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n <br /> <br />NCACC <br />NCACC <br />P.O. Box 1488 <br />Raleigh, NC 27602-1488 <br />Tel: (919) 715-2893 <br />Fax: (919) 733-1065 <br />E-mail: <br />ncacc@ncacc.ora <br />Frequently Asked C <br />authority referenda <br />Page I of 3 <br />The 2007 State Appropriations Act (1-11473) provides counties with the authority to levy <br />either a land transfer tax (up to 0.4 percent) or a local sales tax (0.25 percent), <br />following approval in a non-binding advisory referendum. H1473 creates two new <br />articles under G.S. 105 - Article 60 for the local option land transfer tax (H1473 <br />SECTION 31.17.(a)), and Article 46 for the local option 1/, cent sales tax (H1473 <br />SECTION 31.17.(b)). <br />Question: What are the steps a county needs to consider when scheduling a <br />referendum? <br />Answer: Any county that is subject to Section 5 of the Voting Rights Act of 1965 will <br />need to submit its request for pre-clearance to the U.S. Attorney General. The State of <br />North Carolina has already submitted its request for pre-clearance of the authorizing <br />legislation to the U.S. Attorney General. <br />All counties must contact their local board of elections and the State Board of <br />Elections in order to have the advisory referendum included on the ballot. If a county is <br />unable to get the advisory referendum on the ballot, it may call for and hold a special <br />election. The special election may not be held within the period of time beginning 30 <br />days before and ending 30 days after the date of any other primary, election, special <br />election or referendum. <br />Question: Can the ballot include advisory referendums for both the land transfer tax <br />and the quarter-cent sales tax? <br />Answer: Yes - both are authorized under state law. If both referenda pass, then the <br />Board of Commissioners would have to choose which one to authorize, if they so <br />desire. They cannot enact both. <br />Question: Must the Board of County Commissioners levy a tax if the voters approve a <br />referendum for either the local option transfer tax, sales tax or both? <br />Answer: A Board of County Commissioners is not obligated to levy a tax if the <br />majority of those voting in a referendum on either the land transfer tax or sales tax <br />vote in support of a levy. <br />Question: Can a county stipulate uses of the monies on the ballot as a part of the <br />referendum? <br />Answer: A county may not stipulate the use of the money on the ballot. <br />Question: Is there a prescribed format for the question of the ballot? <br />Answer: Yes. Legislation specifies how the question must be presented on the ballot: <br />Land Transfer: <br />Ballot Question - The form of the question to be presented on a ballot for a <br />special election concerning the levy of the tax authorized by this Article shall <br />be:'[ j FOR [ j AGAINST <br />Real property transfer tax at the rate of up to [XI percent [X%) of value or <br />consideration.' <br />Note: The land transfer tax amount can be set at a rate up to .4%, in <br />increments of .1 <br />Sales Tax: <br />Ballot Question. - The form of the question to be presented on a ballot for a <br />special election concerning the levy of the tax authorized by this Article shall <br />