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Tax

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1. When will I receive a bill for my real estate taxes?

Tax notices (bills) are mailed in August each year and are due on September 1st but payable until January 5th (the next business day if the 5th falls on a weekend) of the next year to avoid legal action. Partial payments are accepted prior to the delinquent date. Interest begins January 5th at a rate of 2% and increases by 3/4% each month thereafter. Delinquent taxes are subject to immediate garnishment, foreclosure, or seizure of property. Unpaid taxes are advertised between the months of March and April.

2. Where can I pay my taxes?

The most convenient way to pay your taxes is by mail. You can send your payments to the post office box in Charlotte which is on the bill you receive in the mail, or mail them directly New Hanover County Tax Office, P.O. Box 18000, Wilmington, NC. 28406. You may also pay your bills in person at or office located at  230 Government Center Drive, Wilmington, NC 28403 between the hours of 8:00 am and 5 pm. Monday through Friday.

3. How Are Taxes Determined?

The responsibility of the Tax Department is to value all taxable property in the county. The total value of all the property in the county is called the tax base. Each county agency and/or department submits an annual operating budget to our County Budget Department. This information is forwarded to the County Manager who submits a recommended total budget to the County Commissioners for their consideration. The Board of Commissioners, along with the Budget Department and the County Manager, review the budget and the tax base to determine a recommended tax rate. This is also done to establish a fire district tax. Of course, this process is not as simple as it sounds, many hours are spent analyzing the departmental budgets, county programs, and outside agencies to arrive at a budget that will provide services to the citizens of New Hanover County.

Each municipality completes a similar process. The whole process is usually completed by the end of June and the county commissioners and town boards establish new tax rates by July 1. Once the tax rates are established, taxpayers receive a consolidated tax bill, usually in August, which includes their county and fire district tax if their taxable property is only within the county boundaries, or their county and municipality taxes which are the City of Wilmington, Kure Beach, Carolina Beach, and Wrightsville Beach, depending on the location of the property.

4. What Is Taxable Property?

Personal Property

Personal property includes motor vehicles, boats, campers, trailers, single-wide mobile homes and double-wide mobile homes with the moving hitch, wheels, and axle attached, and airplanes. Anyone who owns any of these items on January 1, (excluding licensed motor vehicles) must list them with the Tax Department during the month of January each year. If a property tax listing form, also known as an abstract of taxable property, is not received in the mail, please call our office at 910-798-7300 to request one. A 10% late listing penalty will be charged for anyone not listing their required property with the Tax Department before the January 31st deadline. If January 31st falls on a weekend the next business day will be the deadline.

Licensed Motor Vehicles

Licensed motor vehicles and trailers are listed automatically when you first register or renew your motor vehicle or trailer registration through the North Carolina Department of Motor Vehicles (DMV).

Business Personal Property

Business personal property includes machinery, computer/office equipment, airplanes, unlicensed vehicles, leasehold improvements, leased equipment, supplies, furniture, fixtures, farm equipment, etc. which are used for a business. Listings must be submitted during the month of January to avoid a 10% late listing penalty. However, an extension can be granted until March 15, if the request is made in writing and is postmarked or hand delivered to the Tax Department by January 31st or if January 31st falls on a weekend the first business day following the 31st. Business property statements are mailed to all business' who listed the previous year or for anyone who has requested a form. If you have business personal property, and do not receive a listing form, please call the Info Center at 910-798-7300 and request a form be mailed to you.

Real Property

Real property includes any structures or improvements on land including doublewide and single-wide mobile homes on the land of the same owner with it's wheels and axles removed. You do not have to list real property each year only improvements made to the property. Real Property is permanently listed in New Hanover County so you no longer have to list real property each year. However, you must still list improvements made to the property.

Any improvements made during the previous year must be listed during the regular listing period which is the month of January. If you have made improvements to your property and did not receive an abstract, a form can be requested by calling 910-798-7300 or you can write to the Tax Administrator's office and ask us to list for you. This letter must include your name and mailing address, the address of the property, the type of improvement made and the percentage of work completed as of January 1. Someone from the appraisal office will visit your property and identify improvements which have been made. That information will be entered into the tax data base to calculate a value using the adopted schedule of values in effect for the most recent revaluation.

