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Officials say county—ollection fee hike could cost Whiteville tens of thousands; staff seeking alternatives
Summary
Town staff told the council that a county change in the property-tax collection fee from 3% to 4% would substantially increase collection costs and that the town is exploring alternatives after county commissioners pressed municipalities to renegotiate terms.
Town staff reported that recent changes to the county property-tax collection arrangement — including an increase in the collection fee from 3% to 4% — could materially affect Whiteville's revenues and that staff are working on alternatives.
A staff member told the council the county commission asked municipalities to return to the table to renegotiate collection terms. The staff presentation noted that property taxes represent about 40% of the town's general fund revenue and described an example in which the town's collection fee had risen: the fee the town had been paying previously was about $13,000; under the 4% fee the staff estimated the charge could rise to about $120,000.
The staff member used a large commercial property as an example: the transcript records that the property generated roughly $75,000 in property tax last year and, under the increased fee, the town's net from that account would be reduced by about $23,000, according to the staff remarks.
Council members did not take a formal vote at the meeting; staff said they were evaluating options and preparing alternatives to respond to the fee change and its budgetary impact.
The meeting record does not include the county's explanation for the fee increase or final contract terms; the council discussion was confined to staff briefings and preliminary planning.
