AGENDA #4e

MEMORANDUM

TO:                  Mayor and Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:            Vehicle Taxes for Fiscal Year 2000-2001

DATE:             July 5, 2000

The attached ordinance would increase the Town motor vehicle tax for fiscal year 2000-2001 from $15 to $20 per vehicle, with additional revenue from the increase allocated for the Transportation Fund as authorized by North Carolina General Statute Sec. 20-97.

We estimate the additional revenue would total about $125,000 for the transit system in 2000-2001. This revenue was included in budget estimates for the Transportation Fund budget adopted by the Council on June 26.

This amendment was inadvertently omitted from the list of items considered by the Council as part of the Budget for the 2000-2001 Fiscal Year.

RECOMMENDATION

That the Council adopt the attached amendment to the Town Code of Ordinances setting a Town vehicle tax of $20 per vehicle for the 2000-2001 fiscal year.

AN ORDINANCE AMENDING CHAPTER 21 ARTICLE I OF THE CODE OF ORDINANCES TO INCREASE THE TOWN OF CHAPEL HILL TAX ON MOTOR VEHICLES (2000-07-05/O-1)

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. Registration of vehicles.

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 license fee  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 five dollars ($5.00).  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 5^th day of July, 2000.