General Fund Revenues
Ad valorem Taxes
Ad valorem taxes are charged based on each $100 valuation of assessed property. The Recommended Budget increases the current ad valorem tax rate of $.3509 to $.3809 town-wide. These revenues are listed as “Taxes – Current Year” in the Annual Budget Estimate-Revenue.
FY 2015/2016 ad valorem taxes have been calculated using an estimated tax base of $2,087,042,209 and a tax collection rate of 99.24 percent; one penny, levied town-wide generates $208,704 in revenue.
Property values used to determine the tax base for the budget were implemented January 1, 2015. Of this amount, $8,394,392 is the ad valorem tax levy.
There is also an additional tax at the rate of $.33 increase applicable to properties listed within Kill Devil Hills’ Beach Erosion Control and Flood and Hurricane Protection Works Municipal Service District for taxes as of January 1, 2015, for the purpose of raising the revenue listed as “Taxes – Municipal Service District” in the Annual Budget Estimate-Revenue section.
The rate of tax is based on an estimated total valuation of property in the Municipal Service District for the purpose of taxation of $168,814,050 and an estimated collection rate of 99.24 percent.
Taxes are increased to offset collateral obligation of the town’s occupancy tax revenue to annually pay the five-year debt service on the issuance of a $4,962,691 special obligation bond for the beach nourishment project scheduled to begin in Spring 2016.