Holly Ridge Town Council amended its proposed Fiscal Year 2014-2015 budget Tuesday to adjust for losses after the state quashed municipal privilege license taxes last week and reduced the scope of local taxing authority.
HOLLY RIDGE | Holly Ridge Town Council amended its proposed Fiscal Year 2014-2015 budget Tuesday to adjust for losses after the state quashed municipal privilege license taxes last week and reduced the scope of local taxing authority.
The board’s budget approval was unanimous.
Privilege license taxes targeted businesses operating temporarily within city limits and in Holly Ridge were charged by a fee schedule, said Holly Ridge Town Clerk Heather Reynolds.
“It charged to businesses to come in town to do work,” she added.
The loss was a fraction of the town’s budget, however. Next year’s roughly $2 million budget required no tax hike in a locale that derives about half its revenue from property taxes, according to town documents.
“We had a decrease in revenue of $7,000 for the privilege license,” Holly Ridge Finance Officer Susan Prather said. “That money came off on the expense side for contingencies we had set aside.”
Town and city leaders statewide are hustling with last-minute budget adjustments to compensate for revenue that tax once generated after state officials passed a law eliminating the fees. The fiscal year ends June 30 in North Carolina.
Despite additional expenditures added to next year’s budget at Tuesday’s meeting, Holly Ridge still has a balanced budget, Prather said.
The Fiscal Year 2014-2015 budget now includes a $2,000 bonus for Town Manager John Maiorano and $2,500 for body repairs to a dump truck.
Holly Ridge Town Council’s next meeting is scheduled for 7 p.m. July 8 at Town Hall at 212 North Dyson St.