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Home My WebLink AboutAgenda - 11-07-2024; 8-j - Resolution Authorizing Vehicle Registration Tax Increase 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 7, 2024 Action Agenda Item No. 8-j SUBJECT: Resolution Authorizing Vehicle Registration Tax Increase DEPARTMENT: Orange County Transportation Services (OCTS) ATTACHMENT(S): INFORMATION CONTACT: 1. October 1, 2024 GoTriangle Minutes Nishith Trivedi, Transportation Director, 2. Resolution 919-245-2007 PURPOSE: To approve a resolution authorizing the GoTriangle additional two dollars ($2.00) vehicle registration tax increase. BACKGROUND: At its March 6, 2014 meeting, the Orange County Board of Commissioners approved a resolution authorizing the Research Triangle Regional Public Transportation Authority — now GoTriangle — to levy the eight dollars ($8.00) vehicle registration tax on motor vehicles registered in Orange County. The North Carolina General Assembly approved House Bill 199 allowing for a two dollar ($2) increase in the vehicle registration tax, and it was signed into law July 2, 2024 (link). Go Triangle, as the regional transit tax district for Wake, Durham and Orange County, anticipates an additional $2.6 million in annual revenue. On October 1,2024, the GoTriangle Special Tax Board received a presentation from Go Triangle staff member Byron Smith on the process necessary to implement the new law (minutes provided at Attachment 1), and summarized below: Timeline: • October 23, 2024 — GoTriangle Board of Trustees holds public hearing • October 23/24, 2024 — Special Tax Board considers resolution approving the tax increase • October 24 through November 19, 2024 — County boards consider resolutions approving the tax increase • November 20, 2024 — GoTriangle Board of Trustees considers resolutions approving the tax increase GoTriangle's action requires that the original March 2014 resolution also be updated. Attachment 2 is the proposed updated resolution that County staff proposes the Board adopt the approving the GoTriangle vehicle registration tax increase. FINANCIAL IMPACT: Funds collected from this increase — $2.6 million — will go to GoTriangle. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 4: MULTI-MODAL TRANSPORTATION 2 OBJECTIVE 2. Increase community awareness of all modes of transportation including transit, bike and pedestrian, vehicle, and all other modes. OBJECTIVE 3. Support road projects that address congestion and reduce commute time using the County' s Complete Streets policy. OBJECTIVE 4. Coordinate transit investments with municipal and county land use planning to reduce vehicle miles travelled and to provide more equitable access to shopping, employment, medical centers, college campuses, etc. OBJECTIVE 5. Invest in implementing the County' s Safe Routes to Schools plan. OBJECTIVE 6. Update transportation related plans to provide more multi- modal options including rural Orange County. RECOMMENDATION(S): The Manager recommends Board approve and authorize the Chair to sign the resolution authorizing the GoTriangle additional two dollars ($2.00) vehicle registration tax increase. 3 SPECIAL TAX BOARD 4600 Emperor Boulevard Suite 100 Triangle MEETING MINUTES Durham, NC27703 Tuesday, October 1, 2024 2:00 p.m. Remote I Microsoft Teams Durham County Orange County Wake County *Nimasheena Burns *Jamezetta Bedford *Matt Calabria *Brenda Howerton *Jean Hamilton *Susan Evans *present The meeting was called to order at 2:02 p.m. A quorum was present. 1. Call to Order The meeting was called to order at 2:02 p.m. A quorum was present. 2. Discussion of Vehicle Registration Tax Increase Byron Smith informed the group that the General Assembly passed House Bill 199, which became effective on July 1, 2024, and will allow for a $2 increase to the vehicle registration tax. He added that the initial tax was $5, which had had one increase to $8. Analysts report the spending power is less than $2 now. The $2 increase could bring in an additional $2.6 million in annual revenue to GoTriangle. Smith said the initial request was for an increase in addition to having the tax indexed to inflation like other DMV fees. The Senate Transportation Committee pulled out the indexing language. Smith recognized State Senators Murdoch and Woodard who assisted in getting this passed in a bipartisan manner. The requirements to implement the tax increase are: • GoTriangle Board of Trustees holds a public hearing on the proposed increase after 10 days' notice. • Special Tax Board adopts a resolution approving the tax increase. • Boards of County Commissioners in Durham, Orange and Wake counties adopt a resolution approving the tax increase. • GoTriangle Board of Trustees adopts a resolution levying the tax increase. Once approved the resolutions are sent to the Department of Motor Vehicles and collection cannot begin until six months after notice. Commissioners stated their support for the increased tax and discussed the possibilities for getting this item on their respective boards' agenda as soon as possible in order to expedite collection of the additional tax. 4 GoTriangle SPECIAL TAX BOARD October 1, 2024 Potential timeline: • October 2 - GoTriangle Administration & Governance Committee schedules public hearing for October 23 Board of Trustees meeting • October 23 - GoTriangle Board of Trustees holds public hearing • October 23/24 - Special Tax Board considers resolution approving tax increase • October 24 - November 19 - county boards of commissioners consider resolutions approving tax increase • November 20- GoTriangle Board of Trustees considers resolution levying additional $2 vehicle registration tax 3. Adjournment Action: On motion by Commissioner Howerton and second by Commissioner Bedford the meeting was adjourned at 2:31 p.m. Prepared by: Michelle C. Dawson, CIVIC Clerk to the Board of Trustees Meeting Minutes Page 2 5 RES-2024-062 Attachment 2 ORANGE COUNTY BOARD OF COMMISSIONERS RESOLUTION AUTHORIZING THE RESEARCH TRIANGLE REGIONAL PUBLIC TRANSPORTATION AUTHORITY TO LEVY THE FULL TEN DOLLAR ($10.00) VEHICLE REGISTRATION TAX ON MOTOR VEHICLES REGISTERED IN ORANGE COUNTY WHEREAS, the Orange County Board of Commissioners has adopted the Orange County Bus and Rail Investment Plan; and WHEREAS, the Orange County Bus and Rail Investment Plan provides for the levy and disbursement of the full amount of the eight dollar ($8.00) motor vehicle registration tax authorized by North Carolina General Statute (NCGS) §105-561(a); and WHEREAS, pursuant to NCGS §105-561(a), the Research Triangle Regional Public Transportation Authority currently levies a motor vehicle registration tax of eight dollars ($8.00) on motor vehicles registered in Orange County and desires to levy the full amount; and WHEREAS, the Research Triangle Public Transportation Authority has created a special tax district consisting of Orange and Durham counties for the purpose of increasing the motor vehicle registration tax in those counties by two dollars ($2.00) as provided in NCGS §105- 561(d); and WHEREAS, the Research Triangle Public Transportation Authority Board of Trustees conducted a public hearing on the proposed increase in the tax rate in accordance with NCGS §105-561(b)(1); and WHEREAS, the Research Triangle Public Transportation Authority's Special Tax Board, pursuant to NCGS §105-561(b)(2), adopted a resolution approving the two dollar ($2.00) increase in the vehicle registration tax rate in the special tax district to the full amount of ten dollars ($10.00); NOW, THEREFORE, BE IT RESOLVED, that it being in the best interest of the residents of Orange County, the Orange County Board of Commissioners hereby authorizes and approves the levy of an additional two dollars ($2.00) of the vehicle registration tax as authorized by North Carolina General Statute §105-561. This the 7th day of November, 2024. Jamezetta Bedford, Chair Orange County Board of Commissioners Attest: Clerk to the Board of Commissioners