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NCACC Page 1 of 3 7 Frequently Asked Questions regarding local tax referenda The 2007 State Appropriations Act (1-11473) provides counties with the authority to levy either a land transfer tax (up to 0.4 percent) or a local sales tax (0.25 percent), following approval in a non - binding advisory referendum. H1473 creates two new articles under G.S. 105 — Article 60 for the local option land transfer tax (H1473 SECTION 31.17.(a)), and Article 46 for the local option % cent sales tax (H1473 SECTION 31.17.(b)). Question: What are the steps a county needs to consider when scheduling a referendum? Answer: Any county that is subject to Section 5 of the Voting Rights Act of 1965 will need to submit its request for pre - clearance to the U.S. Attorney General. The State of North Carolina has already submitted its request for pre - clearance of the authorizing legislation to the U.S. Attorney General. All counties must contact their local board of elections and the State Board of Elections in order to have the advisory referendum included on the ballot during a regularly scheduled election. A county may also call for and hold a special election. The special election may not be held within the period of time beginning 30 days before and ending 30 days after the date of any other primary, election, special election or referendum. Question: Can the ballot include advisory referendums for both the land transfer tax and the quarter -cent sales tax? Answer: Yes – both are authorized under state law. If both referenda pass, then the Board of Commissioners would have to choose which one to authorize, if they so desire. They cannot enact both. Question: Must the Board of County Commissioners levy a tax if the voters approve a referendum for either the local option transfer tax, sales tax or both? Answer: A Board of County Commissioners is not obligated to levy a tax if the majority of those voting in a referendum on either the land transfer tax or sales tax vote in support of a levy. Question: Can a county stipulate uses of the monies on the ballot as a part of the referendum? Answer: A county may not stipulate the use of the money on the ballot. A county Board of Commissioners may adopt a resolution that stipulates how they plan to use the revenues. Question: Is there a prescribed format for the question of the ballot? Answer: Yes. Legislation specifies how the question must be presented on the ballot: Land Transfer: Ballot Question – The form of the question to be presented on a ballot for a special election concerning the levy of the tax authorized by this Article shall be:'[] FOR [ ] AGAINST Real property transfer tax at the rate of up to [X] percent [X %] of value or consideration.' Note: The land transfer tax amount can be set at a rate up to .4 %, in increments of .1 %. Sales Tax: Ballot Question. – The form of the question to be presented on a ballot for a special election concerning the levy of the tax authorized by this Article shall Attachment number 3 http:// www. ncacc .org /revenueauthority- q &a.html G -4 Pag#14ft11 NCACC P.O. Box 1488 Raleigh, NC 27602 -1488 Tel: (919) 715 -2893 Fax: (919) 733 -1065 E -mail: ncacc@ncacc.org