HomeMy WebLinkAboutAgenda - 06-03-2008-4yORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 3, 2008
Action Agen a
Item No. .~
SUBJECT: Scheduling of Public Comments During the June 24, 2008 Regular Meeting on
a Potential One-Quarter Cent Sales Tax Increase Referendum
DEPARTMENT: County Manager PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
None
INFORMATION CONTACT:
Barry Jacobs, Chair
Laura Blackmon, 245-2300
An item similar to this was delayed
from the Board's May 20, 2008
meeting due to time constraints.
PURPOSE: To schedule an opportunity for the Board to receive public comments at the June
24, 2008 Regular Board Meeting on a potential referendum on aone-quarter cent additional
sales tax in Orange County.
BACKGROUND: As part of a comprehensive and complicated "swap" of county and state
revenue sources approved by the North Carolina General Assembly during its 2007 Session,
the legislature authorized county boards of commissioners to enact one of two new local
revenue sources, subject to voter approval in each county considering implementation of the
new revenue sources. Counties may conduct a referendum on aone-quarter cent additional
sales tax, a 4% land transfer tax, or both. County Boards of Commissioners can implement only
one of the two taxes if voters approve both.
This item provides the opportunity for the Orange County Commissioners to schedule to receive
public comments at the June 24, 2008 Regular Board Meeting on a potential referendum to
increase the sales tax by one-quarter cent in Orange County.
The specific ballot language that would appear for aone-quarter cent additional sales tax is
specified in the State statute, as follows:
[ ]FOR [ ]AGAINST
Local sales and use tax at the rate of one-quarter percent (0.25%) in addition to all other State
and local sales and use taxes.
FINANCIAL IMPACT: There is no financial impact directly associated with the Board
scheduling to receive public comments at the June 24, 2008 Regular Board Meeting on a
potential referendum on aone-quarter cent additional sales tax in Orange County. Any
subsequent decisions by the Board may have financial impacts which can be evaluated by staff.
Preliminary estimates provided by the North Carolina Association of County Commissioners in
August 2007 suggest that based on historical patterns, Orange County could expect additional
annual sales tax revenue of roughly $3.0 million, or the equivalent of approximately 1.4 cents on
the anticipated 2008-09 fiscal year tax rate, with the voter-approved and Board-implemented
one-quarter cent additional sales tax. However, given the economic downturn currently being
experienced across the nation and evidenced in the County's recent lower than anticipated
sales tax collections, it is likely that $3 million is optimistic and not reflective of today's current
conditions.
RECOIVIMEfdDAT1ON(S): The Manager recommends that the Board schedule an opportunity
to receive public comments at the June 24, 2008 Regular Board Meeting on a potential
referendum on cone-quarter cent additional sales tax in Orange County.