AG 1999 06 21 - Laserfiche WebLink

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County, was established to review three alternative revenue sources to finance capital facilities--particularly impact fees, impact taxes, and land transfer taxes. The group analyzed the legal requirements that apply to a system of impact fees: (1) the calculation of fees in proportion to the public facility need caused by new development, (2) the accounting of fees collected, and (3) the expenditure of revenue by a certain deadline to benefit the development for which it was collected. Seeking to avoid these constraints, the group eventually endorsed legislation authorizing an impact tax.s House bill 925, introduced by request7 in the spring of the 1989 General Assembly session, would have authorized Chapel Hill and Carrboro to adopt impact taxes to finance roads, stormwater facilities, open space and recreation, and police and fire stations. It would have also authorized the county to use such taxes to finance schools, libraries, stormwater facilit!es, open space and recreation, and public safety facilities, including jails. House bill 925 also provided that no such tax could be applied to areas subject to an impact fee adopted by'Chapel Hill, Carrl~oro, or the county. However, political opposition surfaced and the affected local governments were unable to agree quickly to proposed bill revisions. The bill was withdrawn less than a month after it was introduced. 6. The impact tax was intended to be as comprehensive as possible, essentially an excise lax on the incidenls or impacls o! land development and building construction rather than a privilege lax on the business of development and construction. A privilege tax could not have been applied to someone who conslructed a home for his or her own use and who was not in the construction business. 7. A bill introduced by request is a bill Whose sponsor does not necessarily supporl it or advocate its adoption. 31 26