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NCACC Page 2 of 3 ' Question: If the voters pass the referendum for the land transfer tax, what happens next? Answer: If the Board of Commissioners wishes to levy the tax, it must provide 10 days public notice of its intent to adopt a resolution to levy the tax. After it adopts the resolution, it must send a certified copy of the resolution along with a certified copy of ' the election results of the referendum to the county Register of Deeds office. Question: When is the earliest the land transfer tax will become effective if the county board of commissioners levies the land transfer tax via resolution following a ' successful referendum? Answer: The tax may become effective only on the first day of a calendar month set in the resolution levying the tax, which may not be earlier than the first day of the second succeeding calendar month after the resolution is adopted. For example, if a ' successful referendum is held during the November general election and the Board adopts the resolution levying the tax within the month of November, after the required 10 days of public notice, the county could begin collecting the tax on January 1. Question: Are there restrictions on the use of either of the new local option tax ' be:'[ ] FOR [ ] AGAINST Local sales and use tax at the rate of one - quarter percent (0.25 %) in addition to all other State and local sales and use taxes.' ' Note: The sale tax amount is set at a rate of .25 %. ' Question: When is the earliest the sales tax will become effective if the Board of County Commissioners levies the sales tax via resolution following a successful referendum? Answer: The sales tax may become effective on the first day of any calendar quarter ' so long as the county gives the Secretary of Revenue at least 90 days' advance notice. For example, if a referendum is held in November during the general election ' and passes, the earliest a county could begin collecting the revenue would be April 1 of the following year, provided it adopts a resolution levying the tax and forwards it to the Department of Revenue prior to December 31. ' Question: If the voters pass the referendum for the sales tax, what happens next? Answer: If the Board of Commissioners wishes to levy the tax, it must provide 10 days public notice of its intent to adopt a resolution to levy the tax. After it adopts the resolution, it must send a certified copy of the resolution along with a certified copy of ' the election results of the referendum to Kenneth R. Lay, the Secretary of the Department of Revenue. The DoR's address is: Department of Revenue ' P.O. Box 25000 Raleigh, NC 27640 ' The Association has prepared a model resolution ( Word doe I PDF) for a successful sales tax referenda. ' Question: If the voters pass the referendum for the land transfer tax, what happens next? Answer: If the Board of Commissioners wishes to levy the tax, it must provide 10 days public notice of its intent to adopt a resolution to levy the tax. After it adopts the resolution, it must send a certified copy of the resolution along with a certified copy of ' the election results of the referendum to the county Register of Deeds office. Question: When is the earliest the land transfer tax will become effective if the county board of commissioners levies the land transfer tax via resolution following a ' successful referendum? Answer: The tax may become effective only on the first day of a calendar month set in the resolution levying the tax, which may not be earlier than the first day of the second succeeding calendar month after the resolution is adopted. For example, if a ' successful referendum is held during the November general election and the Board adopts the resolution levying the tax within the month of November, after the required 10 days of public notice, the county could begin collecting the tax on January 1. Question: Can a county spend public money educating citizens on issues related to ' the local option revenue sources and the referendum process? Answer: Yes. Similar to an election for a general obligation bond, a county may spend money to educate the public on issues related to either of the new local option revenue sources. However, a county may not spend money advocating for or against I the sales tax or land transfer tax referendum I http://wvrw.ncacc.org/revenueauthority-q&a.ht'ml G -4 Attachment number 3 Padd011 Question: Are there restrictions on the use of either of the new local option tax ' revenues? Answer: No. Land transfer tax revenues are expressly authorized to be used for any lawful purpose. The sales tax is not restricted or earmarked. ' Question: If the referendum fails, can a county hold a subsequent referendum on the same question, and if so, must a county wait a certain period of time prior to holding another referendum? Answer: There are no restrictions on resubmitting either option to the voters again ' after an unsuccessful referendum, other than the 30 -day window mentioned above. Question: Can a county spend public money educating citizens on issues related to ' the local option revenue sources and the referendum process? Answer: Yes. Similar to an election for a general obligation bond, a county may spend money to educate the public on issues related to either of the new local option revenue sources. However, a county may not spend money advocating for or against I the sales tax or land transfer tax referendum I http://wvrw.ncacc.org/revenueauthority-q&a.ht'ml G -4 Attachment number 3 Padd011