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Town of Chapel Hill Executive Summary |
Meeting Date: 02-23-2009 AGENDA #10 |
Title of Agenda Item: Increase in Town Motor Vehicle Tax
Background: Session Law 2008-16, ratified on June 25, 2008 authorized an additional $10 per vehicle annual registration tax for the Town, allowing the Town to increase its motor vehicle tax from $20 to $30. Due to the provision of the statute requiring amounts in excess of $15 per vehicle to be used for public transportation; all of the additional $10 increase will go to the transit fund. There is an approximately three month lag before the new fee can be incorporated into the vehicle property tax bills. The first bills reflecting the $30 fee will be sent in June with the Town receiving the first additional revenues in July of 2009.
Fiscal Note: The estimated budget impact of implementing the additional $10 of motor vehicle tax will be an approximate increase of $282,000 in the Transit Fund for FY2009-10. Staff will request appropriation of these funds as part of the Council’s adoption of the FY2009-10 Transit Fund Budget.
Staff Recommendation(s): Staff recommends that the Council enact the attached ordinance increasing the Town’s motor vehicle tax from $20 to $30.
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