LAURINBURG — Scotland County commissioners voted Monday to lower the county’s property tax rate to 69.9 cents per $100 of assessed value after state legislation allowed counties to revisit rates following months of uncertainty surrounding property revaluation rules.
The decision comes after the General Assembly passed SB 889, which initially required certain counties to use 2025 property values when setting tax rates. Later legislation, SB 474, exempted Scotland County and other affected counties from that requirement, allowing commissioners to reconsider their budgets using the completed revaluation figures.
Commissioners originally adopted a 99-cent tax rate before the legislative changes were made. July, August and September vehicle tax bills had already been issued at that rate because the N.C. Division of Motor Vehicles prepares bills 90 to 100 days in advance, according to county officials.
Because some vehicle tax bills had already been issued before the rate change, commissioners discussed the need to determine how to handle those payments. Officials suggested reaching out to Richmond County, which recently went through a similar process, for guidance on handling bills already sent to residents.
Commissioners acknowledged the decision to lower the rate came with future challenges, particularly as the county continues to evaluate expenses, fund balance and upcoming capital needs.
“What we’re doing this year is going to have dramatic effects on us the next year and the next year,” Commissioner Tim Ivey said.
Ivey said he remains concerned about the county’s current financial picture because an annual audit has not yet been completed, leaving commissioners without a final fund balance number.
“All we’re working off of is a two-year-old number, and I know we’ve done some basic calculations, but it ain’t quite that easy to figure out that fund balance,” Ivey said.
Although Ivey said he would support the board’s decision, he warned that difficult financial discussions are ahead, including decisions involving the county detention center.
“If you think this year was challenging, next year is going to be much more challenging — much more challenging,” Ivey said. “Normally, this time of year, budget is gone and done, but here we are in the middle of the month and we’re still talking about it.”
Commissioner Ed O’Neal said maintaining the lower tax rate will require careful financial management.
“I think if we apply the right level of fiscal discipline along the way, I think we can get good tax relief to our citizens, but I think it’s going to take a lot of discipline on our part to make this work,” O’Neal said. “It’s not going to be easy.”
O’Neal said rising costs, including health care expenses, will continue to put pressure on the county budget.
“It’s a runaway train that we can’t control,” O’Neal said. “It’s going to get interesting.”
He said commissioners will have to operate efficiently and remain focused on fiscal responsibility.
The board also discussed a proposed quarter-cent local sales tax increase that would require voter approval through a referendum on the November ballot.
Commissioners said the additional revenue could help diversify the county’s funding sources by generating income from visitors and people traveling through the area.
“That quarter-cent sales tax, I can’t stress how important that is to our county,” Ivey said. “Most of it’s going to come from outside of our county, people passing through.”
Commissioner Darin “Duke” Williams said the county also needs to explore other opportunities to expand its tax base and use existing assets.
“We also have to be better stewards of taxpayer dollars and look toward other resources to generate revenue other than off the backs of our business owners and homeowners,” Williams said.
Williams pointed to the county’s water treatment plant in Wagram as one resource that could provide future opportunities.
Commissioners also discussed the potential impact of a proposed statewide constitutional amendment that would require the General Assembly to pass laws limiting property tax increases. The amendment is scheduled to appear on the Nov. 3, 2026, ballot.
O’Neal said the county should begin advocating against restrictions that could limit local governments’ ability to respond to future needs.
“We’re going to need to advocate for our county and make sure we don’t get handcuffs that keep us from being able to deliver what we need to deliver,” O’Neal said.
Commissioner Jeff Shelley said a sales tax increase would spread the cost across more people, including those who do not own property in the county.
“Not only are we going to get people who are passing through here, but everybody in this county will have to pay,” Shelley said. “We’ve had quite a few people that rent or are on government assistance; well, this will affect everybody. It’s the only way that I really see that it’s fair across the county.”
The board also approved four full-time and two part-time positions for the Scotland County Detention Center.