SWAN QUARTER — Hyde County commissioners on Monday dismissed a property tax appeal from an Ocracoke homeowner who said the value placed on her newly elevated rental home is too high, saying state law leaves the board no room to act.

“Until that law changes, we’re kind of — our hands are kind of tied,” Chairman Randal Mathews said.

Tax Appraiser Tommy Taylor said Linda Scarborough appealed the value assigned to her home after it was raised. He first set it at $373,000, then lowered it to $324,000. Scarborough believes it is worth about $250,000, a figure Taylor called “unrealistic.” The board first discussed the appeal at its October meeting, Mathews said.

Taylor pointed commissioners to two 2022 sales of smaller Ocracoke houses in the board packet. Scarborough’s house has double the square footage of each, he said, and at $324,000 it “fits in there as far as value goes, but it’s twice the square footage.”

He said that if the house were divided in half, each half would still fall in line with the other two sales. “I gave you the benefit with double the square footage,” he said.

The land on Scarborough’s lot is valued at $127,500, Taylor said, and that figure did not change. The increase came on the building, he said. “Where you gonna put the money if the land value is where it needs to be? You put it on the house,” he said. The two comparable properties carry higher land values, he said, so the Scarborough lot has already been treated favorably.

“You can take this house and move it to three other places on that island,” Taylor said, and each location would produce a different market value. He called the number now on the property appropriate. Asked by Commissioner Jeffrey Berry whether the family had a private appraisal, Taylor said not to his knowledge.

Jenny Scarborough, who lives next door, said the lot has no vehicle access or parking except across land she owns. She said the property line cuts through a septic tank shared by both homes. She said both factors hurt its value, and she questioned why the county used the reassessment to change the land value. Linda Scarborough said the family took its comparison figures from county tax records. She questioned why the building’s value rose so sharply after the house was raised.

Tax Administrator Donnie Shumate, who joined by phone, said appraisers must use comparable sales, not square-foot rates, and that Ocracoke’s market makes rates unreliable. He said the state constitution bars valuing year-round and short-term rental homes differently. Taylor said state law defines the standard as what a house would likely bring between a willing buyer and a willing seller.

Mathews said the board sympathizes but is bound by market value.

Commissioner Shannon Swindell said the issue is gaining attention statewide.

The board voted to dismiss the appeal.

County Manager Kris Noble said she and Shumate had considered valuing homes by the income they produce, but state statutes do not allow it. They will keep looking for ways to protect year-round residents, she said.

In other business, Noble told commissioners Hyde must find about $67,800 in unbudgeted local money this year to cover a shift in federal food assistance costs.

Noble said federal changes raised counties’ share of SNAP administration costs from 50 percent to 75 percent, effective Oct. 1. Based on 2026 figures, the added cost to Hyde is $67,813.02. She will seek a budget revision once the effects show up in county books. She asked for no action.

A second cost arrives Oct. 1, 2027. If North Carolina’s SNAP error rate stays above 6 percent, the state must repay part of the federal benefit costs, and it plans to recover that money by withholding county sales tax. The state’s 2025 rate was 7.36 percent. Every county would lose 0.75 percent of its sales tax allocation, which Noble’s figures put at $18,557.65 a year for Hyde. Together with the administrative shift, that brings the county’s estimated annual cost to $86,370.67.

Counties with payment errors would owe more. Hyde’s error rate in 2025 was zero, Noble said. At a 4 percent county rate, the county would owe another $98,974.15, for a total of $185,344.81.

“This is tough to swallow,” Mathews said of the SNAP changes. He said mandated services without matching funding are straining local taxpayers. “I’m through with that,” he said.

Commissioners also appointed Wesley Smith as interim local health director at the Board of Health’s request. Smith will work as an independent contractor for up to 24 hours a week at $60 an hour until a permanent director is hired. Either side can end the contract with 30 days’ written notice. He was not at the meeting, so his oath of office will be administered later. They also reappointed four members of the Ocracoke Board of Adjustment and added Steve Brook. Reappointed were Les Wooten, Joseph Ramuni, Jake Johnson and BJ Oelschlege.

The board approved two applications for Phase 3 funding from the Resilient Coastal Communities Program. One seeks up to $350,000 for design of flood protection projects at Ocracoke Island’s north end. The other seeks up to $200,000 for flood modeling and design in Lake Landing, with an emphasis on Engelhard. Grant Administrator Kelly Hoeltzel said both would prepare the county to seek construction money later. Mathews said the program has already brought nearly half a million dollars to Ocracoke.

Commissioners approved an agreement with the Albemarle Commission to help run a septic repair program funded by a $500,000 state award. Half is principal forgiveness for households below the state median income, and half is a loan. A full contract spelling out each side’s duties will follow. They also approved an amendment to the health department’s contract with Access East, which coordinates care for the county’s most complex Medicaid patients. Health Department official Sherry Harris said Medicaid raised its payment, so Access East’s fee rose in proportion.

Tax Collector Ryan Bishop reported October current-year collections up $231,947 from a year ago, with delinquent collections down $51,259. Four refunds were approved.

The board backed Operation Green Light for Veterans, with county buildings lit green Nov. 4 through 11, and approved three budget revisions as a group. Noble said one commissioner was absent for health reasons and asked for prayers for his recovery.