The effective date of our current revaluation is January 1, 2021. Anytime we make a change in your value, you will be notified in writing. If you do not agree with this value, you should contact our Information Center at 910-798-7300 and they will arrange for you to discuss your value with an appraiser. The next revaluation is scheduled to become effective on January 1, 2025.

You may appeal your value in any year between January 1 and the adjournment of the Board of Equalization and Review. The Board of Equalization and Review meets between the first Monday in April and the first Monday in May of each year.

5. What Is Revaluation And Why Have It?

Revaluation is a systematic, in depth process using a Computer Aided Mass Appraisal (CAMA) system to reappraise or reassess all real property in the County to the current market value. (Appraised value and assessed value can be used interchangeably in North Carolina because property is required to be assessed at 100% of its appraised value.) The real estate market is one of constant change caused by the freedom we have to buy and sell property. This change can vary greatly depending on a property's size, type and location. This can create an inequitable situation in the level of assessment among owners of property and inequity among differing types of property.

The longer this situation exists, the more unjust it becomes. The end result is an unfair tax burden on those properties which have an assessed value close to the actual market value compared to those properties whose assessed value is well below market value. The relationship between assessed, or tax value, and market value is called the sales/assessment ratio.

A countywide revaluation is an enormous and complex task. We are fortunate to have a qualified and knowledgeable in-house appraisal team in New Hanover County. They are all residents of the local area who are very familiar with property in this County. They have made every effort to consider the many factors involved in determining property values through the completion of the revaluation process. Field inspections are conducted, sales files are developed and analyzed and market trends continually monitored. Contacts are made with property owners, local realtors, building contractors, building suppliers and home lending institutions, all for the purpose of being as knowledgeable as possible about property values.

6. How is my value determined?

In conducting mass appraisal, the appraisers are generally guided by three basic approaches for analyzing the value of properties. They are:

• The Cost Approach
• The Market (Sales Comparison) Approach
• The Income Approach

The Cost Approach, which is the best suited of the three approaches for the valuation of real property in the "mass appraisal" process, serves as the primary valuation method in New Hanover County. The Cost Approach, estimates the replacement cost new of the property, or the cost to build a structure of equivalent utility (functionality). The estimates are based from costing manuals and local contractors. From that, an estimate of total accrued depreciation (physical, functional, external) is observed, calculated and deducted from the cost estimate to generate the depreciated replacement cost new. To that, land valued separately is then added to get an estimate of the fair market value of the property.

The Market approach to value compares the property being appraised with similar properties sold in the past.

The Income Approach is the process of estimating the value of an income-producing property through capitalization of the annual net income expected to be produced by the property.

The Market and Income Approaches each analyze the value of the whole property. In order to derive a building value estimate from either of these indications of value, the value of the land must be subtracted from the total value. Should the Market or Income Approach, or both, thus indicate a very low contribution for the buildings, the land may be mis-improved (the buildings will no longer represent the highest and best use of the land). The appraiser may be required to apply an appropriate significant amount of Functional or Economic Obsolescence.

If two or three of the approaches indicate significantly different values, the appraiser who reviews the components of each approach usually finds additional factors that must be considered. Not all properties are a candidate for the application of all three approaches.

The Tax Administrator's Office is required to divide every parcel's appraised value into its components (land and building). However, the somewhat artificial allocation of a given parcel's total value (final market value) into its land and building components must not be compared to a similar allocation of total value in any other appraisal opinion. Any such comparison is invalid.

Should an owner elect to appeal a value, only the total value is in question - not its components.

7. What if I Disagree with my property value?

Of course, no matter how thorough and fair a revaluation may be, there are still instances when only the property owner has all the information necessary for an accurate appraisal. That is why there is a relatively easy appeal process. First, complete the appeal form received with the revaluation notice and return it to the Appraisal Office. The appraiser responsible for your area will discuss your concerns after reviewing the back-up used during the revaluation of your property. We will make any corrections that are appropriate based on the review or make no changes. You have the right to appeal that decision, in writing, to the Appraisal Supervisor, who will review the file and respond to you with the results of that review. If you still do not agree with the value you will be provided a "Valuation Complaint Form", from the Appraisal Office, to complete. This will be an appeal to the New Hanover County Board of Equalization and Review which appointed by the Board of County Commissioners. Appeals must be submitted prior to the convening of the Board of Equalization and Review which meets between the first Monday in April and the first Monday in May. It is incumbent upon the appellant to prove that the assigned value is incorrect.

