AN ORDINANCE AMENDING CHAPTER 21 ARTICLE I OF THE CODE OF ORDINANCES TO INCREASE THE TOWN OF CHAPEL HILL TAX ON MOTOR VEHICLES (2009-02-23/O-10)

BE IT ORDAINED by the Council of the Town of Chapel Hill as follows:

Section 1.  Section 21-1 of the Town Code is hereby revised to read as follows:

“Sec. 21-1.  Imposition and levy of motor vehicle tax.

Each motor vehicle owned by a resident owner or operated by a business establishment located within the town limits which is registered for property taxes in the town shall be billed an annual vehicle tax of fifteen dollars ($15.00).  For purposes of this section, the term “motor vehicle” shall not include trailers which are not self-propelled.

The proceeds of said tax shall go into the Town’s General Fund.

Section 2.  A new Section 21-2 is hereby added to read as follows:

“Sec. 21-2.  Additional tax for public transportation purposes.

Each motor vehicle owned by a resident owner or operated by a business establishment located within the town limits which is registered for property taxes in the town shall be billed an additional annual vehicle tax of fifteen five dollars ($5.00) ($15.00).  For purposes of this section, the term “motor vehicle” shall not include trailers which are not self-propelled.

The proceeds of said tax shall be used only for financing, constructing, operating, and maintaining the Town’s public transportation system.”

Section 3.  A new Section 21-3 is hereby added to read as follows:

“Sec. 21-3.  Collection and payment of tax.

The taxes imposed by Sections 21-1 and 21-2 shall be billed and collected with the ad valorem personal property taxes imposed on motor vehicles.”

Section 4.  This ordinance shall become effective upon adoption.

This the 23rd day of February, 2009.