seller.
(c) Administration. Orange County shall administer a tax
levied under this section. A tax levied and collected under this
section is due and payable to the Orange County Director of
Revenue on or before the 15th day of the month following the
month in which the tax accrues . Every person, firm, or
corporation liable for the tax shall, on or before the 15th day
of each month, prepare and render a return on a form prescribed
by Orange County. The return shall state the total number of
admissions subject to the tax that were sold in the preceding
month. A return filed with the Director of Revenue under this
section is not a public record as defined in G.S. 132-1 and may
not be disclosed except as required by law. Orange County may,
by resolution, establish additional procedures for collection,
reporting, remittal and use of a tax levied under this section.
(d) Penalties . A person, firm, or corporation who fails or
refuses to file the return required by this section shall pay a
tax penalty of ten dollars ($10 . 00) for each day' s omission. In
case of failure or refusal to file the return or pay the tax for
a period of 30 days after the time required for filing the return
or for paying the tax, there shall be an additional tax penalty
9
of five percent (5%) of the tax due, with an additional tax
penalty of five percent (5%) for each additional month or
fraction thereof until the tax is paid. The Board of County
Commissioners may, for good cause shown, compromise or forgive
the tax penalties imposed by this section.
Any person who willfully attempts in any manner to evade a
tax imposed under this section or who willfully fails to pay the
tax or make and file a return shall, in addition to all other
penalties provided by law, be guilty of a misdemeanor.
(e) Use and distribution of tax revenue. The Board of
.Commissioners of Orange County shall use the proceeds collected
from this tax solely for capital projects . The proceeds shall be
placed in a Capital Reserve Fund to be expended only for capital
projects, including debt service for capital projects . All
interest earned from investment of the funds in the Capital
Reserve Fund shall be held and expended only in accordance with
the provisions of this subsection.
(f) Effective date of the levy. A tax levied under this
section shall become effective on the date specified in the
resolution levying the tax. That date must be the first day of a
calendar month, however, and may not be earlier than the first
day of the second month after the date the resolution is adopted.
(g) Repeal . A tax levied under this section may be
repealed by a resolution adopted by the Orange County Board of
Commissioners . Repeal of a tax levied under this section shall
become effective on the first day of a month and may not become
effective until the end of the fiscal year in which the repeal
resolution was adopted. Repeal of a tax levied under this
section does not affect liability for a tax, its collection and
its payment to Orange County that was attached before the
effective date of the repeal, nor does it affect a right to a
refund of a tax that accrued before the effective date of the
repeal .
Sec . 2 . This act is effective upon ratification.
lsg-8
enttax.exB
10 '
Exhibit C
AN ACT TO ADD THE STATUS OF HETEROSEXUALITY, HOMOSEXUALITY AND
BISEXUALITY TO THOSE CLASSIFICATIONS AUTHORIZED TO BE PROTECTED
BY AN ORANGE COUNTY CIVIL RIGHTS ORDINANCE
The General Assembly of North Carolina enacts :
Section 1 . Section 14 of Chapter 358 of the 1993 Session
Laws is amended as follows :
Paragraph (a) of Section 6 of Chapter 246, Session Laws of
1991, reads as rewritten:
" (a) The Board of Commissioners of Orange County (hereafter
"Board of Commissioners" ) may adopt an ordinance (hereafter "the
Ordinance" ) to prohibit discrimination in employment, housing,
and public accommodations on the basis of race, color, religion,
gender, national origin, age, disability, marital status,
familial status,_ a d veteran status, heterosexuality,
homosexuality and bisexuality.
The Board of Commissioners may include in the Ordinance a
prohibition of language or conduct or both directed at an
individual or at a group of individuals because of that
individual ' s or group of individuals ' actual or perceived race,
color, religion, gender, national origin, age, disability,
marital status, familial status,_ and veteran status,_
heterosexuality, homosexuality and bisexuality which communicates
in a threatening manner words that insight imminent lawless
action or which tend to insight an immediate breach of the
peace. "
Sec. 2 . This act applies only to Orange County.