If you are still dissatisfied with your property value after being heard by the Board of Equalization and Review, the next step is to appeal to the North Carolina Property Tax Commission in Raleigh. Very rarely is this step required. From the Property Tax Commission, you may appeal to the North Carolina Court of Appeals and finally to the North Carolina supreme Court. Again, these appeals are very rare since every effort is made by the Tax department to resolve our issue locally among people who are most familiar with property values in New Hanover County.

You can appeal your value by visiting the Tax Department Forms page.

8. Do you accept debit or credit card payments?

We do accept debit and credit card payments in our office. You can also pay your tax bill online with OSG Billing and Payment Solutions website. To pay by phone, call 1-877-295-3383. There will be a convenience fee for this service that is paid to OSG Billing and Payment Solutions.

9. What is the Municipal Services District?

More information on the Municipal Services District, can be found by viewing the Municipal Services District website.

10. What is the debt service tax rate and what does it fund?

Read a full list of FAQs on the debt service tax rate on the Tax Debt Service Tax Rate FAQs.

11. Are There Any Exemptions or Special Programs?

Yes, under certain circumstances, you may be eligible for reduced taxes if you meet the requirements specified in the North Carolina General Statutes. A brief description and the basic requirements are described under this section.

Tax Relief for Elderly & Permanently Disable

Property tax laws exclude the greater of $25,000 or 50% of the assessed value of your home and land up to and including 1 acre of land from the total assessed value of property owned by residents of North Carolina who reside in this residence and who meet the following requirements:

• Must be 65 years old or older, or totally and permanently disabled. (If not 65 years old or older, but permanently disabled, you will need certification from a physician licensed to practice medicine in North Carolina. It is essential that the certificate state your disability is total and permanent. This form will be supplied by the Tax Office).
• Total annual income coming into the home must not exceed the maximum noted on the application. (income is defined as all money coming into your home except inheritances received from a spouse, ancestor or descendant or gifts. For married applicants residing with their spouses, the income of both spouses must be included even if only one is an owner of the property.)

Anyone who meets these requirements can request an exclusion form by calling 798-7300. Applications should be filed prior to June 1 to insure the exclusion is granted for the current tax year.

If the June 1st deadline is missed, you may still return the form and appropriate information to our office. We will be required to submit your application to the Board of County Commissioners for their approval. You will need to write a letter, addressed to the Board of County Commissioners, explaining why the form is late.

Exempt Property

North Carolina General Statutes allow for certain types of property to be exempt from property taxes if they meet the requirements specified by the statutes. Some types of exempt property may include but are not limited to the following:

• Property used for religious purposes.
• Property set aside for burial.
• Property used for educational, scientific or literary purposes.
• Property used for charitable purposes.

To apply for an exemption, an application must be filed with the Tax Administrator during the regular listing period, which is the month of January. To receive an application or learn more about exempt property, please call 798-7300.

Land Use Programs

The North Carolina General Assembly enacted the "Land Use Program," which allows reduced tax values for individually owned property used for agriculture, horticulture or forestry. Basic eligibility requirements follow:

• Agriculture: Agricultural land consisting of one or more tracts, one of which consists of at least 10 acres that is in actual agricultural production and that, for the 3 years preceding January 1 of the year for which the benefit is claimed, has produced an average gross income of at least $1000.
• Horticulture: Land consisting of one or more tracts, one of which consists of at least five acres that is in actual production and that, for the three years preceding January of the year the benefit is claimed, has either produced an average gross income of $1,000 or been used to produce evergreens intended for use as Christmas trees and meet gross income requirements.
• Forestry: Forestland consisting of one or more tracts, one of which consists of at least 20 acres that is in actual production and are not included in a farm unit. A forestry management plan is required.

To apply for the Land Use Program, or learn more about eligibility requirements, contact our office at 910-798-7300.

