In order to be able to pay for their regular operations and maintenance, special districts in North Carolina generate their revenues through three key sources; benefit assessments, taxes, as well as service charges. Taxes can be further subdivided into two categories. This article lists all of these major sources.

1a. General taxes

When some states amended their constitution by having proposition 13 (1978) passed, they stopped separate property taxes being levied by local officials. Rather, county officials are to collect a 1% uniform property tax rate then allocate the resultant revenues to the other local governments, using complex formulas in state law. Proposition 218 (1996) constitutionally barred districts from levying general taxes of their own.

1b. Special taxes

Virtually all districts can impose special taxes if they acquire the approval of 2/3 of voters. Sometimes called ‘parcel taxes’ also, the special taxes are, normally a flat amount for every lot or acre of ground. Some fire protection districts depend on two categories of special taxes – both of which are approved by voters of the districts – for most of their yearly revenues. Some owners of properties are quite familiar with these parcel taxes that districts are allowed to impose under the Mello-Roos Act. There are government resources on the appropriate websites that offer details concerning which districts are allowed to impose special taxes.

2. Benefit assessments

Lots of varying districts are allowed to charge benefit assessments to meet their expenses for the operations and maintenance of public service programs and facilities that benefit property directly. This is a key source of revenues for most special districts in North Carolina. Proposition 218 of 1996 required the number of assessments to reflect the ‘proportionate special benefit’ which the property actually receives. One major difference that exists between taxes and assessments is that the owners of properties that are affected must give their own approval for any benefit assessments in a ballot election that is weighted while special taxes need the approval of voters. There are several and varying government resources online that offer a lot more information regarding benefit assessments by districts.

3. Service charges

Districts that run one enterprise activity or the other or those that deliver particular services are allowed to pay for their operations, management, and activities with the charges they put on their services. The majority of municipal water districts from around the entire state generate get, the revenue they require to manage their community’s water system from water rates. Likewise, irrigation districts also send bills to their electricity clients and customers. Hospital charges are the source of revenue that supports hospital districts throughout the state. Between 2007 and 2008 alone, enterprise revenues that were generated by districts in the state totalled tens of billions.

In concluding, when it comes to the generation of their required revenue for operations and maintenance, even some non-enterprise special districts in North Carolina collect charges for their services to be used in paying for their special programs. For instance, some area recreation and park districts charge green fees from any members of their community that want to play on their golf course. These are the foremost ways by which these districts generate their revenue.