Sec . 3 . This act is effective upon ratification.
lsg-8
hetsex.exC
. l
11
Exhibit D
AN ACT TO CLARIFY THE AUTHORITY OF ORANGE COUNTY TO REGULATE THE
USE, STORAGE, DISPOSAL, LABELING, OR APPLICATION OF PESTICIDES IN
AREAS SUBJECT TO REGULATION BY THE NORTH CAROLINA PESTICIDE BOARD
IN EXERCISING ITS PLANNING AND ZONING AUTHORITY UNDER ARTICLE 18
OF CHAPTER 153A OF THE GENERAL STATUTES
The General Assembly of North Carolina enacts :
Section 1 . North Carolina General Statutes § 143-465 (d) is
amended by adding the following sentence to the end thereto:
"Notwithstanding the first sentence of this subsection,
Orange County, in the exercise of its planning and zoning
authority under Article 18 of Chapter 153A of the General
Statutes, may, in a manner more stringent than any rule,
regulation or resolution adopted by the North Carolina
Pesticide Board, regulate the use, storage, disposal,
labeling, or application of pesticides . "
Sec . 2 . This act applies only to Orange County:
Sec. 3 . This act is effective upon ratification.
lsg-8
pest .exD `
� 12
`LI 11
LAW OFFICES
COLEMAN, GLEDHILL & HARGRAVE
A PROFESSIONAL CORPORATION
129 E.TRYON STREET
P.O.DRAWER 1529
HILLSBOROUGH,NORTH CAROLINA 17278
919-732-2196 FROM THE DESK OF
FAX 919-732.7997 GEOFFREY E.GLEDHILL
March 18, 1997
Representative Joe Hackney
Representative Verla C. Insko
Senator Eleanor Kinnaird
Senator Howard Lee
State Legislative Building
Raleigh, North Carolina 27611
RE: Legislation of orange County
Dear Representatives and Senators :
The Board of Commissioners of Orange County has asked me to
request that you introduce four local bills during the 1997
session of the General Assembly. Each of these bills covers a
matter of importance to Orange County.
Orange County conducted a public hearing on these bills on
March 5, 1997 . The Board of Commissioners appreciates Senator
Kinnaird attending that public hearing to hear, first-hand, the
comments made by the people of Orange County.
There were a number of speakers attending the public hearing
who spoke in support of legislation which would enable Orange
County to expand the coverage of its Civil Rights Ordinance to
prohibit discrimination based on a person being heterosexual,
homosexual or bisexual . The Orange County Human Relations
Commission supports this legislative initiative. The Chair of
the Commission presented it and spoke for the Commission in
support of it . This legislative initiative has also been
supported by and continues to be supported by the Town Council of
Chapel Hill and the Board of Aldermen of the Town of Carrboro.
Orange County did receive one letter in opposition to including
protection for persons who are homosexual .
There was also support, presented orally and in writing, for
a local act which would clarify that Orange County, by exercising
its planning and zoning authority, can regulate pesticide use
more stringently than the North Carolina Pesticide Board. The
zoning regulations contemplated by the County in this regard have
13
Representatives Hackney and Insko
Senators Kinnaird and Lee
Page 2
March 18, 1997
to do principally with the use of pesticides in land uses such as
golf courses, the monitoring of their use, insuring that persons
qualified to use pesticides are the ones using them and requiring
persons using pesticides to provide notice to those likely to
encounter pesticides of their use, for example by sign following
pesticide spraying.
No one spoke in opposition to the other two local
initiatives, each of which would provide Orange County with an
additional source of revenue for capital expenditures . As each
of you know, Orange County is experiencing tremendous growth. It
needs now and will need in the future new schools, improvement
and expansion of its existing schools and new judicial and other
government facilities to adequately provide the services demanded
by the people of Orange County and those visiting it . Both of
the revenue bills sought are focused on these capital needs .
Land transfers almost always impact the schools of Orange County
and forecast the need for new school facilities . Persons using
the large entertainment venues in Orange County significantly
increase the demand on Orange County' s judicial and other
government facilities . The facilities are being expanded now and
will soon need to be expanded more.
