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So we all know our Wake County property tax values will be revised at the end of the year. But it disturbs me that there will also be a separate decision on whether the system will remain revenue neutral. I always though this was some sort of 'law' here in Wake County. Does anyone know how this decision is made or changed? It could have a BIG impact on property owners.
"Commissioners likely will decided in the spring whether they will adopt a “revenue neutral” policy, which means they would lower the county property tax rate to offset higher real estate values. Doing so helps ease the financial burden on homeowners."
I'm pretty sure it's been gone over before, but the real estate values and the tax rates are two differnt things usually decided at two differnt times.
The assesment is supposed to be fact based and objective. The annual budget and the resulting tax rates are political and subjective, just as they are every year.
Usually, they do try to calculate a revenue neutral overal tax rate and then adjust the budget as needed from there, but in addition to whatever Wake does, each town and city must also have the same discussion at their legislative body. Also, bonds have been passed in various municiplaities and the county that will require tax rates to increase in future years or other services will need to be cut.
Also, no matter what, homes in an area with increasing values (pretty much anything inside the Raleigh Beltline or even near it) will see the total amount of taxes they pay go up. Homes with decreasing values, if there are any left in the county, will probably see their taxes go down.
Further complicating it and I'm sure causing some weird conditions to occur is that the last assessment was done at virtually the top of the market, which dropped very soon after. People have spent several years with the apparent value of their homes less than tax value. This next round is hitting when most houses are back at their 2008 values or even higher so if anyone is somehow expecting relief from a high valuation they are going to be disappointed.
Of course logic will never stop news organizations from getting out in front of a story like this early and stirring the pot with bits of info cherry picked for views and clicks.
Last edited by Sherifftruman; 09-09-2015 at 08:34 AM..
I expect to see a bump in taxes, via a higher assessment and a lower rate. They just will not lower the rate enough to render the results "revenue neutral."
It wasn't "revenue neutral" in 2008, either.
And, I am confident that some of the municipal increases in 2015 were to get in before all the sturm und drang sure to come of 2016 reassessments.
So, my impression of revenue neutral means that they take the entire county budget, then divide it by the total of all the assessments to calculate the new tax rate. This would mean that the increase in tax base via more people buying new homes would help to keep the tax rate down. We'd get an increase because the budget will increase, but a lower rate would occur thus damping the rise. So let's hear it for revenue neutral!
My taxes went up $124 this year, and $97 the prior year. While reassessment may not cause a big bump in taxes, I do expect my bill to be higher again next year.
the values are effective Jan 1.
the budget comes out June 30.
the 2016-2017 budget will be greater than the current budget.
so, it won't be revenue neutral. it may be mostly neutral.
it's never been law, just smart politicking to prioritize it, lest your head get rolled for a huge tax increase.
So, my impression of revenue neutral means that they take the entire county budget, then divide it by the total of all the assessments to calculate the new tax rate. This would mean that the increase in tax base via more people buying new homes would help to keep the tax rate down. We'd get an increase because the budget will increase, but a lower rate would occur thus damping the rise. So let's hear it for revenue neutral!
That's not what it means or how it works.
They are taking into account new homes and commercial buildings adding to the tax base all year every year. The re-evaluation is once every 8 years.
Sheriff, why is that not within what I stated as my impression? Obviously, the new homes and buildings are added every year, and I'm guessing that the rate adjusts in a minor way each year. Can you explain the way it 'really' works?
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