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HomeMy WebLinkAboutAgenda - 11-03-1997 - 9c ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. ACTION AGENDA ITEM ABSTRACT Meeting Date: November 3, 1997 SUBJECT: Triangle Transit Authority Transit Plan Update and Resolution Approving the Levy of a Rental Vehicle Tax DEPARTMENT: County Manager PUBLIC HEARING: (Y/N) BUDGET AMENDMENT: (Y/N) ATTACHMENT(S): (1) Resolution by TTA Approving Tax and INFORMATION CONTACT: letter from Thomas F. Darden John M. Link, Jr. (2) Transcript of Public Hearing TELEPHONE NUMBERS: --ext. 2300 (3) Resolution for Approving Tax by Orange, Hillsborough 732-8181 Durham and Wake Counties and Regional Chapel Hill 968-4501 Public Transportation Authority Durham 688-7331 Mebane 227-2031 PURPOSE: To receive an update on the Triangle Transit Authority Transit Plan and to consider the adoption of a resolution approving the levy of a rental vehicle tax of five percent by the Authority. BACKGROUND: In August, 1997,the North Carolina General Assembly adopted and the Governor signed House Bill 1231,An Act to Authorize Supplemental Sources of Revenue for Local Government Transit Financing. For the Triangle region, this legislation pen-nits up to a five percent tax on the short term rental of private passenger vehicles and motorcycles. In combination with the existing vehicle registration fee,passenger fares and investment income, the rental vehicle tax is sufficient to fund the local/regional share necessary to implement Phase I of the Regional Transit Plan, including both the regional rail system and expanded regional bus service. The Triangle Transit Authority Board of Trustees, by the attached resolution passed on September 24, 1997,requests that the Orange County Board of County Commissioners consider adopting a resolution approving a rental vehicle tax levy of five percent, effective the later of January 1, 1998 or the first day of the second month after the Board of Trustees adopts the Rental Vehicle Tax Levy Resolution. (See Attachment 1.) The Triangle Transit Authority conducted a public hearing on the vehicle rental tax on October 22, 1997. (Please see Attachment 2.) RECOMMENDATION(S): The Manager recommends that the Board of Commissioners adopt the resolution as presented. (Attachment 3) Attachment 1 • 2 r Resolution Approving the Levy of a Rental Vehicle Tax of Five Percent by the Research Triangle Regional Public Transportation Authority WHEREAS; in 1989,Durham, Orange, and Wake Counties,the cities of Raleigh and Durham and the Towns of Cary and Chapel Hill jointly formed the Research Triangle Regional Public Transportation Authority; and, WHEREAS; in 1990,during a joint meeting,the Capital Area and Durham-Chapel Hill-Carrboro Transportation Advisory Committees adopted the Land Use and Public Transportation Action Agenda which directed that: "The Triangle Transit Authority, in coordination with local governments and appropriate regional agencies, should evaluate possible corridors and fixed guideway technologies for potential implementation;"and, WHEREAS; in 1992,the Triangle Transit Authority began the Triangle Fixed Guideway Study and jointly developed the scope for the Study in coordination with the Federal Transit Administration, the state, and the region's units of local government which are members of the Capital Area and Durham- Chapel Hill-Carrboro Metropolitan Planning Organizations(MPOs); and, WHEREAS;the Triangle Fixed Guideway Study examined the long term land use and transportation problems, identified and evaluated alternatives, and recommended implementation of Phase I Regional Rail service from Durham to North Raleigh as part of Recommendations for a Regional Transit Plan; and, WHEREAS; on May 16, 1995,the Orange County Board of Commissioners adopted a Resolution Supporting the Preliminary Recommendations for a Regional Transit Plan, including a request that the North Carolina General Assembly establish a permanent funding source permitting the long term implementation of the Regional Transit Plan; and, WHEREAS; on February 22, 1995,Recommendations for a Regional Transit Plan were adopted by the Triangle Transit Authority Board of Trustees after extensive and ongoing public involvement; and, WHEREAS; on September 25, 1996,the Durham-Chapel Hill-Carrboro Metropolitan Planning Organization adopted the Interim Comprehensive Transportation Plan which contains Phase I of the Regional