AN ORDINANCE AMENDING CHAPTER 21 ARTICLE I OF THE CODE OF ORDINANCES TO INCREASE THE TOWN OF CHAPEL HILL TAX ON MOTOR VEHICLES (2009-03-09/O-7)

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 9^rd day of March, 2009.