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Bill Summary · HB 338

Summary — HB 338 (Town of Oak Island / Deannexations)

Status: Reported Favorably, Committee Substitute
Introduced: Filed Nov 12, 2024
Sponsor: Rep. Miller (Local)
Subject tags: Annexation / Deannexation; Municipal boundaries; Local government; Brunswick County

Main purpose

HB 338 removes a specific set of parcels from the corporate limits (deannexes them) of the Town of Oak Island (Brunswick County, NC). The bill updates municipal boundaries and the treatment of municipal taxes and liens for those parcels.

Key provisions

  • Deannexation: The act removes the following Brunswick County parcel identification numbers from Oak Island municipal limits:
    • 220NA002; 220NA011; 220NA014; 220NA019; 220NA021; 220NA04401; 220NA053; 220NA082; 220NA101; 220NA104; 220NA110.
  • Liens preserved: The act explicitly states it has no effect on the validity of any Town of Oak Island liens (ad valorem taxes or special assessments) that were outstanding before the effective date. Such liens may still be collected or foreclosed as if the property remained within town limits.
  • Tax treatment / effective dates:
    • Effective date: June 30, 2025.
    • Property located in the described territory as of January 1, 2025, will no longer be subject to municipal taxes for taxable years beginning on or after July 1, 2025.

Who is affected

  • Property owners of the listed parcels: will be removed from town jurisdiction and no longer assessed municipal property taxes for taxable years beginning July 1, 2025 and after (subject to the Jan 1, 2025 status rule).
  • Town of Oak Island: loss of municipal tax revenue and jurisdiction over the listed parcels; municipal services, zoning enforcement, and planning responsibilities will no longer apply to those parcels after deannexation.
  • Brunswick County: county tax office and service planning will need to reflect new boundary; county may assume any municipal service responsibilities not otherwise arranged.
  • Creditors / lienholders: any outstanding municipal tax liens or assessments created before the effective date remain collectible.

Fiscal and administrative impacts

  • Municipal revenue: likely reduction in Oak Island’s property tax receipts corresponding to the deannexed parcels for tax years beginning on/after July 1, 2025.
  • Administration: county and town clerks/tax offices must update maps, tax rolls, service territories, and notify affected owners; enforcement of pre-existing liens continues under the bill.
  • The bill does not itself specify transition of municipal services (water, sewers, solid waste, police) — such operational effects would be managed locally or by separate agreements.

Procedural / timeline notes

  • Committee action: Reported Favorably, Committee Substitute (status shown).
  • Effective June 30, 2025; tax consequence applies to taxable years beginning July 1, 2025, for properties in the territory as of Jan 1, 2025.
  • The bill is a local act affecting only named parcels in Brunswick County.

If you want, I can:
- Map the listed parcel IDs to street addresses (using public Brunswick County tax records);
- Draft a checklist for Town/County administrative steps to implement the deannexation; or
- Summarize likely impacts on municipal services and recommended transition actions.

Compiled from official sources — confirm details with the bill’s official record.

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