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.