HomeMy WebLinkAboutAgenda - 05-29-1997 - 3 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
Action Agenda
Item No. _
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 29, 1997
SUBJECT: Adoption of a Policy regarding Payment in Lieu of Taxes in certain leases
executed by the County
DEPARTMENT: PURCHASING AND Public Hearing: No
CENTRAL SERVICES Budget Amendment Reqd? No
ATTACHMENT(S): INFORMATION CONTACT:
Pam Jones, ext. 2650
Policy Geof Gledhill, Co. Attorney
Telephone'Number-
Hillsborough 732-8181
Chapel Hill 967-9251
Mebane 227-2031
Durham 688-7331
PURPOSE: To consider a adopting a policy regarding payment in lieu of taxes as it
respects County owned property which is leased for private purposes not related to
County programs or services.
BACKGROUND: Pursuant to the Board's request, the attached policy is presented for
Board consideration.
RECOMMENDATION: The Manager recommends that the Board approve the policy
as written.
POLICY FOR INSERTION INTO THE POLICY MANUAL
MEETING DATE: May 29, 1997 NUMBER:
EFFECTIVE DATE: May 29, 1997 REVISIONS:
POLICY:
PAYMENTS IN LIEU OF TAXES - COUNTY OWNED PROPERTY
County owned real property (land and buildings) is exempt from ad
valorem property taxes as provided in Article V, Section 2 (3 ) of
the North Carolina Constitution and North Carolina General
Statutes § 105-278 .1 . From time to time Orange County owned real
property is leased to persons using the property for private
purposes not related to County programs or services . Typically
these tenants are using the property as part of the for profit
business activities of the tenant . This policy confirms and
ratifies the previous unwritten policy of Orange County to charge
such tenants payments in lieu of taxes in amounts equivalent to
the amount of property tax that would otherwise be lawfully
assessed against the leased premises were it taxable by the
County and by any municipality in which the leased premises is
located. Requiring these tenants to make payments in lieu of
taxes serves two important purposes . One, it eliminates the
competitive advantage accruing to a tenant of County owned real
property that could result from a rental agreement not requiring
tenant contribution of property taxes . Two, it provides the
County and any municipality wherein the leased premises is
located with money equivalent to taxes as a contribution to the
cost of public services provided by the County and any
municipality wherein the premises is located which public
services benefit the tenant of County owned space in the same way
that they benefit a tenant of privately owned leased space.
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