12. My vehicle value is too high, how do I appeal?

All vehicle values must be appealed informally in writing within 30 days of the date of the notice. Grounds for appeal would be, but are not limited to, excessive damage, poor condition or excessive mileage. Proof must be submitted to prove the condition of the vehicle as of January 1.

13. What if I buy and or sell property during the year?

The owner of personal property (see explanation under Personal Property above) as of January 1st of the current tax year is responsible for taxes for the entire year. Real estate taxes are not pro rated either but are usually handled between the buyer and seller at the time of closing. You should refer to your closing statement to see if provisions for property taxes were made at that time. Most attorneys pro rate the taxes on real estate on a calendar year basis and depending on the time of year the closing is processed determines whether the taxes are paid to the tax department directly or if the seller pays the buyer their portion of the taxes and then the buyer is responsible for payment of the entire tax bill to the tax office. The tax bill is sent to the owner of record when the bills are processed. The January 1st owner's name will appear on the tax bill but it will be sent to the new owner if there is a change in ownership. The reason for sending the new owner the bill is if these taxes are not paid, a lien is placed on the property and any action as described above will be taken against the current owner.

14. When is the Annual Required Listing Period?

The month of January is the annual required listing period. Anyone who does not list their taxable personal property (see section "What is Taxable Property") by January 31st will be charged a 10% late list fee. January 1 is the established date for determining property value and ownership. Everyone pays property taxes for the whole year based on what they own on January 1, with the exception of motor vehicles and trailers registered with the NC Department of Motor Vehicles. Vehicle taxes can be prorated when the vehicle is sold or a taxpayer moves out of state and surrenders their license plate to the NCDMV. All other taxes are not prorated or released because you relocate within or out of North Carolina or dispose of the property anytime after January 1. The full amount of tax is due for the entire year based on ownership and property value as of January 1 of the current year. You list in one county each year. If you move to another county in North Carolina after January 1, you will not file a "Property Tax Listing" form in that county until the following January.

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Tax 2021 Revaluation

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1. What is the purpose of the revaluation program?

The primary purpose of a revaluation program is to fairly reflect the value of all property in the county. A revaluation provides equalization among all property owners, as well as among all classes of property across the county. North Carolina law requires each county to conduct a revaluation at least once every eight years. New Hanover County has implemented a four-year plan for its revaluation programs to better reflect changes in market conditions that exist in the county. This process will help ensure that taxpayers are paying appropriate taxes for property, based on the changing property values that occur during periods of growth or economic downturn. The revaluation program is not intended to increase revenue for the county. It is in place to ensure that each property owner pays their fair share of the cost of services rendered by local government, based on the value of their property.

2. When do the new property values go into effect?

The new values became effective on January 1, 2021 and will be reflected in the tax bills property owners receive in August of 2021.

3. What is the difference between Reappraisal and Revaluation?

Nothing. NCGS 105-286 states that each county must reappraise all real property at least once every eight years. The Reappraisal process is appraising or valuing property at its true market value as of a certain date in time. Many tax offices will use the term 'revaluation' instead of 'reappraisal' and one is not more right than the other. We will see the term 'reappraisal' referred to in the statutes while simultaneously referring to it as a 'revaluation' internally. Both mean the same, one is just more formal than the other.

4. How will I be notified of any property value change?

The New Hanover County Tax Department will mail out the 2021 Notice of Assessed Values to all New Hanover County residential and commercial real property owners in early 2021.  This notice will inform taxpayers of their new property values for the 2021 tax year. The notice is not a tax bill. Tax bills will be mailed out in August 2021.

All real property values can also be viewed on the NHC Tax Department's Property Assessment website.

5. What was the process for determining my property value?

New Hanover County goes to great lengths to get a true and accurate value of each property in the county. New Hanover County tax appraisers visit residential and commercial properties in the county, photograph properties, educated citizens, take measurements, and evaluate improvements or deterioration to the property. The appraisers currently review and assess over 110,000 parcels and use proven methods for analyzing comparable properties and other factors affecting property value. Each property is appraised using the same method, applied uniformly across the county.

