HomeMy WebLinkAboutAgenda - 10-21-2014 - 6iORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 21, 2014
Action Agenda
Item No. 6 -i
SUBJECT: Interlocal Agreement for the Reimbursement of Expenditures
DEPARTMENT: County Attorney PUBLIC HEARING: (Y /N) No
ATTACHMENT(S):
INFORMATION CONTACT:
John Roberts, 919 - 245 -2318
PURPOSE: To authorize the Chair to execute an agreement with the Towns of Carrboro,
Hillsborough, Chapel Hill and various Online Travel Companies ( "OTCs ") for the collection and
remittance of certain occupancy taxes.
BACKGROUND: Approximately seven years ago various counties in North Carolina initiated
litigation over the failure of some OTCs to collect occupancy taxes when those OTCs reserved
rooms on behalf of travellers. In 2013 the legislature passed legislation (SL 2010 -31 Section
31.6) intended to require OTCs to collect and remit occupancy taxes. The OTCs alleged the
legislation was unconstitutional and ultimately prevailed on the litigation in the North Carolina
Appellate Courts. Even though they prevailed in the litigation the OTCs agreed to collect the
occupancy taxes going forward. Orange County was not a party to the litigation, but the OTCs
are requesting Orange County and the Towns agree to forgo litigation over any occupancy taxes
the OTCs allegedly failed to collect in the past and to allow them to collect occupancy taxes and
remit them going forward beginning January 1, 2015.
The Agreement is not attached and the OTCs are not named because the Agreement is
confidential tax information pursuant to North Carolina General Statute 105- 259(a)(2). The
Agreement will be provided separately to the Board of County Commissioners.
FINANCIAL IMPACT: There is no cost associated with approval of the Interlocal Agreement.
Revenues will increase due to these occupancy taxes being collected and remitted for the first
time. However, at this time there is no estimate how much of an increase there will be.
RECOMMENDATION(S): The Attorney recommends that the Board authorize the Chair to
execute the Interlocal Agreement.