Rail Project as part of the fiscally constrained plan; and, WHEREAS; on February 20, 1997,the Capital Area Metropolitan Planning Organization Transportation Advisory Committee adopted the Long Range Transportation Plan- Transit Element which contains Phase I of the Regional Rail Project as part of the fiscally constrained plan; and, WHEREAS; the Phase I Regional Rail System will require financing from the Federal, State and Regional Governments; and, WHEREAS the North Carolina General Assembly enacted House Bill 1231 "An Act to Authorize Supplemental Sources of Revenue for Local Government Transit Financing'which was signed by Governor James B. Hunt,Jr. on August 21, 1997; and, 1 3 WHEREAS; House Bill 1231 amended Subchapter IX of Chapter 105 of the General Statutes by adding a new Article 50 which permits Regional Public Transportation Authorities to levy up to a five percent tax on rental vehicle gross receipts; and, WHEREAS; The Board of Trustees of an Authority may not levy a tax under this section or increase the tax rate of a tax levied under this section until: 1) the Board of Trustees has held a public hearing on the tax or the increase in the tax rate after giving at least 10 days' notice of the hearing, and, 2) if the Authority has a special tax board,the special tax board has adopted a resolution approving the levy of the tax or the increase in the tax rate, and 3) the board of commissioners of each county included in the territorial jurisdiction of the Authority has adopted a resolution approving the levy of the tax or the increase in the tax rate. NOW,THEREFORE,BE IT RESOLVED,by the Orange County Board of Commissioners, that the Orange County Board of Commissioners approves the levy by the Research Triangle Regional Public Transportation Authority of a rental vehicle tax levy pursuant to Article 50 of Subchapter IX of Chapter 105 of the General Statutes equal to five percent of the gross receipts taxable thereunder derived by retailers, effective the later of January 1, 1998 or the first day of the second month after the Authority's Board of Trustees adopts the Rental Vehicle Tax Levy Resolution. 2 4 IrrA Triangle Transit Authority September 26, 1997 The Honorable William Crowther,Chairman Orange County Board of County Commissioners Orange County Government Services Center 200 S. Cameron Hillsborough,NC 27602 RE: Approval of Rental Vehicle Tag Levy Dear Commissioner Crowther: Since 1989,with County and municipal support,the Triangle Transit Authority has developed a long range Regional Transit Plan. The plan includes expanding regional bus services and developing a regional rail system connecting Durham, Orange and Wake Counties. The plan has been endorsed by each unit of government in Orange County,and the Regional Transit Plan has been incorporated into the long range transportation plans and the Transportation Improvement Programs(TIPS)for the Capital Area Metropolitan Planning Organization and the Durham Chapel Hill/ Carrboro Metropolitan Planning Organization. The Regional Transit Plan, like all of our major transportation projects,will be financed by a partnership of State, Federal and Local/Regional funds. Our entire congressional delegation, including Senators Helms and Faircloth and Representatives Price, Etheridge and Watt,have worked to obtain federal commitment for the project. Governor Hunt and Secretary Garrett,through the work of the Governor's Transit 2001 Commission,have provided for the commitment of the State funds. Now,we must secure the local and regional funds. In August 1997,the North Carolina General Assembly adopted and the Governor signed House Bill 1231,An Act to Authorize Supplemental Sources of Revenue for Local Government Transit Financing. For the Triangle region,this legislation permits up to a five percent tax on the short term rental of private passenger vehicles and motorcycles. In combination with the existing vehicle registration fee,passenger fares and investment income,the rental vehicle tax is sufficient to fund the local/regional share necessary to implement Phase I of the Regional Transit Plan, including both the regional rail system and expanded regional bus service. The Triangle Transit Authority Board of Trustees,by the attached resolution passed on September 24, 1997, requests that the Orange County Board of County Commissioners consider adopting a resolution approving a rental vehicle tax levy of five percent,effective