Item:
Title
Request for approval of a Resolution authorizing and approving the levy of an additional two dollars ($2.00) of the motor vehicle registration tax by the Research Triangle Regional Public Transportation Authority (dba “GoTriangle”) as authorized by North Carolina General Statute §105-561.
Body
Date of BOCC Meeting: November 12, 2024
Request for Board Action:
Agenda Text
The Board is requested to approve the resolution authorizing and approving the levy of an additional two dollars $2.00 of the motor vehicle registration tax by the Research Triangle Regional Public Transportation Authority dba GoTriangle as authorized by North Carolina General Statute §105-561.
The Research Triangle Regional Public Transportation Authority d/b/a GoTriangle (“GoTriangle”) is a regional public transportation authority created pursuant to Article 26 of Chapter 160A of the North Carolina General Statutes with the authority to levy an annual license tax upon any motor vehicle with a tax situs within its territorial jurisdiction. The purpose of the tax levied under this Article is to raise revenue for capital and operating expenses of an Authority in providing public transportation systems.
The North Carolina General Assembly passed House Bill 199 allowing for a two-dollar ($2) increase in vehicle registration tax and it was signed into law July 2, 2024 (Attachment 1, Page 26). GoTriangle, as the regional transit tax district for Wake, Durham and Orange Counties, anticipates an additional $2.6 million in annual revenue via the funds collected from the increase.
Pursuant to current statutory provision, the rate of tax levied under this Article may not exceed ten dollars ($10.00) per year. GoTriangle currently levies an annual license tax on motor vehicles in Durham, Orange and Wake counties of eight dollars ($8.00) per year. Three dollars ($3.00) of this tax is dedicated as a local source of revenue to support the Durham County Transit Plan, Durham County Transit Financial Plan, and Durham County Transit Governance Interlocal Agreement, all being approved by the Durham County Board of Commissioners, Durham-Chapel Hill-Carrboro Metropolitan Planning Organization, and GoTriangle. The GoTriangle Board of Trustees issued notice and held a public hearing on October 23, 2024, on this proposed two-dollar ($2.00) increase in the annual license tax upon motor vehicles in Durham, Orange and Wake Counties.
On October 1, 2024, the GoTriangle Special Tax Board received a presentation from GoTriangle staff Byron Smith on the process necessary to implement the new law. The process and timeline is as summarized below:
Timeline:
• October 23 - GoTriangle Board of Trustees holds public hearing
• October 23/24 - Special Tax Board considers and adopts resolution approving tax increase
• October 24 - November 19 - County Boards consider resolutions approving tax increase
• After approval by all of the County Boards - GoTriangle Board of Trustees considers resolutions approving tax increase
On October 24, 2024, the GoTriangle Special Tax Board adopted a resolution approving the two-dollar ($2.00) increase of the levy annual license tax upon motor vehicles in the Durham, Orange and Wake counties (Attachment 2). The proceeds of the two-dollar ($2.00) increase of the levy annual license tax upon motor vehicles will be used only for the purposes provided in NCGS §105-564, and such proceeds may only be used to supplement and not to supplant or replace existing funds or other resources for public transportation systems. Levy of the tax requires Board approval of this proposed Resolution by Durham County (Attachment 3), as well as separate resolutions approved by the other two counties, in order for the GoTriangle Board of Trustees to consider the levy (Attachment 4).
Alignment with Strategic Plan: This aligns with Strategic Plan Goals of Empowered Community and Sustainable Infrastructure and Environment.
Resource Persons (all Durham County): Keyar Doyle, Tax Administrator; Larissa Williamson, County Attorney; Ellen Beckmann, Transportation Director; Nathan McKinney, Senior Assistant County Attorney; Claudia Hager, County Manager.
County Manager’s Recommendation: The County Manager recommends that the board approve the resolution authorizing and approving the levy of an additional two dollars $2.00 of the motor vehicle registration tax by the Research Triangle Regional Public Transportation Authority dba GoTriangle as authorized by North Carolina General Statute §105-561.
Signature
County Manager: ____________________________