AG 2002 10 21 (Regular) - Laserfiche WebLink

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September 30, 2002 'ICABAI]RUS COUNTYI NORTH CAI]O~INA October 2ist Agenda MEMORANDUM TO: Board of Commissioners RE: Local Option Sales Tax (½ Cent) The NC Legislature has authorized counties to act upon an optional ½ cent sales tax effective December 1, 2002. County Commission action is required to implement the tax. Thirty days notice to the NC Department of Revenue must occur for collections of the tax to begin. If implemented on December 1, 2002, action by the County Commission and notification to the Department of Revenue must happen prior to November 1, 2002. Without a special called meeting or recess of the regular (October 21 st) meeting, there would be no further opportunity for the Board to act upon the issue to allow for its implementation by December 1.' NCACC has provided estimates for Cabarrus County and its municipalities of the expected impact of the ½ cent sales tax if adopted by December 1st (Attachment A). Based upon historic data, December sales tax receipts along with January receipts usually run quite higher than other months. Using NCACC projections, I would estimate December. and January's sales tax (½ cent) to exceed $800,000 together. Delay in consideration and/or implementation does create a budget impact, which must be addressed. If the tax is not authorized, then budget actions must also be considered. The sales tax levy does impact upon local municipal governments. I am not sure 'of the direct' impacts upon each local government but have attached a response from the City of Concord detailing the issue for them (Attachment B). A copy of the proposed resolution for your action is included (Attachment C). Issues to be addressed in considering this item are included as indicated in the NCACC email (Attachment D). Office of the County Manager P.O. Box 707 · Concord, NC 28026-0707 · 704-920-2100 · Fax 704-920-2820 · Charlotte 704-375-0829 www. co.cabarrus.nc.us