GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	1 

HOUSE JOINT RESOLUTION 883

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Sponsors: Representatives Arnold; and Hurley.

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Referred to:  Rules, Calendar & Operations of the House.

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April 12, 1995

A JOINT RESOLUTION AUTHORIZING THE LEGISLATIVE RESEARCH COMMISSION TO STUDY LOCAL GOVERNMENT REVENUE OPTIONS SUBJECT TO LOCAL REFERENDUM.
Whereas, over the past 10 years, the elimination of the federal revenue-sharing program, federal legislation increasing local government mandates, and population growth have created needs for additional local government revenue; and
Whereas, during the same period, State legislation has eliminated portions of the property tax base; and
Whereas, there is clearly a need to study and catalogue unfunded local mandates; and
Whereas, the State's reimbursements to local governments along with State-shared revenues cost the General Fund several hundred million dollars each year but are subject to reduction in times of State budget deficits; and
Whereas, local governments have advised that they cannot meet their revenue needs or achieve fiscal independence without their own revenue options; and
Whereas, local revenue needs and appropriate revenue sources can vary from one locality to the next; and
Whereas, local government units in North Carolina must seek State approval for new sources of revenue; and
Whereas, the General Assembly has been advised by local governments that local governments may need a menu of alternative local revenue sources;
Now, therefore, be it resolved by the House of Representatives, the Senate concurring:
Section 1.  The Legislative Research Commission is authorized to study the need for additional local government revenue sources to supplement the property tax, local sales and use taxes, and other existing revenue sources and to recommend whether additional options, if any, shall be subject to a vote of the people of the local unit.  The Commission may review recent changes in federal and State law that have reduced financial assistance to local governments, created needs for increased expenditures, and restricted the property tax base.  The Commission may develop proposed options for local revenue sources and, in doing so, should consider the fiscal impact of each proposal, how to simplify the  administration of each proposal, how to reduce the burden on businesses, individuals, and the Department of Revenue in complying with each proposal, and other practical and legal issues associated with the proposals.  When the recommendations of the Commission, if enacted, would result in an increase or decrease in State or local tax revenues, the report of the Commission shall include an estimate of the amount of the increase or decrease.
Sec. 2.  The Commission may call upon the Department of Revenue and the State Treasurer and upon units of local government to cooperate with it in its study.
Sec. 3.  The Commission shall make a final report of its recommendations to the 1997 General Assembly and may make an interim report to the 1996 Regular Session of the 1995 General Assembly.
Sec. 4.  This resolution is effective upon ratification.