Sales Tax - Article 46

Background

In the November 2011 election, Orange County voters approved the Article 46 One-Quarter Cent (1/4 cent) County Sales and Use Tax, which became effective on April 1, 2012.

The Sales and Use Tax is estimated to generate approximately $2.5 million, annually. In June 2011, the County and school systems outlined potential initiatives (PDF) that could be funded by the tax, if approved. The Board of County Commissioners approved a ten-year commitment to allocate the proceeds as follows:

  • 50% of the funding will be allocated equitably between the County’s two school systems, based on the Average Daily Membership (ADM) of each school system, for the dedicated purpose of funding capital projects, including but not limited to, facility improvements at older schools and the procurement of technology.
  • 50% of the funding will be allocated to Orange County Economic Development initiatives, including funding infrastructure improvements needed to recruit new businesses and expand existing businesses; funding for business loans and grants to grow businesses in Orange County; targeted business recruitment, retention, and expansion efforts; and community branding and marketing.

Financial Tracking and Collection

The funds remain separate from the County’s General Fund, in a Special Revenue Fund, to allow for more isolated and accurate tracking of revenues and expenditures.

The NC Department of Revenue (DOR) coordinates the collection and distribution of sales tax revenue. County receipt of sales tax revenue can take upwards of three months. For more information, please refer to the DOR’s Sales Tax Distribution and Closeout Schedule (PDF).

The tables in the report outline revenue collected and expenses incurred, since the tax's inception. The tables are updated by the fifth of each month, with the prior month's information. All revenue and expense figures have been rounded to the nearest dollar. Please direct any questions or comments to Finance and Administrative Services.