Elizabethtown discusses potential property tax increase

ELIZABETHTOWN, NC (WWAY) — Elizabethtown residents may see a potential property tax increase.

In a newsletter, the town manager notes that the coming fiscal year poses unique challenges as the town grapple with costs that have surpassed revenues, a trend that has persisted for several years.

“Despite our efforts to streamline processes, cut spending, reduce staff, and leverage technology to maintain our service levels, we find ourselves facing a budget shortfall that necessitates adjusting property taxes after not doing so for 27 years,” the town manager writes.

The recommended General Fund budget for FY 2024-2025 includes a modest increase in the tax rate to $0.645 per $100 of valuation, equating to a $0.03 cent increase per $100 of valuation.

“For example, if your home has an assessed value of $100,000, this would translate to an additional $2.50 per month or $30 annually,” the town manager writes.

The town is also adjusting rates on water and sewer services, partially due to the effects of inflation.

The town is also looking to eventually lower taxes, and plans to increase its tax base and foster job creation through the development of the Live Work Play campus in the industrial park and the establishment of a corporate airpark Construction on both projects is slated to commence this summer.

Those projects are largely funded through grants or earmarks, totaling over $50 million. “These funds are specifically allocated for their respective projects and cannot be redirected,” the town manager writes. “Moreover, these initiatives are poised to expand our tax revenue base, mitigating our budget shortfall in the long term.”