AG 2002 10 21 (Regular) - Laserfiche WebLink

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Attachment 'D ' JFrank Clifton . · From: NCACC1 [NCACC@NCACC.ORG] Sent: Tuesday, September 24, 2002 2:45 PM To: fwclifton@co, cabarrus, nc. us; jdday@co.cabarrus, nc. us Cc: ckstraub@co.cabarrus.nc, us; sfbonds@co.cabarrus, nc. us Subject: Sales tax information Managers, Finance Officers and Clerks: Below are some pertinent facts about the sales tax bill that was passed on third reading by the House today and on second reading by the Senate. It is expected to be passed on third reading by the Senate on Wednesday morning. We anticipate having a new sample resolution for you by Monday. FACT SHEET Senate Bill 1292, Conference Report Local Option Sales Tax 1. Tax Rate - Enactment of this tax will make the overall state Sales tax rate 7 percent. The half-cent state sales tax enacted last year is scheduled to sunset or end July 1, 2003. 'At that time the overall rate will drop to 6 ½ percent. Nothing in this bill affects that sunset. 2. Hold Harmless - There is No hold harmless provision in the bill for cU~rrent year. The hold harmless provisions scheduled to take effect July 1, 2003 are not affected by this bill. 3. Effective Date - No sooner than December 1, 2002. 4. Distribution - Proceeds will be distributed half per capita and half point of sale. Proceeds will be distributed quarterly until July 1, 2003, thereafter monthly. 5. Local resolution - Each county board of commissioners will be required to take action on a resolution to levy the tax. Previous action to levy the tax authorized for next year is not sufficient. 6. Notice and hearing - a county will be able to pass a resolution t° levy the tax by giving at least 48 hours notice of its intent to adopt the resolution. No formal public hearing is required. 7. Notice to Secretary of Revenue - A county will be required to give the Secretary of Revenue 30 days notice of the tax levy, Thus, action must be taken and the Secretary notified by November 1st if the tax is to take effect by December 1st.