The resolution enclosed also seeks your support for
statewide initiatives . The Smart Start Program has been very
successful in Orange County. Orange County seeks your continued
support of this early childhood program and at the increased
levels proposed by Governor Hunt .
The North Carolina Association of County Commissioners is
seeking legislation which would authorize counties to levy an
excise tax on instruments conveying real property as an
alternative source of revenue for counties . Orange County
supports this initiative. And, i.f it is successful, Orange
County' s local bill to authorize this excise tax can fall away.
Enclosed is information received by Orange County from its
ABC Board. Orange County supports the initiative of the State
ABC Board for a more equitable funding of the State Alcoholic
Beverage Control Commission. The vast majority of the State
Commission' s work load relates to beer and wine oversight . The
vast majority of the revenue used to operate the State ABC
Commission comes from excise taxes on spirituous liquor. The
redistribution of the revenue for this purpose will be a direct
benefit to Orange County. The net proceeds of the ABC operation
come to the County' s general fund.
14
Representatives Hackney and Insko
Senators Kinnaird and Lee
Page 3
March 18, 1997
Thank you for your help in introducing the local legislation
requested in this letter and your support of it as it moves
through the legislative process . Thank you also for your support
of the Statewide legislative initiatives which are included in
the enclosed Resolution. I am ready and willing to help in any
way that I can in the legislative process . Please call on me if
I can help.
Very truly yours,
COLEMAN, GLEDHILL & HARGRAVE, P.C.
Geoffrey E. Gledhill
GEG/lsg
Enclosures
xc : Bill Crowther, Chair
Margaret Brown
Moses Carey, Jr. -
Alice Gordon
Stephen Halkiotis
Orange County Board of Commissioners
John M. Link, Jr. ,
Orange County Manager
Michael B. Brough,
Carrboro and Hillsborough Attorney
Ralph D. Karpinos,
Chapel Hill Attorney
lsg-8 _
legdel .ltr
15
ORANGE COUNTY BOARD OF COMMISSIONERS
A RESOLUTION REQUESTING THAT THE NORTH CAROLINA GENERAL
ASSEMBLY ENACT LEGISLATION TO APPLY OCCUPANCY TAXES TO
FACILITIES OF THE UNIVERSITY OF NORTH CAROLINA IN ORANGE COUNTY
ON THE SAME BASIS AS FOR PRIVATE HOTELS AND MOTELS
BE IT RESOLVED, by the Orange County Board of Commissioners that the Board requests:
1. that the General Assembly adopt legislation in the 1997 session to revise the County's
occupancy tax to apply to University facilities in Orange County on the same basis as the
occupancy tax applies to private accommodations for transient occupancy;
2. that this legislation be prepared so as not to create a tax liability for the University under
the federal tax codes; and
3. that the bill be prepared in consultation with University representatives in order to ensure
that the latter objective is achieved, as well as in consultation with the Town of Chapel Hill and
Orange County.
This,the 18th day of March, 1997.
16
AGENDA#I
MEMORANDUM
TO: Town Council Members
FROM: Rosemary I.Waldorf,Mayor
SUBJECT: Resolution Regarding Collection of Hotel-Motel Taxes at the Carolina Inn
DATE: March 17, 1997
Earlier this year, the University informed the Town and Orange County that it would cease
collecting hotel-motel taxes for guests staying at the Carolina Inn in connection with University
business.
I understand that the University administration made this decision after consideration of the
legal duties and obligations of the University.as a State institution. I .believe the University
administration acted in good faith based on its responsibilities and interpretation of current laws,
including the cummat version of the Town's local act authorizing the occupancy tax.
However, I feel equally strongly that the Town should request legislation by the'Genual
Assembly this year so that the 'Town will receive hotel-motel taxes from all guests at the
Carolina Inn:
I request that the Council adopt the following resolution.