the later of January 1, 1998 or the first day of the second month after the Board of Trustees adopts the Rental Vehicle Tax Levy Resolution. We appreciate your continued support for TTA's efforts to develop public transit service for the Triangle Region. If you have any questions or need further information,please contact Jim Ritchey at 919-406-1710 ext.24. Sincerely, Thomas F. Darden, Chair Board of Trustees Suite 206, 50 Park Drive A P.O.Box 13787 A Research Triangle Park A North Carolina 27709 Regional Bus:(919)549-9999 AL Office:(919)406-1710 A Fax:(919)990-9127 Attachment 2 S Triangle Transit Authority Multi-Page TM. Transcript of Public Hearin Vehicle Rental Tax Public Hearing 10-22-9" TRIANGLE TRANSIT AUTHORITY VEHICLE RENTAL TAX PUBLIC HEARING TRANSCRIPT OF PROCEEDINGS Held: October 22, 1997, 5:30 p.m. At: Triangle Transit Authority Room 202, 50 Park Drive Research Triangle Park, NC Cathy Jones, Court Reporter CATHY JONES & ASSOCIATES 212 SOUTHERLAND STREET DURHAM, NORTH CAROLINA 27703 (919) 596-7700 CATHY JONES & ASSOCIATES (919) 596-7700 6 Triangle Transit Authority Multi-Pager" Transcript of Public Hearing ; Vehicle Rental Tax Public Hearing 10-22-9 Page 2 - Page ATTENDEES 1 (Whereupon, the following proceedings commenced Triangle Transit Authority Board Members 2 at 5:44 p.m_) Ellen W. ReCkhow, TTA Chair 3 MS. RECKHOW: I'm going to open the public Rachel A. Willis,TTA Vice-Chair 4 hearing on the rental vehicle tax implementation and William V. Bell, TTA Treasurer 5 ask our general manager, Jim Ritchey, to introduce Thomas J. Harrelson, TTA Secretary 6 the item. Christie Cameron 7 MR. RITCHEY: We have a -- this summer the Robert Hinshaw 8 General Assembly passed House Bill 1231 and the Sandy Ogburn 9 Governor signed the legislation. The Act permits Triangle Transit Authority Staff 10 regional public transportation authorities to levy Jim Ferrell, Manager of Regional Bus and Ridesharinq 11 up to a five percent tax on the use of private Kelly Goforth, Senior Policy Analyst 12 vehicles or the rental of private vehicles. Joe Hughey, Senior Transportation Planner 13 Now, in order to implement that tax, we Terri McGoughey, Board Attorney 14 have to go through four steps. The first step is Cathy Patton, Assistant General Manager 15 that we have each of the units of government to -- for Finance 16 or each of the counties to pass resolutions Jim Ritchey, General Manager 17 supporting the implementation of the tax or Patrice Robbins, Administrative Assistant 18 approving the implementation of the tax. The second John Roberson, Senior Transportation Engineer 19 step is that we have to have a public hearing Juanita Shearer-Swink, Senior Transportation 20 concerning the implementation of the -- and this is Planner 21 not sequential. These things can occur, but they John Tallmadge, Transportation Planner 22 all have to occur before we approve. But the second Members of the Public 23 is we have to have a public hearing. Jim Aaertling, Enterprise Rent-A-Car 24 The third step is the special tax board 25 has to approve the implementation of the tax. And Page 3 Page 1 TABLE OF CONTENTS 1 the fourth step is the Triangle Transit Authority 2 Opening Remarks by Ms. Reckhow Page 4 2 Board of Trustees has to approve implementation of 3 Remarks by Mr. Ritchey Page 4 3 the tax. 4 Response by Mr. Haertling Page 6 4 Now, we've set forth a schedule which you 5 Close of Meeting by Ms. Reckhow Page 8 5 approved at your last meeting to ask the counties to 6 6 consider resolutions approving this tax. The 7 7 counties are now scheduled with Orange County on E 8 November the 3rd, Wake County on November the 3rd 9 9 and Durham County on November the 10th. Durham 10 10 County has also decided to hold its own public 11 11 hearing and will do that on the 27th of October. 12 12 With that step,the next step will be the 13 13 actual scheduling for the special tax board. And I 14 14 received yesterday the final appointments for this 15 15 special tax board from Wake County with Les Merritt 16 16 and Vernon Malone appointed from Wake County to the 17. 17 special tax board. So we have the special tax board 18 18 scheduled in early November. 19 19 We are now required to consider public 20 20 comment for the implementation of this tax so that 21 21 this board -- and we will also communicate these 22 22 comments to each of the three county commissions. 