GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
H	1
HOUSE BILL 861

 
 
Short Title:	Union County Schools Referenda.	()	
Sponsors:	Representative Shubert (By Request).	
Referred to:	Rules, Calendar, and Operations of the House.	
March 29, 2001

A BILL TO BE ENTITLED
AN ACT to authorize union county to hold a referendum on levying taxes for school construction.

The General Assembly of North Carolina enacts:
part 1.  General provision.
SECTION 1.  This act applies only to Union County.
PART 2.  Local sales and use tax.
SECTION 2.  Subchapter VIII of Chapter 105 of the General Statutes is amended by adding a new Article to read:
"Article 44.
"Second One-Cent (1¢) Local Government Sales and Use Tax.
"§ 105-515.  Short title.
This Article is the Second One-Cent (1¢) Local Government Sales and Use Tax Act.
"§ 105-516.  Purpose.
This Article gives the counties of this State an opportunity to obtain a source of revenue with which to meet their public school construction needs. It provides all counties of the State that are subject to this Article with authority to levy one percent (1%) sales and use taxes.
"§ 105-517.  Limitations.
This Article applies only to counties that levy the first one-cent (1¢) sales and use tax under Article 39 of this Chapter or under Chapter 1096 of the 1967 Session Laws, the first one-half cent (1/2¢) local sales and use tax under Article 40 of this Chapter, and the second one-half cent (1/2¢) local sales and use tax under Article 42 of this Chapter.
"§ 105-518.  Levy.
(a)	Authority. – If the majority of those voting in a referendum held pursuant to this Article vote for the levy of the taxes, the board of commissioners of the county may, by resolution, levy one percent (1%) local sales and use taxes in addition to any other State and local sales and use taxes levied pursuant to law.
(b)	Vote. – The board of commissioners of a county may direct the county board of elections to conduct an advisory referendum on the question of whether to levy local one percent (1%) sales and use taxes in the county as provided in this Article. The election shall be held on a date jointly agreed upon by the two boards and shall be held in accordance with the procedures of G.S. 163-287.
(c)	Ballot Question. – The form of the question to be presented on a ballot for a special election concerning the levy of the taxes authorized by this Article shall be:
'[ ] FOR   [ ] AGAINST
one percent (1%) local sales and use taxes, in addition to the current local sales and use taxes, to be used only for public school capital projects.'
"§ 105-519.  Administration.
Except as provided in this Article, the adoption, levy, collection, administration, and repeal of the additional taxes authorized by this Article shall be in accordance with Article 39 of this Chapter.
A tax levied under this Article does not apply to the sales price of food that is exempt from tax pursuant to G.S. 105-164.13B."§ 105-520.  Distribution and use of tax.
(a)	Distribution. – The Secretary must, on a quarterly basis, distribute to each taxing county the net proceeds of the tax levied under this Article by that county. If the Secretary collects taxes under this Article in a month and the taxes cannot be identified as being attributable to a particular taxing county, the Secretary must allocate these taxes among the taxing counties in proportion to the amount of taxes collected in each county under this Article in that month and must include them in the quarterly distribution.
(b)	Use. – A county may use the proceeds of a tax levied under this Article only for public school capital outlay purposes as defined in G.S. 115C-426(f) or to retire any indebtedness incurred by the county for these purposes.
(c)	Nonsupplant Restriction. – It is the purpose of this Article for counties to appropriate funds generated under this Article to increase the level of county spending for public school capital outlay above the level of spending before the levy of the tax authorized in this Article. A county that levies a tax under this Article must continue to spend for public school capital outlay purposes in its local school administrative units the same amount of money it would have spent for those purposes if it had not levied the tax.
"§ 105-521.  Expiration.
A tax levied under this Article expires five years after the effective date of its levy. A county's authorization to levy a tax under this Article expires five years after the effective date of the first tax a county levies under this Article, even if the tax has not remained in effect for the entire five-year period. The expiration of a tax pursuant to this Article does not affect the rights or liabilities of a county, a taxpayer, or another person arising under the expired tax; nor does it affect the right to any refund or credit of a tax that would otherwise have been available under the expired tax before its expiration.
If the Secretary receives a valid request for a refund of a tax levied under this Article after the tax has expired and the net proceeds have been distributed, the Secretary shall draw the refund from the taxing county's share of the net proceeds of the tax it levies under Article 39 of this Chapter or under Chapter 1096 of the 1967 Session Laws, as applicable."
SECTION 3.  A tax levied under Article 44 of Chapter 105 of the General Statutes, as enacted by this act, does not apply to construction materials purchased to fulfill a lump‑sum or unit‑price contract entered into or awarded before the effective date of the levy or entered into or awarded pursuant to a bid made before the effective date of the levy when the construction materials would otherwise be subject to the tax levied under Article 44 of Chapter 105 of the General Statutes.
part 3.  impact tax.
