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OPINION: When Property Values Go Up, Tax Rates Must Go Down

By Dane Scalise, posted Feb 24, 2025
Dane Scalise
At the end of February, most property owners in New Hanover County will receive notices that the tax value of their real property has significantly increased. Some residential and commercial properties will double or even triple in value. Counties across North Carolina are required to perform these property revaluations at least every eight years. New Hanover County chooses to do so every four years in an effort to minimize “sticker shock.” Sometimes, however, the invisible hand of the market has different plans.

Here’s the simple reality: if the current property tax rate (45 cents per $100 valuation) remains unchanged, these upward swings in property valuations would result in a huge tax bill increase for you and gobs more revenue for the government – perhaps $150 million or more. It is said that higher costs of doing the government’s business (mostly due to inflation since 2021) means that the County government needs more revenue to function as usual. There is some truth to that, but do you know who needs your money even more? You.

Budgets should serve first and foremost the taxpayer. Taxes should be levied sparingly and spent judiciously. The growing concerns of the public over these increased property valuations demand a response from those of us making these decisions. Inspired by the input I have received through conversations with New Hanover County citizens, here are the priorities I will be pursuing during our County’s upcoming budget cycle:

1. Massively Lower the Tax Rate. My position is straightforward: if property values are going way up, then the tax rate should go way down. It is good that our homes are worth more, but that is no excuse for the government to pick your pocket. We must lower the property tax rate in a meaningful way to minimize the impact that these increases will have on your tax bill.

2. Cut Wasteful Spending. We have too much money going to the wrong things. In an annual budget of over half a billion dollars, there is plenty of room for optimization. As always, my focus is and remains on exclusively funding core services.

Cut the DEI Department. I strongly believe in fairness and equality for all citizens, but I do not believe that the DEI department is the proper mechanism for achieving that critical goal. I will continue to advocate for this change as long as DEI initiatives put our County at risk of legal liability and losing federal and state funding.

Cut Government Operational Expenses. Our County government can and should be leaner. We need to take a renewed look at all County departments, particularly those that are administrative in nature, to determine where we are top-heavy and/or inefficient. I would gladly welcome the opportunity to hire an experienced third-party to perform an audit of County functions and operations.

Cut Non-County Agency Funding. We have many fantastic local nonprofits and other private organizations, but there is an inherent issue when the government picks and chooses which of these non-government entities will receive taxpayer dollars and, by extension, which will not. I believe that the Endowment created from the sale of the hospital is a more appropriate source for this funding. Furthermore, if we return more money to our citizens, they can choose to be more charitable individually or through their businesses.

3. Increase Funding for Core Services. Your tax dollars should be spent only on the most worthwhile, critical government services.

Increase Funding for Students and Teachers. Last year, despite numerous budgetary challenges, the County budget provided the largest amount of money it ever has for our school system. This year, I want to do even more, including more pay for teachers and more funding for Cape Fear Community College.

Increase Funding for Veteran Services. Federal and state services often shortchange our veterans. The least we can do at the County level is ensure that the 15,000 veterans living in New Hanover County receive the best customer service we can offer.

Increase Funding for Law Enforcement and First Responders. There should never be any doubt that those on the front lines of public safety have the resources they need to keep us safe.

Increase Funding for Senior Resources. Those on fixed incomes are especially vulnerable to tax hikes. We can’t leave them behind.

Increase Funding for Sustainability Measures. Now – right now – is the time to invest in thoughtful planning for our future. That means more investing in greenspace and adaptive reuse. Current and future generations need us to be very thoughtful and deliberate about how we approach this important issue.

These priorities will be my guide during this budget cycle as we negotiate and decide on a tax rate that will meet the County’s true revenue needs, accounting for inflation. While I am only one of five County Commissioners, I will never stop using my voice – and vote – to advocate for what I believe is in the best interest of those I represent.

Attorney and insurance broker Dane Scalise is a member of the New Hanover County Board of Commissioners. 
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