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May 18, 2015 (Regular Meeting) Page 2395 as a part of their budget. She further advised in addition to Cabarrus County losing funds, the City of Concord would also lose funds. A brief discussion ensued. The MOTION unanimously carried. Resolution No. 2015 -10 RESOLUTION BY THE CABARRUS COUNTY BOARD OF COMMISSIONERS REGARDING SENATE BILL 369 WHEREAS, Senators Harry Brown, Brent Jackson, and Ben Clark have filed and sponsored Senate Bill 369, titled "A BILL TO BE ENTITLED AN ACT TO PHASE -IN THE CONVERSION OF THE LOCAL SALES AND USE TAXES AUTHORIZED UNDER ARTICLES 39, 40, AND 42 TO A STATE SALES AND USE TAX THAT IS ALLOCATED TO THE COUNTIES AND CITIES ON A PER CAPITA BASIS AS A LOCAL REVENUE SOURCE," ( "SB 369 "); and WHEREAS, since enactment, sales taxes in North Carolina have been a primary funding source for the municipalities and counties of the State and considered the "property" of those local governments who provide the resources and infrastructure to generate the sales taxes; and WHEREAS, historically the majority of sales taxes have been distributed on a "point of delivery" basis due in large part to the fairness of the concept that those who pay for the infrastructure supporting sales should be entitled to collect the tax spawned by their investment; and WHEREAS, SB 369 has the stated purpose of taking revenues away from the place where they were generated and redistributing it to counties and municipalities that are less prosperous areas; and WHEREAS, in doing so the legislation provides a windfall to local governments, who have not provided the resources and infrastructure necessary to generate significant sales taxes for their local community, by taking it from the local governments whose communities and budgets bear the physical and fiscal brunt of the costs of development. In effect, the legislation proposes to socialize sales tax revenues and redistribute them under the guise of fairness; and WHEREAS, the taking of an asset statutorily vested in the local governments of North Carolina and redistributing it on the basis of a currently perceived "fairness" will be financially devastating to Cabarrus County and its towns, as well as a majority of counties and municipalities in the State, forcing them to make up the difference by increasing ad valorem taxes. Gifting the sales tax revenues on a per capita distribution is tantamount to a tax increase mandated by the Legislature; and WHEREAS, this legislation not only proposes to strip local governments of a statutorily vested funding source and mandate it to recover those revenues elsewhere, it proposes to further effectively increase County set aside requirements for public school capital outlays; and WHEREAS, despite the text of SB 369 stating the Governor may not reduce or withhold the distribution to local government, the legislation will convert the local sales tax to a state sales tax funneling it into the State's General Fund, which threatens future distributions to local governments just as has occurred with lottery proceeds, as well as the beer and wine taxes; and WHEREAS, ultimately this conversion of the local sales tax to a state sales tax under the guise of "fairness" is in fact unfair and a fundamental change in the way government is financed in North Carolina. NOW THEREFORE BE IT RESOLVED by the Cabarrus County Board of Commissioners: 1. That the passing of SB 369 threatens to take over $6 million in sales tax revenue from Cabarrus County annually; and 2. That the proposed legislation is far from fair, but rather it burdens the citizens of Cabarrus County and its municipalities; and 3. That the Cabarrus County Board of Commissioners adamantly opposes SB 369 and any similar legislation that threatens the status and distribution of local sales and use taxes; and 4. It is hereby requested that the local delegation of the North Carolina General Assembly elected to represent the interests of the citizens of