SECTION 4.(a)  Imposition of Tax.  If the majority of those voting in a referendum in Union County held pursuant to this act vote for the imposition of the impact tax, the board of commissioners of the county may, by resolution, impose and collect impact taxes to be paid for each new dwelling to help defray the costs to the county of public school capital needs, including the construction, equipment, expansion, improvement, and renovation of public schools, the need for which is created in substantial part by the new residential development that takes place within the county.  A "dwelling" includes any permanent structure having sleeping accommodations that is used as a residence, including apartment houses and manufactured housing, but excluding nonprofit institutions, nursing homes, and hospitals.
SECTION 4.(b)  The board of commissioners of the county may direct the county board of elections to conduct an advisory referendum on the question of whether to impose the impact tax in the county as provided in this act. The election shall be held on a date jointly agreed upon by the two boards and shall be held in accordance with the procedures of G.S. 163‑287.
SECTION 4.(c)  The form of the question to be presented on a ballot for a special election concerning the imposition of the impact tax authorized by this act shall be:
'[ ] FOR   [ ] AGAINST
the imposition of impact tax on new dwellings with the proceeds to be used only for public school capital projects.'
SECTION 5.(a)  Scope of Impact Tax Ordinance.  No impact tax shall be imposed unless the county has met the following procedural requirements:
(1)	Before adopting or amending an impact tax ordinance, the county board of commissioners shall hold a public hearing on the proposed ordinance or amendment. A notice of the public hearing shall be given so as to conform to G.S. 153A‑21.
(2)	The county planning board shall be afforded a reasonable opportunity to make comments or recommendations to the county board of commissioners on the appropriateness of the impact tax ordinance or an amendment to the impact tax ordinance.
SECTION 5.(b)  An ordinance authorized by this act shall apply everywhere within the county, including within the corporate limits and extraterritorial planning jurisdiction of any city, town, or municipal corporation within the county.
SECTION 6.  Amount of Impact Tax.  In no case shall an impact tax imposed under this act exceed two thousand five hundred dollars ($2,500) per new dwelling.  The tax shall be levied on the square footage of the dwelling.  In establishing the rate of the impact tax to be imposed, the county shall endeavor to approach the objective of having each new dwelling contribute to a public school capital costs reserve fund an amount of revenue that bears a reasonable relationship to that dwelling's fair share of the costs to the county of public school capital needs that are needed in part because of that dwelling.  In fulfilling this objective, the board of county commissioners shall, among other steps and actions, estimate the total costs of public school capital needs required during a reasonable planning period not to exceed 20 years.
SECTION 7.  Payment of Impact Tax.  An ordinance adopted under this act shall provide for payment of the impact tax at the time a certificate of occupancy is issued for the subject property.
SECTION 8.(a)  Public School Capital Costs Reserve Fund.  Impact tax collected by the county shall be deposited in a Public School Capital Costs Reserve Fund established pursuant to Part 2 of Article 3 of Chapter 159 of the General Statutes.  The funds may be expended only on the costs to the county of public school capital needs.
SECTION 8.(b)  In order to provide that impact tax paid by a particular dwelling is expended on public school capital needs related to that dwelling, the county may establish within the county two or more districts or zones, and impact tax generated by dwellings within those districts or zones shall be spent on the public school capital needs within those districts or zones. 
SECTION 9.(a)  Appeals Process.  An ordinance adopted under this act may provide that any person aggrieved by a decision regarding an impact tax may appeal to the county board of adjustment.  If the ordinance establishes an appeal procedure, it shall state the time within which the appeal must be taken to the board of adjustment, the possible grounds for an appeal, the board's authority in the matter, whether the tax must be paid prior to resolution of the appeal, and other procedural or substantive matters related to appeals.
SECTION 9.(b)   Any decision of the board of adjustment shall be subject to review by the superior court within the county by proceedings in the nature of certiorari in the same manner as provided in G.S. 153A‑345(e).
SECTION 10. Refunds.  If an ordinance adopted under this act is declared to be invalid by any court of competent jurisdiction, then any impact tax collected under the ordinance shall be refunded to the person paying it together with interest at the rate established under G.S. 105‑241.1, being the same rate paid by the Secretary of Revenue on refunds for tax overpayments.
SECTION 11.(a)  Limitation on Actions.  Any action contesting the validity of an ordinance adopted pursuant to this act shall be commenced not later than nine months after the impact tax is paid.
SECTION 11.(b)  Any action seeking to recover an impact tax shall be commenced not later than nine months after the impact tax is paid.
SECTION 12.  Expiration.  An ordinance that imposes an impact tax under this act expires five years after it is adopted.  A county's authorization to impose an impact tax under this act expires five years after the effective date of the first ordinance imposing an impact tax under this act, regardless of whether the impact tax has remained in effect for the entire five‑year period.  The expiration of an ordinance imposing an impact tax adopted pursuant to this act does not affect the rights or liabilities of a county or any person arising under the expired ordinance; nor does it affect the right to a refund of the impact tax that would otherwise be available.
part 4.  Effective date.
SECTION 13.  This act is effective when it becomes law.