Orange board ponders tax vote

HILLSBOROUGH -- The Orange County commissioners decided Tuesday that more discussion is needed before voting on whether to put a transfer tax question on the ballot in the upcoming election.

"I think we're all trying to get up to speed on what the legislature did," Chairman Moses Carey Jr. said.

In the last legislative session, the General Assembly voted to allow counties the option of adding a quarter-cent sales tax increase or a 0.4 percent tax on land transfers. Either way, local voters would have to approve the additional tax in a referendum.

Commissioners wrestled Tuesday with the implications of other revenue changes from the legislature, mostly related to the county's Medicaid burden and a redistribution of sales tax funds.

The county faces a shortfall of a little more than $500,000 this year, due in part to that redistribution, county staff told the board.

"This first year is worse than I thought," Commissioner Alice Gordon said.

The land transfer tax option would net the county just over $4 million in additional revenue, compared with just over $3 million from the sales tax increase, County Manager Laura Blackmon said.

The commissioners agreed to continue discussion when they meet Aug. 30.

The board must decide by Sept. 4 in order to put a revenue option before voters on the November municipal election ballot. Another option would be the May primary ballot.

Carey said it was important the board take time to educate itself and voters on the transfer tax option before asking for a referendum.

Only 13 other counties have decided which option they'll put before voters, with eight electing for a land transfer tax and five deciding on the sales tax, Blackmon said.

On another subject, the board heard from members of rival factions vying for control of the Hillsborough Farmers Market.

A group of farmers and vendors asked to be recognized as the official Hillsborough Farmers Market, saying they are unable to work with the current market management. They promised a "professionally managed market that is run with accountability and transparency."

Current market co-manager Beverly Blythe called the group "power-hungry," and said the majority of the market membership wants to maintain the current vendor-operated structure.

The county is building a facility for the farmers market that will be dedicated next month.

Carey promised the rules and guidelines for the market would be fairly and openly developed, but he warned it would still not be big enough to accommodate everyone who wants to sell their wares.