{"id":225,"date":"2026-05-27T15:05:45","date_gmt":"2026-05-27T15:05:45","guid":{"rendered":"https:\/\/northcarolinamovingjournal.com\/?p=225"},"modified":"2026-05-27T15:05:45","modified_gmt":"2026-05-27T15:05:45","slug":"property-tax-levy-limit-could-devastate-budgets-of-ncs-small-counties-county-manager-says","status":"publish","type":"post","link":"https:\/\/northcarolinamovingjournal.com\/?p=225","title":{"rendered":"Property tax levy limit could devastate budgets of NC\u2019s small counties, county manager says"},"content":{"rendered":"
\n

Tyrrell County Manager David Clegg watched closely last week as lawmakers debated the merit of a <\/span> to limit the rate at which local governments\u2019 can increase property taxes. Clegg says voter approval of a levy limit will rob the tiny, rural county of 3,000 residents of desperately needed tax revenue.\u00a0<\/span><\/p>\n

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With a budget of approximately $10 million a year, the county runs on one of the smallest county budgets in North Carolina. It\u2019s a fraction of the billion dollar-plus budgets taxpayers help fund in large, urban counties.<\/span><\/p>\n

\u201cTyrrell County is providing the baseline human services and quality of life services that just keep us going,\u201d Clegg said. \u201cIf you start cutting at that all of a sudden, you\u2019re cutting social services, law enforcement, health, emergency medicine because there\u2019s nothing else to cut.\u201d<\/span><\/p>\n

Clegg said the county doesn\u2019t have an airport, convention center or recreation center, so when you take a scalpel to Tyrrell County\u2019s budget, \u201cYou\u2019re cutting flesh, you\u2019re not trimming hair.\u201d\u00a0<\/span><\/p>\n

The N.C. Housing Coalition, a Durham-based housing advocacy group, estimates that a strict levy limit could cost Tyrrell County about 11% of its annual budget while only saving the average taxpayer about $120 a year.\u00a0<\/span><\/p>\n

The lost tax revenue would amount to a little more than $1 million, which Clegg says would be devastating for a county that\u2019s already struggling to make ends meet and one that must share the cost of some essential services with neighboring counties.<\/span><\/p>\n

\u201cI\u2019m trying to run a paramedic level EMS service with Washington County and because there\u2019s no hospital anywhere close, you have to take people to Greenville or take them to Washington [NC] or Edenton, (and) that costs nearly a million dollars,\u201d Clegg said.<\/span><\/p>\n

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If you start cutting at that all of a sudden, you’re cutting social services, law enforcement, health, emergency medicine because there\u2019s nothing else to cut.<\/p>\n<\/div>\n

\n

\u2013 Tyrrell County Manager David Clegg<\/b><\/p>\n<\/div>\n<\/div>\n

Clegg says he spends lots of work hours chasing grant dollars to help pay for county capital projects. In the 13 years that he\u2019s served as county manager and county attorney, Clegg said he\u2019s managed to land more than $100 million in grants.<\/span><\/p>\n

\u201cIt\u2019s a struggle every day,\u201d he said. \u201cThe county basically lives on a very active grant search to fund projects. There is no way the county could possibly issue bonds for anything. There\u2019s simply no tax base there to do it with.\u201d<\/span><\/p>\n

Clegg explained that nearly half of the land in the environmentally sensitive county defined by pocosin wetlands is owned by federal and state governments and therefore exempt from property taxes. And predominant land uses \u2014 agriculture and forestry \u2014 are taxed at lower rates than residential or other commercial properties.\u00a0<\/span><\/p>\n

\u201cIt\u2019s the only place in the world where red wolves run free and it\u2019s an important environmental jewel and so it presents a unique set of challenges to our government when you have a state government that views Tyrrell in the same lens as Wake and expects me to do the same thing as Wake County does,\u201d Clegg said.<\/span><\/p>\n

Hudson Vaughan, director of the Community Justice Collaborative at the housing coalition, said a $120 in property tax savings for homeowners would be a \u201cpretty substantial tradeoff\u201d if Tyrrell County lost nearly 11% of its property tax revenue under a levy limit.<\/span><\/p>\n

\u201cI think that\u2019s where [rural counties] would see the most devastating impact because they have the least ability to make up for that loss,\u201d Vaughan said. \u201cBigger counties, a lot of them would be forced into adopting fees and other things but they can make up for that in some form or fashion.\u201d<\/span><\/p>\n

In Winston-Salem, a strict levy limit would have saved a homeowner paying $3,000 in property taxes just over $200, according to the coalition\u2019s analysis. Meanwhile, it would have cost Winston-Salem and Forsyth County more than $45 million in property tax revenue, it said.<\/span><\/p>\n

And in downtown Raleigh, an apartment complex would have seen its tax bill reduced by $125,000 under a levy limit, while a property owner with a $2,000 bill would have only seen it drop by $175, the housing coalition said.<\/span><\/p>\n

