Beach Nourishment Financing/Taxes

Nags Head's beach nourishment projects are likely the largest locally-funded project of their kind in the United States.

Project financing is typically through a combination of town-wide property taxes, including revenues from municipal service districts, and a contribution from Dare County. However, FEMA and the State of North Carolina may provide funds to replace sand lost as a result of a federally-declared disaster, such as a large hurricane.

A municipal service district (MSD) is a defined area within a town where additional property tax is levied to provide projects or extra services that benefit the properties in that district.

This funding plan recognizes that the benefits of nourishment extend well beyond the immediate oceanfront. Properties adjacent to, but not directly on the ocean, benefit from reduced overwash flooding and impacts to infrastructure, such as streets, as well as increased property values due to their proximity to a well-maintained recreational beach. And, we know our beach is a key piece of infrastructure from which the entire town benefits. 

Nags Head's Beach Nourishment Municipal Service Districts

• All properties east of US 158/S. Croatan Highway from Bonnett Street south to Gulfstream Street
• All properties south of Gulfstream Street to Nags Head’s southern town limits
• All properties east of US 158/S. Croatan Highway from Eighth Street south to Bonnett Street
• All properties east of NC 12/South Virginia Dare Trail from Eighth Street south to Bonnett Street.