Agenda Package - 08-13-07 (Finance)

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Am. Memorandum To: County Managers From: Paul Meyer, Senior Associate General Counsel, and Rebecca Troutman, Intergovernmental Relations Director Date: August 8, 2007 Subject: Frequently Asked Questions regarding New County Authority Referenda The 2007 State Appropriations Act (H1473) provides counties with the authority to levy either a land transfer tax (up to .4%) or a local sales tax (.25%), following approval in a non-binding advisory referendum. H1473 creates 2 new articles under G.S. 105-Article 60 for the local option land transfer tax_ (H1473 SECTION 31.17.(a)), and Article 46 for the local option'/4 cent sales tax (H1473 SECTION 31.17.(b)). Question: Can a county hold an advisory referendum on the new revenue authority on the ballot of the municipal elections to be held this fall? Answer: Yes, as long as the county is a "November" county in the upcoming municipal elections, and the county notifies the State Board of Elections of its intent to include the advisory referendum on the ballot no later than September 4, 2007 (according to Director of the State Board of Elections). If the county is an "October" county (approximately 20 counties), it is too late to get the advisory referendum on the municipal election ballot. Please confer with the State Board of Elections and your local board of elections to determine whether you are an "October" or "November" county. Question: What are the steps a county needs to consider when scheduling a referendum? Answer: Any county that is subject to Section 5 of the Voting Rights Act of 1965 will need to submit its request for pre-clearance no later than August 31, 2007. The State of North Carolina has already submitted its request for pre-clearance of the authorizing legislation to the U.S. Attorney General. All counties must contact their local board of elections and the State Board of Elections in order to have the advisory referendum included on the ballot. See Question #I for deadlines. If a county is unable to get the advisory referendum on the ballot, it may call for and hold a special election. The special election may not be held within the period of time beginning 30 days before and ending 30 days after the date of any other primary, election, special election or referendum. Question: Can the ballot include advisory referendums for both the land transfer tax and the'/4 cent sales tax? Answer: Yes - both are authorized under state law. If both referenda pass, then the Board of Commissioners would have to choose which one to authorize, if they so desired. They cannot enact both.