\u201cWhat we\u2019re seeing is that actually, the huge landowners and luxury apartments will be the ones who will get the biggest benefit from this,\u201d Vaughan said.<\/span><\/p>\n

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Alternative solutions<\/h4>\n

The housing coalition\u2019s leaders say the property tax dilemma is best solved by expanding the state\u2019s property tax relief programs \u2014 particularly the Homestead Exclusion and Circuit Breaker programs for elderly and permanently disabled homeowners. The age-and income-based programs reduce or delay property taxes for homeowners on fixed incomes.<\/span><\/p>\n

Improving the two programs would help more North Carolinians facing property tax burdens without undermining property tax revenue, especially in low-wealth counties, the coalition said. The coalition shared its concerns and recommended solutions in a paper titled \u201c<\/span>Meaningful Property Tax Reform & Relief in NC<\/span>.\u201d<\/span><\/p>\n

Political motivations or much needed relief?<\/h4>\n

Clegg and Vaughan both said the amendment was politically motivated.<\/span><\/p>\n

\u201cIt\u2019s a way to get people to the polls, I think,\u201d Clegg said, noting that state law already prohibits counties from setting a tax rate of more than $1.50 per $100 of property valuation.<\/span><\/p>\n

But Republican lawmakers in the House and Senate, who voted overwhelmingly to put the amendment before voters, contend it is a response to taxpayers\u2019 complaints about rising county and municipal property taxes, which they say can push taxpayers, seniors in particular, out of their homes.<\/span><\/p>\n

\u201cFor years we\u2019ve seen some municipal and county governments impose exorbitant tax rates on their residents with little to no regard for fiscal restraint,\u201d Sen. Tim Moffitt (R-Henderson), said in a statement.<\/span><\/p>\n

Moffitt\u2019s remarks parrot those of House Speaker Destin Hall (R-Caldwell) and Senate leader Phil Berger (R-Rockingham). Both GOP leaders formed committees to examine rising property taxes. Hall and Berger contend the state\u2019s rising property taxes are due to overspending by local governments.<\/span><\/p>\n

\u201cFamilies are getting ripped off as some, but by no means all, local governments rake in billions more than inflation and population growth warrant,\u201d Hall said in a recent press release.<\/span><\/p>\n

Sen. Dan Blue (D-Wake) was the lone Democrat to vote in favor of placing the amendment on the ballot, citing concerns about gentrification in downtown Raleigh. Blue told reporters that rising property values and tax increases are putting financial pressure on longtime residents who are now paying high taxes on homes they\u2019ve lived in for decades.\u00a0\u00a0<\/span><\/p>\n

\u201cThis doesn\u2019t give us any power we don\u2019t already have,\u201d Blue told <\/span>NC Newsline<\/span>. \u201cIt doesn\u2019t do anything specifically, except to say, \u2018We\u2019ll do our job.\u2019 And our job ought to be how to figure out how to solve these problems on affordability, because that\u2019s really what it\u2019s all about.\u201d<\/span><\/p>\n

Blue\u2019s Democratic colleagues have argued that the current property tax crisis is due to the General Assembly\u2019s chronic underfunding of local governments.\u00a0<\/span><\/p>\n

\u201cThey\u2019ve [GOP lawmakers] underfunded our schools, our emergency management divisions, our court systems and our district attorneys,\u201d said Rep. Eric Ager (D-Buncombe). \u201cAdditionally, we\u2019ve continued to pass unfunded mandates, costs that our local governments are forced to fund. They don\u2019t have a choice.\u201d<\/span><\/p>\n

Lawmakers and advocates on both sides on the issue agree that it won\u2019t be hard to sell North Carolina taxpayers on the idea of lowering property taxes.<\/span><\/p>\n

Rep. Julia Howard (R-Davie), who co-chairs Hall\u2019s property tax committee, told colleagues in March that she is certain that a constitutional amendment would pass if placed on the ballot because North Carolinians are \u201cvery concerned about their property tax.\u201d<\/span><\/p>\n

Vaughan said Howard is probably right but believes taxpayers might vote differently if given all of the facts.<\/span><\/p>\n

\u201cI think that if people were aware of what it really does, then I think that the average voter would vote against it,\u201d Vaughan said. \u201cIf we look at bond years where people are voting to increase their taxes a little bit to get a big return\u00a0 collectively for services that they want \u2026 those bonds almost always pass in North Carolina.\u201d<\/span><\/p>\n

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Tyrrell County Manager David Clegg says a constitutional amendment to limit property taxes would devastate his and other rural NC counties.<\/p>\n","protected":false},"author":1,"featured_media":224,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-225","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interesting"],"yoast_head":"\nProperty tax levy limit could devastate budgets of NC\u2019s small counties, county manager says - North Carolina Moving Journal<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/northcarolinamovingjournal.com\/?p=225\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Property tax levy limit could devastate budgets of NC\u2019s small counties, county manager says - 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