23 23 We advertised the public hearing in the newspapers 24 24 of general circulation, both the News and Observer 25 25 and the Herald Sun. And we also are accepting CATHY JONES & ASSOCIATES Page 2 - Page (919) 596-7700 7 Transcript of Public Hearing Multi-PageT"' Triangle Transit Authority 10-22-97 Vehicle Rental Tax Public Hearing Page 6 Page 8 1 written comments, if there are any, about this tax 1 keep it below the five percent to keep us from 2 implementation. We have one speaker who has signed 2 having to charge the 13 percent tax to our renters. 3 up for the public hearing. Jim$aertling? 3 That's all I have to say. Thank you. 4 MR.HAERTLING: Haertling. 4 MS. RECKHOw: Thank you. Okay. I guess 5 MR. RITCHEY: Haertling --with Enterprise 5 with that-- are there any other comments? Does 6 Rent-A-Car. Jim, thank you very much for being with 6 anyone else want to speak on this public hearing? 7 us. Jim was also here at a briefing that we had for 7 Okay. I will then close the public hearing and 8 the rental car companies on the 15th of October. 8 thank you for coming. 9 And Jim, welcome and thank you very much. 9 (PROCEEDINGS CONCLUDED AT 5:50 P.M.) 10 And you're welcome to come to the table and talk 10 11 with the board members if you'd like. 11 12 MR.HAERTLING: well, it shouldn't take 12 13 too terribly long. Of course,you've probably 13 14 guessed that Enterprise is opposed to any type of 14 15 rental tax or a tax,just targeting out one segment 15 16 of industry -- in this case, car rental firms. 16 17 You've given the opportunity to approve up to 17 18 another five percent of tax onto our customers. Our 18 19 customers are already taxed at eight percent highway 19 20 use tax rate,which is two percent more than the 20 21 general sales tax rate. So this will place an 21 22 additional burden onto our customers of up to 13 22 23 percent. 23 24 And people flying to the airport have to 24 25 pay another 10 percent to RDU,which comes up to 23 25 Page 7 Page 9 1 percent total tax surcharge types of charges that 1 STATE OF NORTH CAROLINA 2 our customers will need to pay to finance other 2 COUNTY OF DURHAM 3 operations that don't complement or don't truly 3 CERTIFICATE 4 benefit the rental car industry. 4 5 A lot of people think that this tax on 5 I, Cathy Jones, Shorthand Reporter and 6 rental cars is taxing folks from out of town because 6 Notary Public in and for the State of North 7 everybody flies into the airport and rents a car 7 Carolina, do hereby certify I reported in machine 8 there. That's not the case. We've got over 7,000 8 shorthand the proceedings had on October 22, 1997 to 9 renters who rent cars from us every month who live 9 the best of my hearing and ability to understand, 10 in the Triangle. I don't know if a lot of you 10 that the foregoing pages, numbered from 1 to 9, 11 realize that when you do have the opportunity to 11 inclusive,were typed under my personal supervision 12 vote on this additional five percent tax. 12 and constitute a true record of said proceedings. 13 We feel it's unfair to single out one 13 1 further certify that I am neither 14 specific industry. We think that also you might not 14 attorney or counsel for, nor related to or employed 15 be aware that there are a lot of people locally who 15 by, any attorney or counsel employed by the parties 16 rent cars. Seven thousand people a month-- that's 16 hereto or financially interested in the action. 17 quite a handful. And also we're already expected to 17 IN WITNESS WHEREOF,I have hereto set my 18 meet that eight percent tax burden from the General 18 hand and affixed my official seal, this the 23rd day 19 Assembly as well as six percent for any other goods 19 of October, 1997. 20 and purchases. 20 21 With that in mind, we ask you -- first of 21 CATHY JONES,NOTARY PUBLIC 22 all, if you think a zero percent would be a good 22 My Commission Expires: 1-18-94 23 percentage, we'd be wholeheartedly behind that. But 23 24 if you feel you do need to impose some type of a tax 24 25 on the rental car industry, that you could possibly 25 Page 6 - Page 9 CATHY JONES & ASSOCIATES (919) 596-7700 Attachment 3 8 Resolution Requesting the Durham County, Orange County, and Wake County Boards of County Commissioners, and the Research Triangle Regional Public Transportation Authority Special Tax Board to Adopt a Resolution Approving the Levy of a Rental Vehicle Tax WHEREAS; in 1989, Durham,Orange,and Wake Counties,the Cites of Raleigh and Durham and the Towns of Cary