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Editor’s forum: Get ready to open your checkbook
The annual round robin of second guessing over tax increases is over, and four of Dare County’s six towns have raised their rates 2 cents.
Some argue that that 2 cents per $100 of value is just $60 a year on a $300,000 house. But add that to increases in electric rates, water rates, health-care costs, groceries and gas and the coins begin to pile up.
In the past, I’ve been ready to accept a modest increase if the reasons were well explained, it would avert laying off people who are doing a good job and it didn’t become a habit.
Even in Nags Head, where I live, I talked myself out of getting too worked up over a tax increase last year to help pay for pumping sand onto the beach. But the indirect economic benefit to people like me with no property on the oceanfront is so indirect I haven’t noticed it yet.
This year, I’m trying not to get too worked up over the hiring of an employee in a brand new, high-level position with responsibilities I can’t quite put my finger on. Apparently my tax increase left enough spare change to spend on something other than sand.
Other towns cited last year’s tax increase in Nags Head of 2 cents for everybody and another 16 cents along the oceanfront as one reason for upping their rates this year.
Distribution of county land transfer, sales and occupancy tax revenues are based on town property tax collections. So the more one town taxes, the bigger a share it gets — at the expense of the other towns that depend on that money to balance their budgets.
That sets off a chain reaction of tax increases as towns try to recoup the money they lost from another town’s tax increase. So now people in other towns feel like they are subsidizing Nags Head’s “go it alone” beach nourishment project. This year, rates in Kill Devil Hills, Kitty Hawk, Southern Shores and Manteo went up 2 cents.
Next year’s revaluation might end up as a blessing in disguise for elected officials, who have pretty much tapped out the it’s-the-other-town’s-fault excuse.
When oceanfront properties are hugely devalued, they no longer will subsidize westside properties, where most of the voters live. That presents a new political problem, but also a new excuse.
Values overall are expected to decline an average of 30 percent, so towns and counties will be obliged to use a revenue-neutral tax rate as a starting point on their budgets. That is the theoretical rate that would generate the same amount of revenue on properties that overall have lost value.
Rates will be higher, but some people will actually pay less — mainly on the oceanfront — and others will pay more — mainly on the west side. Get ready for the pitch that the higher rate doesn’t necessarily mean you’ll be paying more. Or that it’s no one’s fault that the national economy sent property values in decline.
Unless you’re willing to sit down with a calculator, you really won’t know anything for sure until you get your tax bill. By then it will be too late to protest and elected officials will be off the hook. The whole thing will be so confusing that no one will know what to protest even if they wanted to.
That still leaves the weird method of distributing county tax revenues.
Some argue that asking the General Assembly for a change would invite lawmakers to eliminate the occupancy tax — at best a weak counterpoint since that would alienate most of the counties in the state.
A lot of public officials complain about the formula, but no one has made the slightest attempt to change it.
Maybe it’s still too convenient an excuse for raising our taxes.
See what people are saying:
Join the discussion:
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Ems family says:
Try paying for everything that is going up in price. When our paychecks went down 11%
Dare to go broke says:
Yay, and the jobs posted in the area only 7.75 to 10.00 an hour, even those calling for a college degree only offer 13.00 the most. It’s starting to look like it will be nicer to visit then live here.
obxdad says:
If you think Nags Head is bad, just take a look at the proposed salaries for Duck. The town manager is going to be paid nearly TWICE what the other town managers make, in a far smaller town. They want to add another police officer, while they are overstaffed as it is considering the number of calls they get.
With 5 properties, I pay nearly $10,000 a year to Dare County and the towns. And it’s just going to keep going up if we don’t do something to keep these towns from one upping each other.
You guys really should do a series on town salaries and positions needed vs. those that exist. If they keep adding to the full time planning staffs, we will be buried in B.S. regulations that change with the wind.
Nickrite says:
Oh sure, you moan, I moan but what do we do about it at election time? Nothing! Most of the population can’t be bothered to even vote. Those that do choose from the pool of self serving professional volunteers or comfy local government pensioners.
It’s past time for change but, who’s even listening.
KDH Rezident Evil says:
The local area government provide a high level of service to locals and visitors. If you want to start laying off people, fine. Just know what you’re getting into before that starts happening. Do a search of other, larger municipalities who’ve faced budget cuts and corresponding cutbacks in services. Examples:
From a USA Today article:
“In Tulsa, which lost 110 officers to layoffs and retirements, the 739-officer department isn’t sending cops to the scene of larceny, fraud and car theft.”
“In the Boston suburb of Norton, police told residents there may be delays or no response at all to some calls, including vandalism. The department posted the new policy on its website.”
