2007-11-15 Work Session
NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 31
WORK SESSION, NOVEMBER 15, 2007 PAGE 244
ASSEMBLY
The New Hanover County Board of Commissioners met for a Work Session on Thursday, November 15,
2007, at 2:30 p.m. in Conference Room 601 at the New Hanover County Government Center, 230 Government
Center Drive, Wilmington, North Carolina.
Members present were: Chairman William A. Caster; Vice-Chairman Robert G. Greer; Commissioner Ted
Davis, Jr.; Commissioner William A. Kopp, Jr.; Commissioner Nancy H. Pritchett; County Attorney Wanda M.
Copley; Deputy Clerk to the Board Teresa P. Elmore; and Assistant County Manager Dave Weaver.
Chairman Caster called the meeting to order and announced that the purpose of the work session is to hear
an update from Paul Meyer, NCACC Senior Associate General Counsel, concerning new solid waste legislation,
local tax options, and legislative changes that will impact the County?s Budget for FY08-09.
Local Tax Options
Mr. Meyer reported that the State legislators approved two local option revenue sources for counties to levy
for public purpose such as funding of public schools and other infrastructure needs. The legislation authorizes a
.0025 cent sales tax or a .04 percent land transfer tax for each county to choose by an advisory referendum. If voters
approve either tax option, the board of commissioners has the option to levy the tax by adopting a resolution. To
terminate an existing land transfer tax, the board of commissioners is required to adopt a resolution repealing the
tax. However, a special election is required to repeal an existing sales tax.
In discussion of the land transfer tax, Mr. Meyer explained that the seller pays the tax on any real estate
transaction where an actual compensation is paid. The tax does not apply to gifts, inheritances, or governmental
transfers of land. Most of the revenue is generated from multiple sales of a property through the developer, home
builder, and new homeowner, which is why the home builders and development communities have opposed the tax.
In the recent election of November 6, 2007, five of eleven counties (Sampson, Catawba, Pitt, Martin, and
Surry) approved the local sales tax referendum. Voters defeated the land transfer tax in 16 of 16 counties. Five
counties had both options on the ballot and voters defeated the ballot in each county. To get a referendum passed,
he suggested getting the business community involved in educating the public and by providing clear and concise
material on the proposed use of tax proceeds.
County Attorney Copley advised that the Board will need to make a decision in January to allow sufficient
time to place a referendum on the ballot for the May primary election.
Legislative Impact on Budget
Mr. Meyer spoke on legislation that would impact FY08-09 Budget
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Homestead Exemption ? Increased to $25,000 effective July 2008
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Circuit Breaker ? Property tax based on tax payer?s income effective Fall 2008
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Senate Bill 1309 ? Fairness in Property Tax Value (no growth in tax base except in a revaluation year)
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House Bill 1889 ? Wildlife Conservation Plan (reduction in tax value for 10 acres of land or more set aside
for wildlife habitat)
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House Bill 1688 ? Motor Vehicle Collection Tax (to help counties with uncollected taxes)
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Employee Rate Increase for Retirement Contributions
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Senate Bill 580 ? Increased benefits for retired employees
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Increase E-911 local government tax to 70 cents for wireline and wireless phones
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Senate Bill 1513 ? Counties authorized to finance roads and related transportation improvements
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Counties to pay cost of telephone systems for court system
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Loss of funds from cable TV franchises
Solid Waste Management Legislation
Mr. Meyer spoke on Solid Waste Management Legislation:
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Senate Bill 6 ? Landfill
Setback requirements for landfills
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Revise distribution of disposal tax
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State permit fees implemented with performance standards
?
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Senate Bill 1492 ? Solid Waste Reform
Imposes a $2 per ton excise tax (July 2008) for clean up of old landfills
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New buffer requirements
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Monitoring system requirements
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Lining of construction and demolition landfills
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Removal of franchise authority for cities and counties
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Implementing stronger environmental requirements for air quality and ground water controls
?
Mr. Meyer announced that the NCACC will hold work sessions in January to help counties develop
strategies in support of the local option revenue tax.
NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 31
WORK SESSION, NOVEMBER 15, 2007 PAGE 245
ADJOURNMENT
There being no further discussion, Chairman Caster expressed appreciation to Mr. Meyer for his update and
adjourned the meeting at 3:55 p.m.
Respectfully submitted,
Teresa P. Elmore
Deputy Clerk to the Board