Leland, N.C. – This is the time of year when municipalities across North Carolina work on their next fiscal budgets. State law mandates that every town, city, and county government must have a budget passed no later than June 30.
In the Cape Fear region, one town’s budget process has created a bit of controversy. The outcome will have a significant impact not only on current residents but also on those considering relocating from other parts of the country.
For at least a decade and a half, the town of Leland has been attracting new residents. People looking to escape the cold weather and potentially higher taxes in the north have fallen in love with this Brunswick County community. They appreciate the close proximity to downtown Wilmington, less than 10 miles away, as well as the planned communities such as Brunswick Forest, Magnolia Greens, Waterford of the Carolinas, and Compass Pointe. Those moving from places like New York, New Jersey, and Connecticut particularly appreciate the lower taxes.
However, as each new resident moves to Leland, the burden on the town’s budget increases.
To meet the growing demand for services and programs, the town council proposes to increase the property tax rate. Their initial proposal, submitted in late January, called for an increase of a whopping 70%. After months of backlash, Leland abandoned that plan and is now debating a 17% tax increase. The town says the money will go toward public safety, infrastructure, and salaries.
If passed, homeowners would pay 27 cents for every $100 of their home’s valuation. The average home in Leland is assessed at $425,000, which means the average property tax would be $1,150 annually. Under the current rate of 23 cents, homeowners of the same property are charged roughly $980 a year.
Even at the higher rates, the proposed numbers remain significantly lower than rates in other parts of the country. In New Jersey, which has the highest property taxes in the nation, residents pay $2.23 for every $100 of their home’s value. In Connecticut, the average is $1.96, while in New York, it is 98 cents. In those three states, a $425,000 home would result in a tax bill of nearly $9,500 in New Jersey, $8,300 in Connecticut, and $4,125 in New York.
“With Leland having so many residents who moved here from high-taxed northern states, they bring memories of taxes going up,” said Jennifer Reinholt of Just For Buyers Realty. “When a town like Leland says it’s growing and needs more police officers and firefighters, pave new roads, and so on, residents—despite knowing the local tax rate is still far lower than back home—understand how things can escalate and start pushing back.”
A pushback occurred on Saturday, April 13. Around 100 Leland residents gathered outside town hall to rally against any tax increase. The protest was organized by a group called “Better Government 4 Leland.”
Brunswick Forest resident Rhonda Florian founded “Better Government 4 Leland,” the group behind Saturday’s “Stop the Madness” rally.
“We are all citizens and residents of Leland, North Carolina,” Rhonda Florian told the Wilmington Star News. “It doesn’t matter if we have lived here for 50 years or five weeks. Every one of us is a citizen of this town, and we are all in the same boat. We are all getting screwed, every one of us. We must come together in that boat and start paddling in the same direction. If we don’t, we’re going to drown.”
Florian has created a Facebook page that posts on the tax issue and includes art work of citizens who are willing to fight back.
Instead of increasing taxes, the Better Government 4 Leland group suggests that the local government should cancel plans to increase staff salaries, expand the town hall building, and purchase a new fire truck. The proposed budget also includes adding officers to the police department, renovating public parks, and launching a sidewalk improvement campaign. These specific items were not mentioned at the rally, but protest leaders told local media that they prefer to cut any service over increasing the tax rates.
The Leland Town Council will hold its next scheduled meeting on April 18, where the public will be asked to voice their opinion on the issue.
Just For Buyers Realty keeps close track of all the area’s municipal property taxes. We have a web page dedicated to tracking the current rates. This page will be updated as each town votes on its next fiscal budget.