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:

  • Fifty percent (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.
  • Fifty percent (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

Article 46 funds remain in a Special Revenue Fund separate from the County’s General Fund, allowing for a more isolated and accurate tracking of revenues and expenditures.

The NC Department of Revenue (NCDOR) coordinates the collection and distribution of sales tax revenue. County receipt of sales tax revenue from its original assessment is approximately three months. For more information, please refer to NCDOR’s Sales Tax Distribution and Closeout Schedule (PDF).

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

County Economic Development Initiatives

  • Project Name: Buckhorn Mebane Phase 2 Water and Sanitary Sewer Project
  • Approved: June 2012 (PDF)
  • Budget: $4,591,546

The project area is part of the 3,000 acre Efland/Buckhorn/Mebane Utility Planning Area and comprises over 800 acres of economic development land use. This area is generally located along a 3-mile corridor south of I-85/I-40 and north of West Ten/Bowman Roads. 

A gravity sewer ‘backbone’ system is being installed that will flow back to the City of Mebane. In addition, 16-inch water mains will be installed to support an additional 900 acres with new and enhanced water supply and fire flow. 

These facilities are strategically placed within prime development areas consistent with intergovernmental and community planning study areas and agreements. Proactive rezoning through the BOCC in these areas has made the location more competitive when vying for targeted business and industry. 

The project is an important phase of the utility master plan that will also create some of the infrastructure to allow the sewer flow from Efland to be redirected to Mebane.