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HomeMy WebLinkAboutAgenda - 10-10-2000-10b ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 10, 2000 Action Age! da Item No. (~ SUBJECT: Additional NCACC Le illative Goals Information DEPARTMENT; County Manager PUBLIC HEARING: (YlN) No ATTACHMENT(S): INFORMATION CONTACT: John Link, ext 2300 10/6/00 Memorandum from Jahn Smith John Smith, ext. ext 2101 10/9/00 Memorandum from Karen Lincoln Karen Lincoln, ext. 2594 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE; To receive additional information on possible legislative goals to forward to the - North Carolina Association of County Commissioners (NCACC) for the 2000 General Assembly Session. BACKGROUND; At the BOCC's September 19, 2000 regular meeting, the Board reviewed and discussed a total of 21 legislative goals to forward to the NCACC for the 2000 General Assembly Session. Following discussion, the Board approved a resolution forwarding 17 of those goals to the NCACC and requested additional information from staff on the remaining four. Those four were: • The creation of a standardized format and language that will provide for more-uniform interpretation and application of the Use Value System as it relates to farming and real property taxes. • The relaxation of the eligibility standards as they relate to acreage size for land to qualify under the Use Value System with increased emphasis on income produced, so that small, bona fide income -producing agricultural enterprises that do not require much land can also qualify for the Use Value program. • An additional program allowing for the erection of logo signs for retail operations (to complement current authorizations for food, fuel, and lodging logo signs) along interstates where prohibitions against additional billboard outdoor advertising signs exist. • An income tax credit for taxpayers investing in agribusiness enterprises that add value to raw, North Carolina-grown agricultural commodities, with special attention/benefits being given to those investment activities supporting smaller agricultural operations. 2 Memoranda from County Tax Assessor John Smith and from Karen Lincoln with the Planning Department provide additional information on the first three possible goal items. Regarding the last item, staff proposes that the County specifically request that the NCACC work with the North Carolina Department of Revenue, agricultural interests, and other concerned entities to investigate and evaluate this proposal. ,These parties can more fully consider the ramifications of pursuing this proposal and provide feedback to both Orange County and on a statewide basis on the benefits, costs, and implications of this initiative. FINANCIAL IMPACT: None associated with this information. However, any ultimate action by the General Assembly to address the items noted could have financial implications for the county. RECOMMENDATION(S): The Manager recommends that the Board receive the information. and provide direction as necessary to staff. Orange County Tax Assessor's Office PO Box 8181 H111sborough, NC 27278 .. Qc _ _ ,. tinge -County Tax:~ffice _ MEMORANDUM TO: Boazd of County Commissioners FROM: John Smith, Assessor Teresa Moore, Use Program Administrator SUBJECT: Proposed Legislation for NCACC consideration DATE: ,October 6, 2000 _ ~e'~e.been asked to supply information related to two of the proposals being _ :considered. by the commissioners for presentation to the NCACC. The°fir~t of these proposals recommends the creation of a standardized format and :language that will provide for more uniform interpretation and application of the _ Use Value System as it relates to farming and real property taxes. The Use Value - - Program is outlined in the North Carolina General Statutes GS 105-277.2 through GS-1`05-277.7 plus GS lOS-282.1, 289, 296, GS 160A-37 and GS 105-160A-49 as well as other related statutes: Undoubtedly, a law degree is desirable when attempting to understand or administer the program. Even the Use Value course booklet that the NC Department of Revenue uses in the Use Value sem,narc is over an inch thick with approximately 300 pages. The Use Value Program was created in the 1970's and has undergone many changes since that time. Many who initially were restricted from participation have since been allowed participation as the regulations have been relaxed and expanded over the yeazs. Most likely, over time, the statutes have been written, rewritten, and amended time and time again. A complete rewrite of all the statutes and the related statutes would be a huge undertaking and could have positive results or less than positive results. I remember last year how diligently our county attorney worked in proposing a rewrite of a small portion of the Use Value statutes. In tax law, as well as in most instances of law, changes in one-azea impacts other azeas as well. ~: d ou p _ _ Shou/ y have questions lease call John Smith ; 732-8:981 ext..2909. - October 6, 2000 Poge 2 Another consideration relates to interpretation and application. Counties seem to have their own interpretations and therefore their own applications practically for all instances of law and not just the Use Program. To slightly exaggerate, across the state there may well be as many as 100 different ways of interpreting and applying many of the North Carolina Statutes. Standazdized format and language may or may not ultimately have the desired effect. The relaxation of the eligibility standards as they relate to acreage for land to qualify under the Use Value System is another proposal with pros and cons. Under the present guidelines anyone with a minimum of five acres can qualify under horticulture (this would also include herb farms). However, abona-fide horticulture operation with X4.90 acres would not qualify. On the positive side, lowering the acreage. requirement let's say to a one-acre minimum could provide significant tax savings to the many who would likely qualify. On the negative side such a change could potentially open the door to abuses of the system and potentially hurt, not help mast farmers. With afive-acre minimum there is a cleaz cut off, which excludes most property owners, and therefore, there is no chance of eroding the tax base and forcing tax rates up. Reducing the size requirements to a minimum of one-acre though creates a situation where practically "everyone" qualifies. The agriculture and horticulture provisions of the Use Value Program aze intended to protect the individuals'.whose livelihood is farmi~. With afive-acre minimum, under which intensive horticulture operations can qualify, these. individuals aze protected. When the acreage requirement is dropped, there is the very good potential that the hobbyists such as those with one or two cows, for instance, or one horse, start qualifying en masse. Even with the income requirements many that do not now qualify would qualify due to the miniscule income requirements of only $1,500 per yeaz. An acreage cut off of 5 acres for horticulture and 10 acres for agriculture, as they exist now, minimizes abuses of the program and protects the farmers' livelihoods from escalating taxes due to higher tax rates. 