In San Jose:
“Fewer code enforcement officers resulted in policy shift in response to neighborhood complaints. Field inspectors will respond to emergency complaints that create a threat to life or property, for example, substandard housing or an unguarded vacant building. For other complaints, property owners will receive a warning letter and a postcard to return to the city after the problem has been fixed. Field inspectors could be assigned to visit the site if the problem isn’t fixed.”
In Cleveland:
Here are the public services that will be affected by the cuts:
- Waste collection: Trash will still be collected weekly, but collection will be delayed during the day
- Waste collection: Bulk item pick up will be delayed from same-day to 3 to 4 days
- Waste collection: Delays in dead animal collection, public receptacle service downtown and in neighborhoods, special event cleanup, recycling drop-off location service
- Streets: Scaled back maintenance of crack sealing program
- Public works: Reduction in 2nd shift emergency traffic light repairs
- Public works: Street painting will be delayed by two months
- Public works: Fewer trees will be trimmed at parks, delayed response to storm damage
(Partial list; a bunch of stuff like snow removal and things that don’t apply here removed for brevity.)
So by all means, makes sure we’re getting what we’ve paid for, but then also make sure we know what we’ll be missing if we don’t.
Ready to Move! says:
I have lived here for 20 years and as soon as I can, I’m outta here! I’ll keep my house in Kill Devil Hills and try to find a year round tenant to help pay my mortgage (since I’ll more than likely lose money if I try to sell it). I’m relatively young, college educated, have a great job, great wife and kid, but the price of everything, including groceries and most importantly daycare, is ridiculous. My wife and I are willing to spend the extra time to drive to VA or Raleigh to buy staple items in bulk, just so we don’t have to pay the ‘tourist’ prices. I love the beach, but I can’t take it anymore.
Matt says:
A push for the consolidation of as many services between the County and Towns is the answer.
If it works for Manhattan’s five (5) boroughs – it just might work here?
Master SGT OBX says:
But we must keep supporting “our job creators”–what a crock!
junkman says:
This guy got it right here. Taxes increases are an aggravation, but the more significant rises are in utilities, healthcare and food – not taxes. So with all the complaining about taxes, who’s on the utility companies, insurance companies, and agribusiness companies ? Sound like a right wing corporate play to deflect the focus away from their industries and on to big gub’ment….and we’re letting them get away with it.
teedoff says:
take a gander on what our Dare county commissioners get paid…Cut their salaryand expense accounts. (Especially their trips to DC.
Bill Pitt says:
Think that pretty much every board/commission that raised their rates has at least one member looking ahead to next year. When the new appraisals come out they’ll be looking at what has happened to the spread between ocean front and west side values in their town. Where it proportionately increases a lot, that commission may be forced to set a new rate BELOW the revenue neutral rate. Since shares of shared revenue depend on last years ratio of the levies (not the current year ratio)they’ll need the additional shared revenue resulting from this year’s ratio to make up for the next year’s possible reduction in levy. By and large, these folks work pretty hard to minimize the impact of taxes on their constituents. Give them a bit of a break.
James says:
Junkman has got it right, it’s not the taxes in our area that are the problem. If you have lived elsewhere you know how much higher taxes can be. We should all be getting together and arguing against utilities going up. There is an upcoming meeting about Dominion Power, we will see how many people show up. My guess the crowd will be small which will show that most just like to complain, instead of trying to do something about it.
Chuck Ball says:
‘Revenue neutral’ makes the assumption that town or county budgets should always increase or remain the same. If you have less revenue (income) in your house, do you spend more?
Jackie Harris says:
Something being left out is the amount of money in the fund balance of each town!. Would like to see the VOICE do an detail article about what each town/county has and what is required by the state???/. The Tax rate could come down! The excuse for keeping so much is “In case of emergency/disaster it will take to long to get the money from FEMA”
Frank Moore says:
In Kill Devil Hills we hire a seinor planner for a position that must be hard to explain with a straight face, but allow one police officer to take a higher paying part time job elsewhere at the worst time of the year but continue to hold it for his return, whenever that will be, his call or Britt’s and Britt has also fired two patrol officers and demoted another. Explain the budget again, town leaders !!
chuck says:
Just a little food for thought. I haven’t seen (or I missed it) anyone addressing the practically 20% rate increase we are looking at from Dominion Power. That actually means more to me financially than the property tax increase.
Ekim says:
I will do everything I can to make it look like I make less, More CASH jobs! WE DO NOT NEED A TAX HIKE,& and it sounds like we’re just gona sit here an take it Im not! I urge all self employed to do the same.
