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Agenda June 21, 1999 Page l0 Impact Fees on New Construction Although widely used elsewhere in the U. S. in areas of high growth, only a few N. C. counties/cities are authorized to impose impact fees. (A detailed summary is attached as Exhibit D. It was developed as part of a study effort of the local Alternative Revenue Task Force in 1996-1997.) Specific legislation is required. Opposition from the real estate industry in N. C. could be expected on any attempt to pursue impact f~es (see Exhibit E). · Mr. Fennel's 3 - 2 - 1 Sales Tax Plan Although the concept may make sense to us locally, it is a further restriction to how the State funds education. (See Exhibit F 3-2-1 resolution). Without extensive research of at what level and how the State funds public schools, it is difficult to know how such a plan might work. A thorough study might determine a 'detailed' obligation of various State revenues to public education expense through direct designation of funding sources could be implemented. Obviously, for such a study to be pursued and implemented would require statewide support and champions of the cause in the legislature. There are numerous states throughout the country that have struggled with similar issues and ultimately resolved the issue (one way or another), tt may be as difficult to resolve inequities in the various formulas used to establish how education is funded as it will be in determining what source of revenues to dedicate to education. The proposal may be worthy of further study, but that effort must occur at the N. C. Legislative level to have any impact. · Supplemental School Taxes (Exhibit G, Article 36, "Voted Tax Supplements for School Purposes" and Exhibit H, "Focus Session One - Supplemental School Tax" are attached for references.) Regardless of how this approach is viewed, it is still a property tax. Variables of the approach may be considered inclusive of options having some significant implications both operationally and politically. Some of the proposals that follow relating to this option may require further investigation if pursued (possibly even N. C. Legislative approval) and are offered only as "what if's?"