17
A RESOLUTION REQUESTING LEGISLATION TO APPLY OCCUPANCY TAXES
TO THE UNIVERSITY OF NORTH CAROLINA'S FACILITIES IN THE TOWN OF
CHAPEL HILL ON THE SAME BASIS AS FOR PRIVATE HOTELS AND MOTELS
(97 3-17/R-1)
BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council requests;
1. that the General Assembly adopt legislation in the 1997 session to revise the Town's
occupancy tax to apply to University facilities in the Town on the same basis as the
occupancy tax applies to private accommodations for transient occupancy;
2. that this legislation be prepared so as not to create a tint liability for the.University under the
federal tax codes;and
3. that the bill be prepared in consultation with University representatives in order to ensure that
the latter objective is achieved,as well as in consultation with the Town and County.
This the i r day of Mar* 1997.
18
Orange County Commissioners ® �
P. O. Box 8181
200 S Cameron Street
Hillsborough, NC 2 72 78
Mianr L Cro"16dr,Chair Estab&ked 1752
Stepbere H.HaWimis,Vin Chair
Moses Carry,Jr.
Alice M.Gordon
Margaret W.Brow"
To: Orange County Legislative Delegation
From: William L. Crowther, Chair
Date: March 18, 1997
Re: Park Along the Eno River in Hillsborough
Over the past year, Orange County,along with the Town of Hillsborough,the Hillsborough Area
Chamber of Commerce,The Alliance for Historic Hillsborough,and the Occaneechi Indians,has
been working on the development of a downtown river park in Hillsborough. Aided by the State
Division of Community Assistance,the group has developed a plan featuring a trail system,
performance pavilion, and a reconstruction of an Indian palisade. The park is expected to be a
catalyst for increased heritage tourism in the historic downtown, as well as a place for concerts,
plays, and festivals to benefit local citizens and visitors.
The total cost for the park is estimated at$300,000. To date, almost half of the funds have been
raised. We request that you seek and support the provision of State discretionary funds to assist
us in completing this project. The positive effects that this project will have on downtown
business, historic preservation,Native American recognition,tourism, and recreation make it an
important project to the Town, County, and State.
You Count In Orange County
AREA CODE(919) 732-8181: 968-4501: 688-7331: 227-2031: FAX(919)644-3004
Ezx 2130
19
CONSERVATION TRUST FOR NORTH CAROLINA
March 12, 1997
Mr. William L. Crowther
Chairman, Board of County Commissioners
orange County
PO Box 8181
Hillsborough, NC 27278-8181
.Dear Mr. Crowther:
We request support by the orange County Commissioners for proposed state
legislation co-sponsored by your districts senator Ellie Kinnaird, which will
increase the financial incentives for private landowners who donate land or
interest in land for public-interest conservation purposes. As the attached
"fact sheet" explains this amendment will increase the state income tax credit
for land and conservation easement donations from the current $25,000 cap to
$100,000 for individuals and $250,000 for corporations. orange County's open
space protection initiatives will benefit from the increased state income tax
incentive and inducement for gifts of conservation and recreational lands.
The companion bills introduced in both the State Senate and House will
(1) increase the state income tax credits as an incentive for donating
conservation lands and easements (as recommended by the NC Coastal Futures
Commission, the NC Year of the Mountains Commission, and the NC General
Assembly's Environmental Review Commission in the 1996 and 1997 sessions); and
(2) would establish a small grant-in-aid program within the NC Department of
Environment, Health, and Natural Resources to qualified private land
conservation organizations to defray costs of arranging and receiving donated
lands/easements and to help establish a network of protected riparian buffers,
greenways and natural areas.
The bills have wide bipartisan support and no indication of opposition.
Representatives of the NC Association of County Commissions have indicated
their support. The bills have not yet been scheduled for committee hearings.
We believe that passage of these bills will be a major advantage for
local governments and land conservation organizations across the state, in
promoting and encouraging nonregulatory means to protect important natural
areas, riparian corridors, greenways, local parks and recreational areas, and
other conservation lands. This legislation will be a most helpful supplement
to the state's new Clean water Management Trust Fund, Parks and Recreation
Trust Fund, and Natural Heritage Trust Fund by promoting more donations of
land and helping with conservation education, planning, and costs of arranging
gifts of land.