Dare county family says:
There needs to be perks for living here. Ok you raise all the prices for people on vac not fair to us locals. We should get normal prices. It makes it to hard to live here. As far as fighting the electric comp. it is already a done deal nothing we do or say is going to change it. We learn that at the council meetings. The people in charge of This county don’t care about us. They care about there pockets and keeping the visitors happy. Guess what. With it getting to expensive to live here. Who is going to take care of there visitors? It is time to worry about locals too.
Ekim says:
To those bustin Dominion Power, OPEN YOUR WINDOWS, BUY A WOOD BURNER!
Outerbanxer says:
Chuck, the answer is to stop using power….by petitioning piedmont natural gas to hook up residential accounts down the bypass and beach roads. Natgas is unbelievably cheap right now.
chris says:
I agree with Ready to Move. The cost of living here is ridiculous. Homeowners insurance is 5 times more expensive here than in inland NC, gas, groceries and everything else is also more expensive. Even consider yor vehicles, you have to replace your car more frequently due to the salt. Homes require more basic maintenance than those of inland areas. If I didn’t have a house, I would be gone already. As far as my job goes here, I would be making around $7,000 more a year somewhere else. The politicians around here care nothing about average people. They just want to retain their places so they can pass rules that benefit their businesses.
vanative says:
…just wondering…how about letting each policial subdivision charge/collect their own tax…instead of putting it in a pot that rewards the district with the highest tax…believe me…the tax rate would drop dramatically…just wondering………
South of John's Ditch says:
Well I guess the one constant is the guys that raise the taxes on folks this year will not be there after the next election.
kdh resident says:
I have lost most all my benefits, those I have not lost cost me more each year. Gas, food, tax, insurance, cars, college, clothes etc. etc. continue to rise in cost. Yet I have not gotten a COLA raise in four years. Dear politicians COLA = COST OF LIVING! Sorry didn’t mean to confuse you, I’ll explain. This, the COLA, is a small 2, 3 or 4% raise employees receive to offset annual rise in cost of lifes necessities. Milk went up almost $2 a gallon in the last four years, gas has almost doubled and now is down due to upcoming election but is still higher than four years ago. College tuition has risen 14% since 2008. Utilities cost up, insurance rates up, taxes up, get the picture?????
In years past most went to work for counties and towns for the time and a half over time, health insurance, COLA, longevity, merits, career developement. These jobs paid less but the benefits and retirement made it worth it.
What happens when you take all of those benefits away? I have only one of those left. When the economy turns around they will be quick to start returning the benefits to retain employees. I wonder if the employees will remember their employers squandering moneys on raises for themselves, creating unneeded jobs, $12,000 Christams decorations and offroad vehicles?
Nags Header says:
And one can’t even get a town trash can replaced that has been split open multiple times by the town trash trucks for over 10 years in the town of Nags Head without having to buy it out of pocket. I think we were quoted $80.
Even after diligently paying these increasing property taxes for decades.
We refuse to do it on principle. Things like that are what our taxes are supposed to be for.
Maybe they’ll hire more government employees to come & pick up all the trash that blows all over the neighborhoods from the critters dragging it out of said split containers.:/
Ekim says:
We must all come together an kill this beast KNOW, LETS start with TOLLBOOTHS on both bridges, It will not stop the tourons!!
chris says:
How about everyone vote against an incumbent this November. Take a look around you, are you really satisfied with how the town and counties are being run? We all have a choice when we go into the voting booth. It can be business as usual, or hopefully a positive change, not like Obama change.
Watchdog says:
They are all trying to game the system and preserve expendures rather then face the difficult choice of eliminating unnecessary duplications, particularly in personnel, and reduce expenditures. No its not easy to tell someone their job is going to be elliminated. But that is one of the responsibilities of leaders. Much easier to blame they system, raise the rate, and hire another entrenched unnecessary staffer. They refuse to do so in Kill Devil Hills and Nags Head, and the money they pay public employess in Duck is an abuse of their taxpayers. They got a good thing going there, none of their taxpayers actually live there. There have been some attempts to control spending,but in most the local towns the voters stay home and you reap what you sew, in this case money out of your pocket.
Learn the rules to play the game! says:
You need to check with your town commissioners. Sheila Davies, Mayor of KDH, is talking with the different towns to ban together to try and negotiate down the 20% hike in power cost Dominion is trying to pass.
Bill Pitt is right on. With the new home values being appraised next year will effect every towns budget. To raise taxes now could be a huge buffer to what might have to be done next year if nothing is done.
It is not easy to understand, but instead of biotching about town budgets, you need to understand how the whole county and town tax revenue works. Is the system perfect, far from it. But you work with what you have until the county wants to change it!
Local says:
…all the money isn’t being spent in Nags Head. South Nags Head is a disgrace. Grass up to your knees, trash blowing everywhere! Nasty, contaminated water when there is rain. I’m almost ashamed to live there.