AG 1996 12 16 - Laserfiche WebLink

Home Browse Search

Proposed Goals (As Approved by Board of Directors) Taxation and Finance 1. Growth in Reimbursements Seek legislation re-establishing growth in state reimbursements for inventory and intangibles taxes previously repealed by the General Assembly; and to reimburse counties for the total amount of tax revenues lost because of the Homestead Exemption. (1995 goal, Amended) This goal combines several relating to reimbursements to local governments to compensate for tax revenue lost because of action by the General Assembly. Reimbursements totaled over $164 million for 1994-95. (This figure does not include intangibles taxes that were still being collected at that time). With the "freeze" in reimbursements occasioned by the economic downturn and state budget shortfall of 199 l, local governments were denied growth in these reimbursements that would have compensated for natural revenue growth had the taxes remained in effect. When the final elements of the intangible tax were repealed in 1995, no growth factor was built into the reimbursement formula. In addition, local governments received no additional reimbursement when the Homestead Exemption was increased in 1993 and only half of the funds lost because of additional increases during the most recent legislative session. 2. Exemption from Sales Taxes Seek legislation 1) to exempt county governments, public schools and community colleges from payment of state and local sales taxes as well as state motor fuels taxes and 2) to amend G.S. 105-164.14 (0 to allow the chair of the board of county commissioners to designate other county officials to receive sales tax refund information from the Department of Revenue. (Taxation and Finance Steering Committee). Counties are currently reimbursed for sales taxes paid. Public schools and community colleges are not. Counties are reimbursed for motor fuel taxes paid and school boards are exempt from this tax. Current law allows those who chair boards of commissioners to receive sales tax refund information. The Depa~ianent of Revenue has interpreted this statute so that only board chairs can receive this information. This proposal would allow designation of others to receive the information. 3. Land Transfer Tax Support legislation to authorize every county in the state to levy a one percent land transfer tax on a local county option basis, with proceeds to be used for capital improvements, school construction and infrastructure. (Haywood County, Annual Conference Resolution). Land transfer taxes, as distinct from the statewide ."Deed Stamp Tax," are authorized in seven northeastern North Carolina counties. If imposed statewide, a one per cent land transfer tax could generate approximately $224 million. 4. School Construction Contracts Support legislation to enable all counties to use Installment Finance Contracts for construction of school facilities. (Henderson County, Annual Conference Resolution).