Title
Article 46 Local Option Sales Tax Informational Presentation
Abstract
Action Requested: Receive the informational presentation
Introduction & Background: The Article 46 Local Option Sales Tax is an optional sales tax that County governments have the ability to levy, dependent upon a successful referendum. This sales tax is an additional ¼ cent and may be used for any purpose that a County government is legally able to fund.
Discussion & Analysis: The presentation will provide additional information regarding the legal requirements of levying the Article 46 sales tax as well as examples of how other counties in North Carolina have addressed the Article 46 sales tax.
How does this relate to the Comprehensive Plan: Implementation of the Article 46 Local Option Sales Tax would further diversify the County’s tax base by adding an additional stream of sales tax revenue.
Budgetary Impact: Potential sales tax revenue received from the levying of this local option sales tax is estimated at approximately $1.6 million dollars, equivalent to about 1.5 cents on the County’s property tax rate.
Recommendation: Receive the informational presentation and discuss the desire for placing a referendum question on the ballot in 2020. Staff does not need a firm decision at this time, but if the Board desires for the item to go on the ballot in May of 2020, staff will need to start preparations by May of this year.