RALEIGH — Local taxes and fees in Rocky Mount totaled about $1,571 per person in the 2011 budget year. The city ranked No. 25 out of North Carolina’s 34 largest ranked cities in local government costs per person, according to a new John Locke Foundation report. Wilson, at $1,842 per person, ranked No. 14.
Rocky Mount dropped two spots in the latest rankings, while Wilson climbed four spots from its 2010 ranking.
Jacksonville, Indian Trail, Thomasville, Asheboro, and Goldsboro all had lower tax burdens among the larger cities. Goldsboro ($1,347) ranked No. 30.
Mooresville, Chapel Hill, Charlotte, Wilmington, and Durham topped the rankings of combined city and county costs per person. The list compared 34 municipalities with at least 25,000 residents.
Among North Carolina’s 92 ranked medium-sized municipalities, Roanoke Rapids ($1,506), Nashville ($1,376), and Tarboro ($1,373) had local revenues per person calculated near the state median.
Four area counties ranked among the state’s top 20 for heaviest tax burdens, when that burden was expressed in terms of local taxes and fees as a share of income: Wilson (5.38 percent), Edgecombe (5.14 percent), Warren (5.13 percent), and Pitt (5.08 percent). Most other area counties had tax burdens closer to the state median of 4.15 percent: Northampton (4.50 percent), Nash (4.09 percent), Halifax (4.08 percent), Wayne (3.87 percent), Franklin (3.82 percent), and Johnston (3.80 percent). Greene County (3.10 percent) ranked among the 25 counties with the lowest local tax burdens.
By The Numbers: What Government Costs in North Carolina Cities and Counties FY 2011 is the 15th such report published by the John Locke Foundation. Lowrey used the most recent data available from the State Treasurer, Bureau of Labor Statistics, and Bureau of Economic Analysis to construct rankings of local government cost on a per-person basis. For counties, he also constructed rankings on a share-of-income basis.
Lowrey continues to highlight a continuing problem that helps skew data. Four counties and nearly 40 municipalities missed state deadlines to file their State Treasurer’s Annual Financial Information Report.
“Whether those local governments filed the statements after the deadline or not, the information still is not available from the treasurer’s office,” Lowrey explained. “Without those reports, By The Numbers cannot include local tax burdens for those communities. Complete reporting would result in a somewhat higher combined county municipal median tax burden.”
Lowrey also repeated his annual warning against comparing the relatively high per-capita tax numbers in resort communities to those in other N.C. cities. Communities with larger numbers of second homes and resorts — combined with small year-round populations — will see larger per-capita tax burden figures, he said.
Among the 10 most populous counties, Durham (5.86 percent), Mecklenburg (5.31 percent), Guilford (5.19 percent), New Hanover (5.12 percent), and Buncombe (4.75 percent) ranked among the top 25 N.C. counties in average cost of local government. Wake (4.60 percent), Gaston (4.56 percent), Forsyth (4.56 percent), and Union (4.22 percent) ranked near the middle of the pack. Cumberland (3.22 percent) ranked No. 85 of the 96 ranked counties.
North Carolina collected $21.9 billion in state tax and fee revenues from July 1, 2010, to June 30, 2011. That’s 6.3 percent of state residents’ personal income. Local governments collected an additional $15.2 billion in property, sales, and other taxes and fees. That’s another 4.4 percent of personal income.
“Combined, they represent a state and local tax and fee burden of 10.7 percent,” Lowrey said. “Federal collections raise the total tax burden on North Carolinians to approximately 27.3 percent of personal income, on average.”
Lowrey stresses that a high cost-of-government ranking in the By The Numbers report does not equal a judgment that a city or county is governed poorly.
“By The Numbers is a tool that represents factual data only, without editorial comment or bias,” Lowrey said. “The best way to compare your city or county to others is to find municipalities or counties of similar size and demographics.”
“This report helps taxpayers evaluate whether the services they receive from local government merit what they are paying for them,” he added. “We hope taxpayers will continue to ask about the proper role of local government and its relationship to the state. It’s important to keep these discussions alive and to ensure our local leaders remain accountable to taxpayers.”
The John Locke Foundation Policy Report, “By The Numbers: What Government Costs in North Carolina Cities and Counties FY 2011,” is available at the JLF website. For more information, please contact Michael Lowrey at (704) 569-4269 or [email protected]. To arrange an interview, contact Mitch Kokai at (919) 306-8736 or [email protected].