Taxes

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September 07, 2015

Caswell Beach

Taxes are never a popular subject but to provide governmental services they are necessary.   The below information is a guide to the taxes you may encounter as a resident or business owner in the Southport-Oak Island Area.  The rates and types are subject to change and for business owners especially, this is a partial list.  We encourage our business owners to seek a local tax professional or one of the non-profit or government small business assistance agencies who can assist you in starting or moving your business. 


Brunswick County Personal Property Tax-

When moving into Brunswick County you must declare your personal property with the Brunswick County Tax Office. Personal Property is defined as: mobile homes, motor boats, boats, jet skis, aircraft, and vechiles with permanent multi-year tags issued by the NCDMV. It also includes unlicensed vehicles, which are those not having an active North Carolina registration on January 1 of a year, including automobiles, trucks, trailers, permanet multi-year trailers, campers and motorcycles.  The tax rate for personal property is the same as the tax rate for real property.

The North Carolina General Assembly passed a new law which became effective July 1, 2013 to create a combined motor vehicle registration renewal and property tax collection system (Tag & Tax System). By doing so the new law transfers the responsibility for motor vehicle tax collection from the individual counties across North Carolina to the North Carolina Division of Motor Vehicles (NCDMV). North Carolina's new Tag & Tax Together System has been designed as a convenient way to pay annual vehicle tag renewals and vehicle property taxes by combining them into one billing.

Motor vehicles are billed for personal property taxes approximately four months after the registration is renewed or tags are purchased for the vehicle.  When trading a vehicle, do not get a new tag, transfer your tag or it may result in a second tax billing and liability. When you receive your vehicle registration renewal card from the NC Department of Motor Vehicles(DMV), make sure your address and county information is correct.  If not correct, DMV must be notified so you are taxed by the proper county and city.  The bill is payable on the first day of the month and due by the last day of that month.  Questions?  Contact the Brunswick County Revenue Department at 910.253-2729.


Brunswick County Real Property Tax-

The real property tax rate will vary from county to county and from town to town.  Tax rates are per $100.00 assessed valuation. State law requires that real property be reassessed or revalued at least once every 8 years. Counties may adopt shorter intervals and Brunswick County now revalues every 4 years. This assessment is made by the county Tax Administration office. In Brunswick County, the current cycle is 2015, 2019, and 2023.  Cities and towns may also levy real property taxes above the county tax. There are also rural fire district levies.  Fire district rates are usually very low.  In much of the State, only county-wide rates apply outside of cities and towns.  
 

2015 Tax Rates:

City/Town

County

Tax

Hospital Tax

City or Town

Tax

Bellville

.4850

--

.0683

Boiling Spring Lakes

.4850

--

.210

Bolivia

.4850

--

.050

Calabash

.4850

--

.0875

Carolina Shores

.4850

--

.1016

Caswell Beach

.4850

.04

.220

Holden Beach

.4850

--

.15

Leland

.4850

--

.1515

Navassa

.4850

--

.200

Northwest

.4850

--

.240

Oak Island

.4850

.04

.275

Ocean Isle Beach

.4850

--

.1875

St. James

.4850

--

.050

Sandy Creek

.4850

--

.300

Shallotte

.4850

--

.350

Southport

.4850

.04

.2456

Southeast Brunswick Sanitary

.4850

.04

--

Sunset Beach

.4850

--

.16

Varnamtown

.4850

--

.050

Bald Head Island

.4850

.04

.6663

BHI MSD Zone A

.4850

.04

.7471

BHI MSD Zone B

.4850

.04

.7169


North Carolina Individual Income Tax-

The 2015 North Carolina taxable income flat rate is 5.75%.  In calculating North Carolina taxable income, a taxpayer must add to or deduct from the taxpayer’s adjusted gross income certain items that are not included in the taxpayers adjusted gross income.  See one of our tax professionals to assist you in filing your return.

