AG 2002 10 21 (Regular) - Laserfiche WebLink

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was repealed and cities were reimbursed for this loss of revenue under a formula that included the expected growth of these monies. In 1991, the General Assembly ~'froze" all growth in this reimbursement. The remaining elements of the intangibles tax were repealed by the General Assembly on January 1, 1995. These distributions were also replaced with a reimbursement without growth formula. The distribution of the reimbursement is based on the amount received in Fiscal Year 1994-95. The allocation of county area funds among. County and City governments is based on the previous year's proportional tax levies. The Intangibles Tax Reimbursement is expected.to provide $458,000 or in Fiscal Year 2002-2003. Sales Taxes: Two percent of the six percent sales taxes paid on retail sales in North Carolina.is the local sales taxes levied by the City and County. These taxes consist of a one-percent tax that was first levied in 1971, a one-half cent tax levied in 1983, and a one-half cent tax levied in 1986. The State of North Carolina collects the sales taxes and distributes them to the local units. Sales tax revenues are distributed on a proportional population basis in Cabarrus County. Sales taxes are estimated to be $7,600,000 in Fiscal Year 2002-2003. Concord has experienced a steady growth in sales tax over the past few years and the opening of Concord Mills bodes well for the future growth of this revenue. Utility Franchise Tax: ,~s of July 1, 1999, each City's share of the utility franchise fee is based on actual receipts from' electric and local telephone, including cellular phones. '~These. funds are collected by the State and are distributed to the City based on the actual receipts from the providers for services provided within the City limits. This revenue source is expected to be $1,800,000 for Fiscal Year 2002-2003. Piped Natural Gas Excise Tax: The City of Concord received the first distribution of this tax on December 15, 1999. The city's share is one-half of the amount of the tax attributable to customers within the city's municipal boundaries during the quarter. The Secretary of Revenue will determine the city's benchmark amount and the amount distributed to a city under the new 'tax may not exceed the city's benchmark amount until each city has received its benchmark amount. Concord's benchmark amount is $326,312. This revenue sources is expected to be $200,000 for Fiscal Year 2002-2003. inventory Tax Reimbursements: Prior to 1988, manufacturers', wholesalers' and retailers' inventories were included in local ad valorem tax levies. The North Carolina General Assembly approved a reimbursement mechanism for these inventories that essentially "froze" them at their 1988 values. The inventory tax reimbursements have been estimated to provide $1,167,000 for Fiscal Year 2002-2003. Powell Bill Street Allocation: These funds represent redistribution by the State of a portion of the motor fuels taxes collected. The use of these funds is restricted to maintaining, repairing, constructing, reconstructing or widening any public street or thoroughfare within the City limits. Bridges, drainage, curb and gutter and other necessary appurtenances are also approved uses of these funds. One-quarter of distribution is based on the number of miles of local streets in the City and the remainder is distributed on a population basis. These funds are. expected to provide $1,886,000 for Fiscal Year 2002-2003. Privilege License Taxes: Each business activity operating within the City limits is required to purchase a privilege license to conduct such business. These taxes are a revenue measure provided to cities by the North Carolina General Statutes. We are recommending changing to a gross receipts basis for our privilege license ordinance effective July 1, 2002. A total of $500,000 in revenues has been estimated in this budget.