We ask for your County Commission's support for this proposal and ask
that you express that endorsement to your state General Assembly delegation.
Please call me if you want more explanation.
sincerely,
I L Ja
Charles Roe, CTNC Executive Director
cc: Marvin Collins, Planning Director
enclosures
POST OFFICE BOX 33333 ' RALEIGH,NC 27636-3333 • PHONE 9i9-828-4199 • FAX 9i9-828-45o8 • EMAIL ctnc @mindspring.com
20'
EXPLANATION OF CONSERVATION TAX CREDIT LEGISLATION
N.C. GENERAL ASSEMBLY, 1897 SESSION
SENATE BILLS 176 (structure) and 175 (appropriation)
lead sponsors Sen. E. Sinnaird and H. Horton
HOUSE BILLS 260 (structure) and 241 (appropriation)
lead sponsors Rep. L. Gray and F. Mitchell
PURPOSE: To increase the state income tax credit awarded to private property owners who
voluntarily donate land or easements for conservation purposes. Current state law provides a-
maximum of$25,000 in income tax credits for each land conservation gift made to public agencies or
qualified not-for-profit, private conservation organizations. (The credit is based dollar-for-dollar up to
25% of the appraised value of land gift, but no more than$25,000 per gift. Any unused portion of the
credit can be carried over by the taxpayer for five succeeding years.) The bill (SB 176 and HB 260)
will increase the maximum credit to$100,000 for individual donors and$250,000 for corporate donors.
The appropriation bill (SB 175 and HB 241) provides funds to the NC Department of Environment,
Health and Natural Resources to: (a) cover program information and administrative costs to review
and certify donated properties as qualified for the required public benefits for park, public recreation,
and other land conservation purposes; and (b) establish a grant-in-aid program ($300,000 annually) to
cover expenses of qualified, private conservation organizations incurred in arranging land and easement
donations and managing or monitoring those properties.
LEGISLATIVE ORIGINS: This legislation has been recommended by the Governor's Coastal
Futures Commission and the Year of the Mountains Commission. It was recommended in the
Governor's Coastal Agenda It is recommended by the joint House-Senate Environmental Review
Commission. It is supported by the NC Department of Environment, Health, and Natural Resources.
It is supported by North Carolina business and industry, by local government associations, and by
environmental organizations.
PROGRAM HISTORY: The state income tax credit for land conservation was first enacted in 1983
(with a$5,000 maximum credit). The cap was raised to$25,000 by the General Assembly in 1989. In
the period from 1983-88 ($5,000 cap) 37 land donations (average of 6 gifts per year) qualified for tax
credits (total of 2,383 acres valued at$5,642,000); and from 1989-95 ($25,000 cap) 95 land donations
(average of 13.6 each year) qualified for tax credits (a total of 23,714 acres valued at$34,264,000).
[Note that the maximum tax credit allowed is 25% of the value of the property donated, and,
therefore, the current credit related revenue reduction is less than$300,000 per year for conservation
lands annually donated for public benefit valued at$1,210,000. By DEHNR calculations, the tax credit
program has delivered a 13:1 value to the public, with$13 in donated land values for every$1 of
income tax credits.] The NC DEHNR has no funded staff positions to fulfill its obligations to review
and approve applications for the tax credit, or to promote and explain the program.
RATIONALE FOR THE CREDIT INCREASE: State and local public agencies and a statewide
network of private, non-profit land conservation organizations are responding to the rapid destruction
of North Carolina's natural areas and rural landscapes with programs designed to encourage voluntary
conservation by private landowners. We need alternatives to relying on land use regulations or public
purchases at full market value of all lands important for protection of river natural corridors, natural
wildlife habitats, parks and greenways, beach access, scenic and open space landscapes, and farmlands
in urban areas. New state programs have established funds to acquire and protect important
environmental lands, such as the Clean Water Management Trust Fund, the Natural Heritage Trust
Fund, the Parks and Recreation Trust Fund, and Wetlands Restoration Fund. Those public funds can
go further when landowners are willing to sell for less than the full property value (Le., partially