4 5 ORANGE COUNTY PLANNING ~ INSPECTIONS DEPARTMENT Craig N. Benedict, AICP, Director L"gat! °r e' Comprehensive Planning ~~` + ~ ~ 306E Revere Road (919) 245-2589 u ~ P O Box 8181 (919) 644-3002 (FAx) Hillsborough www,co.orange.nc.us '"°~ry ~.~°~~'' North Carolina, 27278 MEMORANDUM Date: October 9, 2000 To: John Link, County Manager CC: Craig Benedict, Planning Director Gene Bell, Comprehensive Planning Supervisor From: Karen Lincoln, Transportation Planner Subject: Logo Signs (Specific Information Signing Program) I am forwarding the following in response to the Orange County Board of County Commissioners' request for information concerning the North Carolina Department of Transportation (NCDOT) Specific Information Signing Program. The Specific Information Signing Program provides eligible businesses with the opportunity to be listed on ofFicial signs within the right-of way of fully controlled access highways. Specifics of the program, which is managed by the Traffic Engineering Branch of NCDOT Division of Highways, are given in North Carolina Administrative Code, TitIe19A Chapter 02E.0216 through 02E.0223. The program offers three types of signs for highway service businesses: mainline, ramp and trailblazer signs. Mainline panels are erected at the approach to interchanges .for "CAMPING", "LODGING", "FOOD" AND "GAS". No more than one mainline panel may be erected for each type of service, and a maximum of six (6) specific business (logo) signs may be installed on each type of mainline panel subject to spacing limitations. A combination type panel is used when space does not permit all types of signs and only two of each type of service is available at the location. If panels cannot be erected because of spacing limitations, a supplemental service sign, which lists the additional services available; may be erected below existing sign(s). • Ramp panels (one for each type of motorist service) may be erected on each exit ramp subject to spacing limitations. Where supplemental service signing is on the mainline due to space limitations, a business may purchase logo panels on ramps. Memorandum to John Link, County Manager October 9, 2000 . Page 2 Trailblazer signs direct motorists to the business and may be erected if the Department. of Transportation deems further direction is necessary to locate the business once the motorist has exited the interstate: li ibili Re uirements Basic eligibility requirements for the program are: • The business must provide gas, food, lodging or camping facilities. • The business is located within three miles (or a maximum of six miles under certain situations) from an interchange. • The business must operate year-round (camping facilities may be operated on a seasonal basis) seven days a week (at least six days for some food establishments). Other eligibility requirements are specific to the type service. To be eligible for the program, a food establishment must operate at least 12 continuous hours per day to serve three meals a day (six or seven days per week), or must operate at least eight continuous hours to serve at least two meals a day (seven days per week); .must have indoor seating capacity .for 20 persons; and must have public restroom facilities. To be eligible for the program, a "gas" establishment must offer vehicle services for fuel, motor oil, tine repair and water; have restroom facilities and drinking water suitable for public use; have an on-premise attendant to collect monies, make change and make or arrange far repairs; and operate at least 16 continuous hours per day. Lodging facilities must have sleeping accommodations consisting of a minimum of 10 units, each including a bathroom and a sleeping room (Bed and Breakfast establishments may have less than 10 units) and must have off street parking for each lodging room for rent. Camping facilities must have at least 10 campsites with accommodations for all types of camping vehicles and other parking accommodations. Fees Fees for participation in the program are as follows. • Mainline and Ramp Construction Payback Fees: one-year contract for $225 per each sign;10-year contract for $2,250 per each sign; or a lifetime contract fee of the design and complete installation cost for all required panels. 6 • Trailblazer sign fee: one-time charge of $250.00 per each trailblazer sign. Memorandum to John Link, County Manager October 9, .2000 Page 3 • Maintenance fee: $75.00 per year for each sign. • Service Charge fee: $60.00 per each business sign for replacement of sign due to request or damage (business provides the new sign). • Supplemental Service Signs: not subject to fees (except if included in lifetime contract). Other If the number of businesses for any particular type service at an interchange is greater than the maximum number of signs allowed, preference is given to businesses closest to the interchange (unless the business has .previously declined an opportunity offered by NCDOT to participate in the program). This policy includes any new businesses that may open closer to the interchange than other businesses already participating in the program (except for those that have lifetime contracts and are within three miles of the interchange). Contracts are renewed on a yearly basis. Businesses must submit a layout of the logo sign to NCDOT for approval before the sign is fabricated. NCDOT does not maintain waiting lists for the program. NCDOT is currently developing a Tourist Oriented Directional Signing (TODS) Program that will be available on all North Carolina highways. Division of Highways staff expect TODS to be fully implemented within one and a half to two years. Specifics of that pragram have not been fully elaborated and are not available at this time.