May 25, 2013
Resident's in the small town of Alliance in Pamlico County don't have to pay property taxes, but that may all soon change.
The town of Alliance has 800 residents and a total property value of 46-million-dollars, according to Mayor Ed Riggs,
The mayor and four other commissioners have voted for a five-cent property tax on every $100.00 in property for residents in order for the town to avoid a deficit.
Years ago the town received more than $600,000 through a franchise tax and that has grown through the years thanks to interest.
Tough economic times have meant that interest has dropped by some $20,000 a year, forcing the town to run a deficit of $37,000.
Riggs says the property tax would allow the town to correct the deficit without dipping into the franchise money. "The town is missing out on a few thousand dollars each year from sales tax. You don't get sales tax reimbursements unless you have a property tax, so all the other towns around us are getting sales tax money because they have a property tax."
This extra revenue for the town will generate $26,000 a year for Alliance.
There will be a public hearing on the proposed tax this June before the new budget is adopted.
