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Hendersonville committee presses county over disputed Adequate Facilities Tax demands
Summary
City staff told the finance committee that a county law director’s letter expanded AFT collection to some commercial projects; staff found errors and duplicates in the county’s list, the city will continue to reconcile records and facilitate developer meetings, and legal counsel said the city likely is not liable for the county’s claimed unpaid AFTs.
The Hendersonville Finance Committee on April 28 heard a detailed update from city staff and counsel about a county demand for unpaid Adequate Facilities Tax (AFT) on commercial development after the county’s law director issued a letter expanding the county’s interpretation of what projects are subject to the charge.
City codes director Greg Story told the committee the city first learned of the county’s change when he received a later letter in April saying the county expected the city to direct commercial applicants to pay the county’s AFT; Story said the city began directing applicants to the county on April 25 and has required applicants to provide county receipts before issuing permits. “We were going to send people to the county to pay the tax. And that’s what we do,” Story…
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