The Tax Department has made available online, Property Tax Questionnaires and Sales Verification forms for citizens to fill out to better assist us confirming their property and/ or sales information. The purpose of these forms are to verify sales information along with square footage, number of rooms and bathrooms, and other important details. All of the completed forms and questionnaires are reviewed by staff, and follow-up calls and visits are made when necessary to address concerns and to make sure property information is accurate. From all of this information and thorough extensive research, New Hanover County's appraisers are able to determine the value for each property.

New Hanover County Tax Office used a modified cost method for all properties. The exception to that is Low Income Housing Tax Credit program (LIHTC) apartments which are valued on the income approach.

6. Where did New Hanover County get their comparable sales and or basis for value?

New Hanover County looks at all comparable sales within a revaluation cycle that are considered to be "arm's length transactions". This means that neither party involved in the sale is acting under duress. These sales, used along with our modified cost method, determine the basis for the valuation of all properties in New Hanover County.

7. What if I disagree with the revaluation of my property?

Before assuming that the value of your property is incorrect, you are advised to check into the current selling price of comparable property in your area.

Every revaluation is a new starting point. There is no precedential value based on prior actions of the Board of Equalization and Review or staff. With each appeal the only debate is what was the market value of this property on January 1, 2021.

If you feel the assessed tax value is not in accordance with comparable properties in your area or if you feel that New Hanover County has inaccurate information about your property's size or features, you can appeal the revaluation of your property.

8. What are the steps to appeal my property value?

State law presumes that assessments are correct. This presumption places the burden on the Taxpayer to "produce competent, material and substantial evidence that tends to show: either the county tax supervisor used an arbitrary method of valuation; or the county tax assessor used an illegal method of valuation; and the assessment substantially exceeded the true value in money of the property." (In re Appeal of Amp, Inc., 287 NC 547 at 563 (1975))

• To begin the appeal process, complete the appeal form online at the Tax Department Forms website. If you are filling out a paper form that you have received from our office, you have the option to hand deliver it or mail it back to our office, If mailing in the form, please mail it to the New Hanover County Tax Department, ATTN: Appraisal Department, 230 Government Center Dr. Suite 190, Wilmington, NC 28403.
• An appeal form must be completed within 30 days of receiving the revaluation notice. By completing an appeal form, you are requesting an informal review of your property.
• It is incumbent upon the appealing taxpayer to provide written or photographic evidence that the county assessors decision is unlawful or incorrect, not simply that you disagree. You must be able to prove that the county assessor has made an error and that the value placed on the property is substantially greater than true value. Without this evidence of error, the Board is not at liberty to revise the value. The current date of value is January 1, 2021 therefore, examples would be an appraisal as of 01/01/2021 (no more than 12 months prior), or documentation of closed qualified market sales that occurred between January 1, 2019 and December 31, 2020.
• You are encouraged to have information to support your position, i.e., a recent real estate appraisal of your property and records of known sales of nearby properties, or other factual information that you feel would be beneficial. Include this information with your appeal form.
• Informal Appeal Process: The appraiser responsible for your area will review the appeal information that you have submitted. After review, you will be sent a notice with the informal review decision, with your property's assessed value (note: a notice will be sent even if the value remains the same).
• Formal Appeal Process: If you do not agree to the value after the informal review decision and you still believe that the real property value estimate is incorrect, please notify the appraiser handling your appeal by phone, email, or mail, that you still disagree. Your informal appeal status will then be changed to the formal appeal status and you will be scheduled for a hearing before the Board of Equalization and Review. You will be sent a notice notifying you within 10 days of your scheduled hearing for you to present evidence as to present information as to why you feel the value of your property is incorrect.
• The Board of Equalization and Review is composed of New Hanover County citizens, appointed by the Board of Commissioners, sitting in special session, to review and equalize the valuations of all property in the county. Meetings will take place at the New Hanover County Government Complex, 230 Government Center Drive. The appellant will be given time to present their factual evidence (written and /or photographic) to the Board proving that the county assessors decision is unlawful or incorrect, not simply that you disagree. You must be able to prove that the county assessor has made an error and that the value placed on the property is substantially greater than true value. Without this evidence of error, the Board is not at liberty to revise the value. Please have your evidence readily available to expedite the hearing process
• If, after appealing to the Board of Equalization and Review, you are still dissatisfied with the outcome, you may appeal to the Property Tax Commission in Raleigh, NC. Information on how to submit your appeal will be included in the decision notice from your Board of Equalization hearing. The Property Tax Commission is located at 501 N Wilmington Street, Raleigh, North Carolina 27604 in the Revenue Building.
• The final method for appeal is to the NC court system.

