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Commissioners spar over revenue‑neutral calculation; proposal to cut next year's rate to return $2.7M draws heated debate
Summary
Commissioner Hood argued the county collected about $2.7 million more than it should have under an earlier revenue‑neutral pledge and proposed cutting next year's tax rate (about 7.48% or ~0.41 mills) to return funds; county staff explained statutory revenue‑neutral calculations and collection rates, and commissioners voted after extended debate.
A contentious discussion over whether Beaufort County collected more tax revenue than promised dominated a later portion of the meeting.
Commissioner Hood asserted the county was collecting roughly $2.7 million more than the revenue‑neutral commitment and proposed reducing the next fiscal year's tax rate to return that money to taxpayers (he cited a figure of about 7.48% or roughly $0.41 in the tax rate). Hood framed the move as honoring a promise that "we would not collect any more dollars in taxes this year than we collected last year."
County finance staff responded with a statutory explanation: the Local Government Commission formula for revenue neutrality accounts for valuation changes, an eight‑year growth averaging allowance, and an assumed collection percentage (staff cited a collection percentage of about 98.43%). Staff said the revenue‑neutral rate applies to total revenue across the county, not to individual taxpayers, and that the county was within 1% of its estimate on a roughly $42 million revenue line.
Other commissioners noted the political salience of the pledge and said they favored returning perceived overcollections to taxpayers; supporters moved to reduce the tax rate and presented a second in support. The transcript records a vote after extended debate; commissioners emphasized both statutory constraints and public expectations. The board discussed mechanics of reducing mills to return funds and requested accountants to compute exact millage adjustments.
Next steps: staff to provide precise millage calculations and, if the board directs, prepare the budget adjustment language for a future vote and public notice.