North Carolina Sales Tax-

As of April 1, 2015, the State levies a general retail sales and use tax of 4.75%. Counties levy additional local sales and use tax. Brunswick County’s is 2%. Sales of food for home consumption are subject to a 2% local tax.  The general State and local sales tax rate applies to the sales price of mixed beverages. The rate is 7% on spirituous liquor other than mixed beverages.  For information contact the NC Department of Revenue at 877.252-3052. 

Smithville Township Dosher Hospital Tax-

Brunswick County has six townships – Waccamaw, Lockwoods Folly, Town Creek, Shallotte, Northwest and Smithville. The municipalities of Oak Island, Caswell Beach, Bald Head Island and Southeast Brunswick Sanitary District and Southport are located in Smithville.  Residents of Smithville Township voted to levy a tax to support capital improvements at Dosher Memorial Hospital. The tax rate is currently .04 cents per $100 of assessed property value. Dosher Memorial Hospital is administered by seven residents of the District who serve on a publicly elected Board of Trustees. 

Accommodations Tax-

This tax is computed on the receipts derived from the rental of any room, lodging, or accommodation furnished by a hotel, motel, inn, tourist camp, or similar place within the county that is subject to sales tax imposed by the State under G.S. 105-164.4(a)(3) from the rental of private residences and cottages within the county that are exempt from the sales tax imposed under G.S. 105-164.4(a)(3) solely because they are rented for less than 15 days. 

City or Town

County

Tax Rate

City or Town

Tax Rate

Accommodations

Total Rate 2014

Bald Head Island

--

6%

6%

Caswell Beach

1%

5%

6%

Oak Island

1%

5%

6%

Southport

1%

3%

4%


North Carolina Highway Use Tax-

North Carolina collects a Highway Use Tax (HUT) on vehicles instead of a state sales tax. The tax is assessed each time a title is transferred.  Money that is collected for the Highway Use Tax goes to the NC Highway Trust Fund and the State's General Fund. That money is then used to improve the roads of North Carolina.   The tax is assessed each time a title is transferred.  The rates are as follows:

Commercial 26,001 lbs. and over         

Max $1,000

Mobile Homes                                    

2% Sales Tax, Max $300

Out-of-State Residents                         

Max. $150

Overseas Vehicles                               

3% Sales Tax

Overseas Vehicles-Military Personnel     

3% Sales Tax, Max. $150

Special Mobile Equipment                    

7% Sales Tax

Vehicles                                              

3% Highway Use Tax

There are certain exemptions from Highway Use Tax. 

North Carolina Estate Tax & Federal Gift Tax-

As of January 1, 2013, North Carolina has no inheritance tax. A Gift Tax is a tax assessed on the value of property that is gifted from one person to someone other than their spouse (provided that the spouse is a U.S. Citizen).  In 2014, the first $14,000 is exempt from Gift Tax.  Gifts over the $14,000 are taxed.  There is a lifetime exemption from gift taxes. In 2014, the amount is $5,340,000.  Future years the exemption amount will continue to be indexed for inflation and the federal tax rate will remain at 40%.

North Carolina Corporate Income Tax-

The corporate income tax rate was 6% in 2014 and 5% in 2015. The rate will be further reduced to 4% during the 2016 tax year and to 3% for post-2016 tax years provided that specified revenue growth targets are reached. The rates will be decreased in 2016 if net general fund tax collections for fiscal year 2014-2015 exceed $20.2 billion. The rate will be decreased for post-2016 tax years if the net general fund tax collections for fiscal year 2015-2016 exceed $20.975 billion.

Brunswick County Business Personal Property Tax-

All businesses are required to list their tangible personal property (e.g., machinery, equipment, furniture, cash registers, etc. ) used in connection with a business.  It is taxable at the site of the business premises. A separate business listing form must be completed for each business. The deadline for listing also is January 31st. An extension of the deadline can be granted; however, the request for an extension must be received in the tax office by January 31st.  Tax rates are the same for all types of properties.  A 10% penalty is applied for each late filing.  The penalty is compounded by 10% for each year ( up to six ) the property is not listed. Contact the Brunswick County Tax Office for more information.


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