Frequently Asked Questions about Beach Nourishment

Topics by Category
Physical Discussion
Fiscal Discussion
  • Video of a portion of the October 13, 2013 Kill Devil Hills Board of Commissioners meeting at which Dare County Manager Bobby Outten presented the Board with an interlocal agreement for beach nourishment funding. Presentation of the County Manager to the Kill Devil Hills Board of Commissioners on the interlocal agreement for Beach Nourishment funding.
  • Beach Nourishment Fund:  A portion of the 6% Occupancy Tax collected by Dare County is set aside for the Beach Nourishment Fund. The occupancy tax is applied to gross receipts derived from rental of room, lodging, campsite, or similar accommodation furnished by any hotel, motel, inn, tourist camp including private residence and cottages rented to visitors. The Beach Nourishment Fund must be used for the placement of sand, from other sand sources, the planting of vegetation, and the building of structures that are in conformity with NC CAMA, such as sand fences and dunes, on beaches of the Atlantics Ocean of North Carolina for the purpose of widening the beach to benefit public recreational use and mitigating damage and erosion from storms to inland property. 
  • Occupancy Tax Distribution Rate
    • 3% Room Occupancy Tax (68% of net proceeds to Duck, Kill Devil Hills, Kitty Hawk, Manteo, Nags Head and Southern Shores in proportion to the amount of ad valorem taxes levied by each town for the preceding fiscal year and 32% to Dare County)
    • 1% Room Occupancy and Tourism Development Tax (net proceeds to the Dare County Tourism Board)
    • 2% Room Occupancy and Tourism Development Tax for Beach Nourishment 
  • Excerpt from 2015/2016 Fiscal Year Budget Message on Beach Nourishment:

    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.  

Policy Discussion