Dare County leaders set revenue-neutral tax rate as residents voice concern over reassessments

Dare County commissioners said the board intends to adopt a revenue-neutral property tax rate this budget cycle while residents at the meeting raised concerns about recent revaluations that increased individual tax bills.

The board’s chairman said the county aims to lower the county tax rate to offset higher assessed values so the county’s overall tax take will remain roughly the same; several residents said the increase will hit households hard and asked the county to reconsider the methodology or offer relief.

Chairman Woodard said the board conducted a lengthy budget workshop and is “committed to a revenue-neutral rate” and will not cut county services to accomplish that. He told the meeting the county’s proposed new rate would reduce the rate applied to assessed values from about 40.05 cents per $100 of value to about 26.32 cents per $100 so that county collections stay level despite higher assessments.

During public comment, Barry Sims of Collingwood said his reassessment would raise his tax burden and argued that the revaluation was “too much, too fast.” Mike Walton of Southern Shores said local increases varied widely by neighborhood, citing examples from his area with increases we recorded as 74% on average but individual parcels up to about 97.5%.

County Manager (name not specified at the meeting) responded during public comment that a revaluation reflects recent sale prices and that the tax rate is being lowered to reach revenue neutrality: “the mere fact that your value went up doesn't mean we're taxing you more. It just means your house is worth more money. We lower the rate so that we're not taxing you more.” He described the assessor’s process as using recorded recent transactions as comparable sales, then applying statutory appraisal formulas and adjustments for differences (pools, outbuildings, etc.). The manager also noted an appeal process is available through the board of equalization for taxpayers who believe their new value is incorrect.

The managers’ remarks reiterated the distinction between county rates and municipal rates: homeowners in one of Dare County’s six towns may face separate municipal tax changes and were urged to address town councils directly about municipal levies.

No formal vote on the tax rate occurred at the meeting; commissioners said the revenue-neutral figure is in the budget drafts and will be part of upcoming budget adoption deliberations.

Residents wanting to challenge their valuation were directed to the county’s appeals process and the board of equalization.