- CustomLinks_19
- Beach Nourishment Financing/Taxes
Beach Nourishment Financing/Taxes
Project financing typically comes from a combination of:
- town-wide property taxes (all properties in Nags Head contribute to beach nourishment at a rate of $0.02)
- revenues from municipal service tax districts (see below for additional information)
- a contribution from Dare County
- 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.
Beach Nourishment Municipal Service District FAQs
Q. What are the MSD District tax rates?
A. The Board put additional MSDs into place to give the Town more flexibility for future beach nourishment activities. Tax rates were adopted for the Town’s six beach nourishment municipal service districts (MSD) to establish a more sustainable funding plan.
| Municipal Service District | Tax Rate |
|---|---|
| Districts 1 and 2 | 9 cents |
| District 3 | .05 cents |
| District 4 | 1 cent |
| Districts 5 and 6 | 0 cents |
Q. My property is not on the beach. Why is it included in the additional MSDs?
A. The Board’s long-term goal is to create a more sustainable and proportional funding plan for future nourishments. This plan better recognizes the benefits of nourishment that 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 beach. In addition, our beach is a key piece of infrastructure from which all of us benefit. Finally, the supplementary revenue from the new tax formula will build up the Town’s beach nourishment fund balance to support future projects and provide more stability for future tax rates.
Q. How long will these new districts be in place?
A. Since nourishment has been taking place since 2011, we do not anticipate the Town stopping the projects. Future nourishments require revenue; therefore these districts will remain in place until the Board of Commissioners decide otherwise.
Q. Why is my property in two districts? Will I be taxed twice for beach nourishment?
A. If you own property south of Bonnett Street that is east of South Virginia Dare Trail or South Old Oregon Inlet Road, that property will be in two districts, your current district and one of the newly created districts. To include a property in an MSD, the project must be within the MSD boundaries. To prepare for future projects, you will pay two separate beach nourishment taxes.
Q. I don’t want to be a part of a municipal service district. What can I do?
Per state statute, property owners may petition the governing body to establish, exclude, or remove property from an MSD – Board must consider petitions at least once per year.
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.