THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Tuesday, January 17, 1995 TAG: 9501170315
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: BY PAUL SOUTH, STAFF WRITER
DATELINE: OCRACOKE ISLAND LENGTH: Long : 104 lines
About 150 residents of this Hyde County island gave legislators a suitcase full of suggestions to take back to Raleigh in an effort to find a remedy for skyrocketing property taxes.
State Senate President Pro Tem Marc Basnight, D-Dare, told a large crowd at Ocracoke School that he would establish a commission to study possible solutions for property owners. Their taxes have in some instances doubled or tripled after a recent reassessment of property values. Ocracoke residents now pay $1.05 per $100 in property value, up from 80 cents in 1986.
Ideas ranging from a transfer tax on real estate transactions to outright secession from Hyde County were suggested to the Hyde County Commission, Basnight and state Rep. Zeno Edwards, R-Beaufort.
In the past eight years, property values on this Atlantic island have almost quadrupled, according to Robert Pearson, who contracted with Hyde County to handle the reassessment. However, there was little increase in value on the Hyde County mainland.
``Property values on the mainland have changed just a little,'' said Pearson. ``But on Ocracoke, vacant lots that sold for $12,000 eight years ago are now valued at $45,000. Even if the property taxes are reduced, people on Ocracoke will still pay more than people on the mainland because of the value of raw land.''
Bill Connally of the State Revenue Commission said that in his 20 years in the department he has not seen such a major shift in property taxes. If the higher taxes remain in effect, 750 permanent Ocracoke residents would bear 43 percent of the tax burden for a county of 5,411.
Many in the crowd said that a way of life on the island would die without the General Assembly's help.
``People who were born and raised here are going to have to sell out because they can't pay the property taxes, and everything will be a big monopoly in 10 to 15 years,'' one man said. ``It has nothing to do with the law or anything else. It has to do with people.''
Several in the audience asked about a change in the way the state handles property valuation. However, Basnight said that under state law, any changes in the state constitution would have to be approved by the General Assembly.
``Any change that we would make (in property taxes) would have to be approved by all 100 counties,'' Basnight said. ``I don't expect that the county commissions or Wake or Mecklenburg counties would be in favor of anything like that.''
Hyde County commissioners have asked for a homestead exemption for property owners. Basnight has said he expects legislation to be introduced that would change the North Carolina Constitution. Some Ocracoke residents have called for elderly residents on fixed incomes to be exempt from paying property taxes.
One resident suggested an increased transfer tax on real property transactions. Basnight said a change in county transfer taxes could be passed as local legislation rather than as a constitutional amendment.
Another resident asked for increases in the amount paid by federal agencies - specifically the National Park Service and the U.S. Fish and Wildlife Service - that own large tracts of land in Hyde County. In lieu of taxes, the Park Service pays $1,297 annually on the prime real estate it owns as part of the Cape Hatteras National Seashore. The property is appraised at $179 million, according to County Manager Angie Tooley.
The secession issue came up briefly during the two-hour hearing. One resident asked about the process needed to enter neighboring Dare County. Many residents have expressed an interest in joining the northern neighbor.
``In Hyde County, Ocracoke is the rich brother,'' he said. ``In Dare County, Ocracoke would be the poor brother. Our taxes would be much lower compared to how they are now.''
Basnight said that while he would not completely ``close the door'' on the idea, neither the Dare nor Hyde County commissions supported it.
``It would be a great benefit to Ocracoke, but it would be a great loss to Hyde County,'' he said.
Residents also asked about a possible toll on the Hatteras-Ocracoke Ferry. However, under state law, any tolls collected would have to go to the North Carolina Department of Transportation.
Edwards, the Beaufort lawmaker, said that while he supported finding a solution to the problem on Ocracoke, he did not favor a transfer tax increase.
``I'm not for a transfer tax, simply because it is a new tax, even though at the request of the commission I have sponsored it in the past,'' Edwards said.
Rep. Gene Rogers, D-Williamston, said Democrats may be unwilling to support any kind of transfer tax increase.
``I will support anything they come up with that will make this fair and equitable,'' said Rogers, an Ocracoke property owner. ``I'll work for it, too. But there are a lot of Democrats who got burned because of the tax issue last November who might be reluctant to support it.''
But one member of the audience said the issue transcends politics.
``I don't know the law. I don't know dollars and cents,'' she said. ``But a lot of us have children who won't be able to afford to buy a piece of property here. Even if we left the property we have to them, we're afraid we'd be leaving them a burden.'' ILLUSTRATION: [Color Photo]
DREW C. WILSON/Staff
Ocracoke resident Keith Lowe was among about 150 residents who met
at Ocracoke School Monday to protest soaring property taxes. Their
taxes have in some instances doubled or tripled after a recent
reassessment of property values. Ocracoke residents now pay $1.05
per $100 in property value, up from 80 cents in 1986.
by CNB