and Chapel Hill jointly formed the Research Triangle Regional Public Transportation Authority, and, WHEREAS; in 1990, during a joint meeting,the Capital Area and Durham-Chapel Hill-Carrboro Transportation Advisory Committees adopted the Land Use and Public Transportation Action Agenda which directed that: "The Triangle Transit Authority, in coordination with local governments and appropriate regional agencies, should evaluate possible corridors and fixed guideway technologies for potential implementation;"and, WHEREAS; in 1992,the Triangle Transit Authority began the Triangle Fixed Guideway Study and jointly developed the scope for the Study in coordination with the Federal Transit Administration,the state, and the region's units of local government which are members of the Capital Area and Durham- Chapel Hill-Carrboro Metropolitan Planning Organizations(MPOs); and, WHEREAS;the Triangle Fixed Guideway Study examined the long term land use and transportation problems, identified and evaluated alternatives, and recommended implementation of Phase I Regional Rail service from Durham to North Raleigh as part of Recommendations for a Regional Transit Plan; and, WHEREAS; on February 22, 1995,Recommendations for a Regional Transit Plan were adopted by the Triangle Transit Authority Board of Trustees after extensive and ongoing public involvement; and, WHEREAS; Durham, Orange,and Wake Counties,the Cites of Raleigh and Durham and the Towns of Cary and Chapel Hill each received and supported Triangle Transit Authority's Recommendations for a Regional Transit Plan, and, WHEREAS; on September 25, 1996,the Durham-Chapel Hill-Carrboro Metropolitan Planning Organization adopted the Interim Comprehensive Transportation Plan which contains Phase I of the Regional Rail Project as part of the fiscally constrained plan; and, WHEREAS; on February 20, 1997,the Capital Area Metropolitan Planning Organization Transportation Advisory Committee adopted the Long Range Transportation Plan- Transit Element which contains Phase I of the Regional Rail Project as part of the fiscally constrained plan; and, WHEREAS;the Phase I Regional Rail System will require financing from the Federal, State and Regional Governments, and, WHEREAS;the North Carolina General Assembly enacted House Bill 1231 "An Act to Authorize Supplemental Sources of Revenue for Local Government Transit Financing which was signed by Governor James B. Hunt,Jr. on August 21, 1997,and, 18 9 WHEREAS; House Bill 1231 amended Subchapter IX of Chapter 105 of the General Statutes by adding a new Article 51 which permits Regional Public Transportation Authorities to levy up to a five percent tax on rental vehicle gross receipts,and, WHEREAS; The Board of Trustees of an Authority may not levy a tax under this section or increase the tax rate of a tax levied under this section until: 1) the Board of Trustees has held a public hearing on the tax or the increase in the tax rate after giving at least 10 days' notice of the hearing,and, 2) if the Authority has a special tax board,the special tax board has adopted a resolution approving the levy of the tax or the increase in the tax rate, and 3) the board of commissioners of each county included in the territorial jurisdiction of the Authority has adopted a resolution approving the levy of the tax or the increase in the tax rate. NOW, THEREFORE, BE IT RESOLVED, by the Research Triangle Regional Public Transportation Authority Board of Trustees,that: 1. The Board of Trustees sets the time and place for the public hearing required prior to considering the rental vehicle tax as October 22, 1997,at 5:30 PM,at 50 Park Drive Suite 206,Research Triangle Park,North Carolina,and the General Manager is directed to advertized the public hearing; and, 2. The Board of Trustees requests that the Research Triangle Regional Public Transportation Authority Special Tax Board consider the approval of a rental vehicle tax levy of five percent effective the later of January 1, 1998 or the first day of the second month after the Board of Trustees adopts the Rental Vehicle Tax Levy Resolution, and 3. The Board of Trustees requests that the Durham County,Orange County,and Wake County Boards of County Commissioners consider the approval of a rental vehicle tax levy of five percent effective the later of January 1, 1998 or the first day of the second month after the Board of Trustees adopts the Rental Vehicle Tax Levy Resolution. 19