Title
Vote on a request to approve a resolution calling for a special referendum on the Article 46 local option sales tax.
Abstract
Action Requested: Vote on a request to approve a resolution calling for a special referendum on the Article 46 local option sales tax.
Introduction & Background: The North Carolina General Assembly enacted the "One Quarter Cent (1/4) County Sales and Use Tax Act" in 2007 under Article 46 of Chapter 105 of the North Carolina General Statutes (Session Law 2007-323), which authorizes counties to levy a local sales and use tax. Under the legislation, counties seeking to levy the sales and use tax must conduct an advisory referendum in accordance with the provisions of the North Carolina General Statutes Section 163-287
Discussion & Analysis: The referendum will allow county voters to have direct input on the addition of this local option sales tax to Chatham County. Assuming passage of the referendum, the sales tax would generate an estimated additional $1.6 million annually that the County would be able to use to fund additional programs, projects, or initiatives.
How does this relate to the Comprehensive Plan: Should the referendum pass, the additional funds generated by the local option sales tax will be used to further many of the goals outlined in the Comprehensive Plan.
Budgetary Impact: No immediate budgetary impact. Upon successful referendum and levying of Article 46 local option sales tax, estimated additional annual sales tax revenue of approximately $1.6 million.
Recommendation: Vote to approve the resolution calling for a special referendum on the Article 46 local option sales tax.