9. When is the deadline to appeal my 2021 assessed value?

The Board of E and R will adjourn on May 11, 2021.

Pursuant to NC.G.S. 105-322 the New Hanover County Board of Equalization and Review will meet as required by law.

Purpose of Meeting

To hear upon request, any and all taxpayers who own or control taxable property assessed for taxation in New Hanover County, with respect to the valuation of such property or the property of others, to schedule hearings, and to fulfill duties and responsibilities required by law.

Time of Meetings

As per NC.G.S. 105-322 (E) Time of Meeting

Each year the board of equalization and review shall hold its first meeting not earlier than the first Monday in April and not later than the first Monday in May. In years in which a county does not conduct a real property revaluation, the board shall complete its duties on or before the third Monday following its first meeting unless, in its opinion, a longer period of time is necessary or expedient to a proper execution of its responsibilities.

10. Would I need multiple appeal forms to appeal multiple properties?

Yes, a separate appeal form must be submitted for each parcel that you are appealing. Forms can be found online on the Tax Department Forms website.

11. Why did my value go up over a year?

Your value was last assessed as of January 1, 2017. Unless you made changes to the property (added or removed something of value) your assessed value would have stayed the same through December 31, 2020.

12. Why isn’t my value the same as the sale price I paid for it?

New Hanover County, as with all counties in North Carolina, determines property value through a process called mass appraisal. Mass appraisal is the process of valuing a group of properties as of a given date and using common data, standardized methods, and statistical testing to determine value. New Hanover County is therefore looking at the neighborhood market as a whole and sometimes some properties are low while others are high.

13. How does revaluation equalize the tax burden?

Since property taxes are based on value, it is important to have all property valued periodically on a uniform basis, using a modern system of valuation. Property values change with time. Some values go up, some go down, and others remain static. Appraisals must be updated or inequities in tax distribution will result. For instance, property valued at $150,000 in 2017 might now be worth $172,000, or the property could have declined in value to $135,000. In either case, the 2017 assessed value of the property is obsolete and will result in the property owner either paying too much or too little of his or her share of the tax for the operation of local government. New Hanover County's revaluation will make sure people are paying taxes fairly, based on their current property value.

14. What effect will the revaluation project have on tax bills?

At this time, the effect of revaluations on tax bills is unknown. There are three factors that determine how much tax each property owner must pay:

• The assessed value of the property.
• The cost of local government-provided services that the citizens of the county require.
• The tax rate set by the New Hanover County Board of Commissioners and each municipality (City of Wilmington, Town of Carolina Beach, Town of Wrightsville Beach, and Town of Kure Beach) to meet the cost of services.

The revaluation’s effect on your tax bill cannot be determined until operating budgets are adopted and the governing bodies have set tax rates for New Hanover County and the various municipalities. Budgets are adopted and tax rates are set prior to July 1 each year. Historic tax rates can be located on the Tax Department Historic Tax Rates website.

15. What tax rate will be used for 2021?

The NHC Commissioners set the tax rate during the county budgeting process. The 2021 tax rate will be announced by the Commissioners in Summer of 2021.

16. What percent of value does NHC tax on?

100% of market value per NC General Statue 105-283.

17. When is the next County Revaluation?

New Hanover County is scheduled to undergo a full county real property revaluation effective January 1, 2025.

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Tax Debt Service Tax Rate FAQs

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1. What is a debt fund and is this a new tax or fee? Why is it shown separately on my bill?

The debt service fund tax rate, or "debt fund" as it is abbreviated on the tax bill, is not a new tax or fee. It is a part of the overall property tax rate charged by the county. The county raised its property tax rate by 2 cents in fiscal year 2016 and by 4.9 cents in fiscal year 2017, for a total of 6.9 cents. Both of these tax rate increases were established in order to make payments on the county's voter-approved debts.

When citizens vote to approve bonds, the county issues the bonds to raise the money to fund the projects. The county must make payments to the lender, just as an individual would on their mortgage or car loan. The payments that will be made to the lender are called the debt service.

