As the conversation around incorporating Bethlehem, NC gains traction, it's essential for our community to fully understand the implications of such a decision. With a population of 8,500 spread over 23 square miles, the questions of costs, governance, and service provision are more pertinent than ever. Drawing from tax data and insights from similar North Carolina towns, here are some compelling reasons why incorporation may not be the best path for Bethlehem.
21 out of 553 Incorporated towns in NC have a tax rate of $.05 or lower. That is 4%...and the data shows that $.05 has increased over time across the board. There are only 2 towns formed since 2001 with $.05 tax rate, both in Davidson County
1. Stable Communities Stay Unincorporated
Recent data from the NC Department of Revenue shows that the number of incorporated towns in North Carolina has only grown slightly, from 319 in 2020-2021 to 322 in 2024-2025. This slow increase indicates a preference among many communities to remain unincorporated. By avoiding incorporation, these communities enjoy the financial flexibility and governance oversight provided by county management. For Bethlehem, sticking with the existing system may be the most beneficial option.
2. Incorporation Often Means New (and Increasing) Taxes
The experience of other newly incorporated towns suggests that while initial tax rates may be low, they often do not remain stable. For instance, towns in NC like Bolivia and Casar started with tax rates of 0.05 or less, but these rates have increased significantly over time. Casar’s tax rate doubled from 0.05 to 0.10 in just four years. Incorporation could lead to similar scenarios in Bethlehem, where residents might face higher taxes to support municipal services that were previously covered by the county.
3. We’re Already Covered by County Services—Why Double-Pay?
Incorporating Bethlehem would require the town to take on responsibilities for services already provided by the county, such as law enforcement, fire and rescue, building inspections, and zoning. This duplication of services could mean that residents are paying twice—once through county taxes and again for town-provided services. Such redundancy does not offer significant benefits and could lead to unnecessary financial strain on our community.
4. A Cautionary Tale for Small Towns
Examining the financial histories of small towns like Bolivia, Belwood, and Fallston reveals a common trend: as expenses rise, so do municipal tax rates. While these towns managed to keep their rates low initially, that stability is often short-lived. With increasing service demands and administrative costs, Bethlehem could find itself facing similar pressures to raise taxes in the future.
5. Comparison with Similar Towns
The Bethlehem for incorporation group plans to add a municipality rate for all 8,500 Bethlehem residents. That is 23 square miles. Looking at other towns to compare to in North Carolina can provide insights into what Bethlehem might experience post-incorporation:
Alamance, NC: With a population of approximately 1,040 and an area of 0.8 square miles, Alamance offers basic services, but its residents still face the reality of increased local governance costs.
Bolivia, NC: With about 150 residents over 0.7 square miles, Bolivia relies on Brunswick County for essential services, indicating that smaller populations often struggle to sustain municipal needs effectively.
Connelly Springs, NC: Despite a population of about 1,700 and 3.3 square miles, this town relies heavily on county-level management for public safety and essential services.
Midway, NC: Serving a population of approximately 5,100, Midway has greater administrative responsibilities, which could translate into higher costs for residents.
Unionville, NC: With around 7,300 residents and 28 square miles, Unionville can offer more services, but this also comes with higher taxes and administrative complexities.
These examples highlight a range of service levels and population densities that Bethlehem would have to navigate if it incorporated. Many smaller towns are content with county oversight, benefiting from cost efficiencies while avoiding the burdens of local governance.
Conclusion: A Call for Caution
Incorporating Bethlehem, NC, may seem appealing at first glance, but a deeper analysis reveals significant potential drawbacks. From increased taxes and redundant services to lessons learned from neighboring towns, it is crucial for our community to weigh these factors carefully. Maintaining our unincorporated status may allow Bethlehem to continue thriving under county services while keeping our taxes manageable and our governance flexible. Before moving forward, let’s have open discussions about the implications of incorporation and ensure our decision reflects the best interests of all residents.
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