Drexel's Mayor Dennis Anthony statement on Property Tax Referendum

Drexel Mayor Dennis Anthony responds to The Paper’s request for a statement on the statewide referendum that would place limits on how local governments determine their property tax rates:

Voters are set to decide on a constitutional amendment on Nov. 3 that would authorize the state legislature to establish limits on property tax levies. This is a complex issue, and voters should carefully consider the repercussions of such a decision. As voters make this decision, I wanted to present information about property taxes and three points to consider as everyone heads to the polls.

First, property taxes support essential public safety services. In Drexel, half of the general fund budget funds police and fire services, including competitive wages, new equipment, and training. Rural North Carolina faces significant resource constraints as they compete with urban areas for talent, equipment, and grants. Property taxes help keep our agencies up to date and well trained.

Second, municipalities have extraordinarily little control over any other revenue sources in the general fund outside property taxes. For example, although they receive a sales tax allocation from the state, municipalities do not dictate rates or set the method of allocation. During a budget crisis, elected officials could adjust property tax rates through the annual budget process to protect long-term fiscal health, but they could not alter sales taxes or other revenue sources.

Finally, North Carolina’s history underscores the role of property taxes. Since 1921, state law has authorized local governments to levy property taxes, which have since provided the largest share of general fund revenue for most local governments. These taxes are essential to public services, so changes to this century-old system warrant careful consideration.

Whatever the voters decide, property taxes remain a vital part of municipal operation and the vote will affect how all towns and cities do business.

DENNIS ANTHONY

Mayor, Town of Drexel

Read about all three statewide referenda, including statements in arguments opposing and in favor, by clicking here.