121 West Margaret Lane, Suite A Hillsborough, NC 27278 by murplelake80


									TO:              Hillsborough/Orange County Chamber Members

FROM:            Tom Struckmeyer, Chair, Business & Government Affairs Committee
                 Carol Ann Mullis, Chair, Education Committee

DATE:            July 11, 2005

RE:              Executive Summary on Orange County Schools District Tax / Countywide Schools Tax

On June 23, 2005 the Orange County Board of County Commissioners (BOCC) heard the initial report on the
possible Orange County Schools supplemental district tax referendum.

Due to a $2.1 million shortfall in the Orange County Schools (OCS) budget, the BOCC is considering adding a
referendum to the November 8, 2005 ballot that would allow the BOCC to levy a tax on property within either
the OCS district, or the county as a whole, in order to supplement the schools. They will be making a decision
on whether to put this issue on the ballot at their next meeting, scheduled for August 16. Attached are the
documents that were distributed at the June 23 meeting.

Under NC law, the supplemental tax may not exceed $0.50 per $100 of property value if the tax is limited to the
Orange County School district. If the supplemental tax is levied on the county as a whole (including the Chapel
Hill / Carrboro School System) the tax can’t exceed $0.60 per $100 of property value. The Chapel Hill /
Carrboro School System has had a school supplemental tax in effect, at various rates, since 1909. Their current
rate is $0.35 per $100. All monies collected would be distributed on a per capita basis. The Board(s) of
Education would submit, in their annual budget, the amount it would like levied, up to the maximum rate
allowed based on the referendum language. The taxes collected are not considered county appropriations.
Therefore, the monies would not belong to the county; they would belong to the school system.

As an example, a $250,000 property, with a supplemental tax rate of $0.35 per $100 (the current Chapel Hill /
Carrboro rate), would cost the owner an additional $875 per year.

It is important to remember that the BOCC will determine the language of the ballot referendum (including the
time limit, the maximum rate allowed without another referendum, whether it is countywide or OCS district
wide, etc.). In order to get this issue on the November ballot, the BOCC will have to develop the language used
on the ballot by September 1. Members of the business community are asked to consider the proposed
referendum and the impact on both businesses and residents. The Hillsborough / Orange County Chamber
would like your feedback. Please call 732-8156 or email Margaret@HillsboroughChamber.com.

                               121 West Margaret Lane, Suite A * Hillsborough, NC 27278
info@hillsboroughchamber.com             919.732.8156 * Fax: 919.732.4566          www.hillsboroughchamber.com

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