At their latest meeting, Morehead City Council approved the first reading of a real property tax rate increase. Officials said the rate is based on certified tax roll assessments provided by the state. This year, the rate that was used in 2023 would result in a projected revenue loss of more than $126,000 for the city.
In 2023, the real property tax rate was 0.41. If passed, the 2024 tax rate will increase to 0.452. The substitute tax rate is projected to result in the same amount of money collected as last year.
Lincoln Caudill and David Perkins are Morehead City Council members. They said properties move on and off the tax rolls all the time. When entities like churches and schools purchase taxable land, the city loses money.
“If any non-taxable entity buys a piece of property that was taxable, it comes off the tax rolls the next tax cycle,” said Perkins.
“Till they no longer own it. Now, of course, any properties owned by a non-taxable entity can be sold to a private entity, and then it's taxed again,” said Caudill.
Caudill added when making the budget, the city council did not know assessments would be lower than in previous years.
“In order to provide the same amount of services without making any cuts, we have to take the substituted compensating rate. Tonight, we're not asking for any more than that,” said Caudill.
Caudill recommended reaching out to him or other city council members with any questions or concerns regarding real property taxes.
A second reading must be approved before the increase is official. More information on the increase can be found here.