This rate is being shown separately on the tax bill and tracked separately in a debt service fund to ensure that those funds are used only for their intended purpose, which is paying the debt service payments on voter-approved bonds.

2. What do I get with the general fund tax rate?

The county provides a wide range of services for its taxpayers. As an example, the general fund tax rate is used to fund public safety, most notably law enforcement and the county jail through the Sheriff's office. It provides human services such as the county's health clinic and health services, programs for individuals and families through the Department of Social Services, and programs for the aging through the Senior Resource Center. It provides management and maintenance of our county parks, libraries and the Cape Fear Museum. Over 30 cents of the rate assists with operating and capital needs of the education system in New Hanover County through the New Hanover County Board of Education and Cape Fear Community College.

3. What are voter approved bonds?

The county has limited means in which it can borrow money. One of those methods is to ask citizens to vote on whether they want the county to borrow the money for the proposed purposes. It is made clear when the question is put to the voters that a corresponding increase in property taxes may be necessary to fund the bonds.

Once the question is put on the ballot for a vote, if a majority of citizens vote yes for the bond, the county has the authority to borrow those funds. This type of borrowing requires repayment using the county's property tax revenue.

Typically, when the county issues voter approved bonds, it makes debt service payments on those bonds for 20 years. At the end of the county's 2016 fiscal year on June 30, 2016, the county had over $337 million in outstanding voter approved bonds. This amount increases as new bonds are issued and decreases as debt service payments are made.

4. What projects are being paid for with the borrowed money?

The voter-approved debt includes projects that created parks and recreational facilities in our county, such as the expansion and improvement of Northern Regional Park and Veterans Park through the 2006 voter-approved bonds. It also includes projects to construct facilities for Cape Fear Community College, including the Union Station building, the Humanities and Fine Arts Center and the Advanced and Emerging Technologies facilities from the 2008 voter-approved bonds. Later debt approved by the voters in 2014 was for county public school facilities, which includes the construction of the new Porters Neck Elementary and the replacement of Blair Elementary and College Park Elementary.

5. Will that debt service fund tax rate change in the future or remain at 6.9 cents?

The debt service fund tax rate was developed based on the county's currently known debt service payments. However, the intent is for the tax rate to decrease as the payments on the debt decrease. The Board of Commissioners would need to enact any tax rate decrease.

Many variables go into calculating the rate, such as future interest rates and future taxable value in the county. These variables, along with others, may change the timing at which the dedicated tax rate can be changed. Any future approval by the voters of additional voter-approved debt would also change the rate needed in the debt service fund.

6. What if I didn’t vote for the bonds or I don’t use the services or facilities the borrowed money funded? Am I still required to pay the 6.9 cent tax?

Yes, even if you voted no for the bonds and even if you don't use the facilities, all of the county taxpayers must pay this rate. The majority of citizens voted yes to borrow the money and, with that vote, agreed to make payments on that borrowed money. The overall county tax rate is separated on the tax bill and tracked in separate funds to demonstrate that the funds are being spent for their intended purpose.

7. What are the other charges on my bill?

In addition to the county tax rate, which is separated into the General Fund rate and the debt fund rate, if you live in the City of Wilmington, or the towns of Wrightsville Beach, Carolina Beach or Kure Beach your bill will reflect the tax rate of the municipality where your property is located. If you live in the unincorporated area of New Hanover County (outside the City or the three towns) the fire services district rate will be included on your bill.

Each district or municipality is a separate unit that is authorized to charge a tax for the services that it offers. The rates are different for each district or municipality because they provide different levels of service for its taxpayers. The county collects all the taxes for these districts and municipalities and sends the tax revenue to those units. For instance, if you live in the City of Wilmington, you will see a separate rate on your bill for the City of Wilmington, which the county will collect from you and then send to the City of Wilmington. For specific questions on the rates for the City of Wilmington, Town of Carolina Beach, Town of Wrightsville Beach or the Town of Kure Beach, please contact your municipality directly as New Hanover County does not set the tax rate for those units.

Residents living in the unincorporated areas of New Hanover County will see a fire district tax rate. Only residents living in the unincorporated area pay this established rate.