The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Monday, July 8, 1996                  TAG: 9607080049
SECTION: LOCAL                   PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: BY PAUL SOUTH, STAFF WRITER 
                                            LENGTH:   94 lines

IN SOME TOWNS, JULY MEANS MORE TAXES ELIZABETH CITY CHARTS THE REGION'S LARGEST INCREASE THIS FISCAL YEAR.

Residents in Elizabeth City, Pasquotank County, Southern Shores, Kitty Hawk and Edenton will feel a little lighter in the pocketbook as of July 1, now that tax increases have taken effect for the 1996-97 fiscal year.

Other local governments in the area, however, will hold the line on taxes.

The biggest boost in property taxes came in the region's largest municipality. Within the Elizabeth City corporate limits, homeowners face a 2.5-cent increase in municipal property taxes. Property taxes there are now 64 cents per $100, up from 61.5.

City Council approved a $35 million budget that includes the 2.5-cent tax increase.

The hike means the owner of a $100,000 Elizabeth City home will pay an additional $25 in municipal property taxes this year.

In Pasquotank County, residents will pay an additional nickel in property taxes. The county tax rate will rise from 72 cents to 77 cents per $100 in property value. The increase will go to local schools.

In Southern Shores, rising cost of government, along with a commitment to make road and bridge repairs, prompted the first tax increase in that Outer Banks beach town in six years.

``There was a two-fold reason,'' said Southern Shores Councilman Gerald Beshens. ``We've added staff. And so the cost of doing business is going up. Also, Southern Shores has had a policy to keep $1 million in reserve.''

A seven-citizen Southern Shores panel recommended a 6-cent tax increase, to take effect in 1998. But the council instead approved a 4-cent increase for this fiscal year. The town approved a $1.7 million spending blueprint that includes a 22-cent tax rate.

In Kitty Hawk, the town council approved a new $2.2 million budget that includes a 1-cent increase in property taxes, from 28 to 29 cents per $100 in assessed property value. The penny increase became necessary, town officials said, because of the strain that solid waste tipping fees caused on Kitty Hawk's budget.

Tipping fees are levies that towns or counties are required to pay for dumping solid waste in private or public landfills.

``When the county closed its landfill, and turned the responsibility back to the towns, we had to budget money for tipping fees. And we were going into the hole,'' said Kitty Hawk Town Manager Robert Nicholl. ``I've set aside the solid waste portion of the tax into an enterprise fund to take care of tipping fees.''

In the Kitty Hawk budget, 24 cents will go to general operating costs, while 5 cents will be set aside for solid waste disposal.

Edenton residents also are paying higher taxes in this new fiscal year. The tax rate increased from 38 cents to 39.5 cents per $100 in valuation. The increase will be used to fund a new municipal recycling program.

Tax rates for most Outer Banks residents will remain unchanged, as government officials in Dare and Currituck counties, Kill Devil Hills, Nags Head and Manteo sought to hold the line on property taxes.

Here is a summary of those rates.

In Dare County, the 40 cents per $100 in value levy remains unchanged from 1995-96. Last year, the county approved a 2-cent hike in taxes to provide more money for education.

Increases in sales tax revenue, property tax collection rates and an unanticipated increase in interest income on the county's investments held taxes stable, Dare County Finance Officer David Clawson said.

Currituck County rates also will remain the same, at 65 cents per $100 of valuation. The $17.5 million spending plan provides for a 4 percent increase in the education budget. It also includes a 21.5 percent increase for the Sheriff's Department.

School officials had hoped for a 7 percent funding increase.

In 1995-96, taxes were increased by 9 cents to pay for the new high school.

The towns of Kill Devil Hills, Nags Head and Manteo also will keep the status quo in tax rates.

In Kill Devil Hills, the taxes will remain at 44 cents per $100. The beach community approved a $6.5 million spending plan.

In Nags Head, the almost $8 million budget will be funded by the same tax rate as in 1995-96. The property tax rate stays at 34.8 cents per $100 in assessed value.

Manteo approved a $1.1 million budget, and maintained its current rate of 37 cents per $100 in valuation. ILLUSTRATION: TAX RATES

Here is a summary of tax rates for some area city and county

governments, including 1996-97 tax rate and change, if any, from the

previous fiscal year. Rates are calculated per $100 in property

value.

Currituck County: 65 cents; no change

Dare County: 40 cents; no change

Edenton: 39.5 cents, up from 38 cents

Elizabeth City: 64 cents, up from 61.5 cents

Kill Devil Hills: 44 cents; no change

Kitty Hawk: 29 cents, up from 28 cents

Manteo: 37 cents; no change

Nags Head: 34.8 cents; no change

Pasquotank County: 77 cents, up from 72 cents

Southern Shores: 22 cents, up from 18 cents by CNB