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This doesn't explain how Grandale Place tax bills were at 1.245, nor does all of this information answer my question as to why was Grandale's tax rate last year 1.42 and this year 1.245.
I am not asking WHAT the rate is, I am asking why the rate has seemingly gone down when all the articles I read were about an increase.
Sneezecake, this press release may help you understand it better. Durham County Government : News Releases
From the press release:
"2008 was a revaluation year for Durham County Government. The recommended budget proposes a countywide property tax rate of 71.55 cents — a 2.73 cents increase. The proposed increase is a 3.97% increase over the revenue neutral tax rate of 68.82 cents. For the owner of a home valued at $186,000, the increase (from revenue neutral) would be $50.78 yearly or $4.23 a month. "
Here's how I understand it. Last years tax rate was higher because the home values it was working off of was the value back in 2000. I think you already understood that bit. When the values were evaluated for this year, the tax rate was already scheduled to go down in order to keep tax revenue neutral. So the tax rate was scheduled to go down. Then some increases were added on, so the tax rate increased from the revenue neutral rate. Therefore, the rate is higher than originally anticipated, although it is lower than last year.
Sneezecake, this press release may help you understand it better. Durham County Government : News Releases
From the press release:
"2008 was a revaluation year for Durham County Government. The recommended budget proposes a countywide property tax rate of 71.55 cents — a 2.73 cents increase. The proposed increase is a 3.97% increase over the revenue neutral tax rate of 68.82 cents. For the owner of a home valued at $186,000, the increase (from revenue neutral) would be $50.78 yearly or $4.23 a month. "
Here's how I understand it. Last years tax rate was higher because the home values it was working off of was the value back in 2000. I think you already understood that bit. When the values were evaluated for this year, the tax rate was already scheduled to go down in order to keep tax revenue neutral. So the tax rate was scheduled to go down. Then some increases were added on, so the tax rate increased from the revenue neutral rate. Therefore, the rate is higher than originally anticipated, although it is lower than last year.
AHHHHHHH I see....so a revenue neutral rate decrease is scheduled in to the tax schedule already? This is the major factor I didn't know.
So what you're saying is that, to use round numbers...
House in Durham valued in 2000 at 200,000 and taxed at 1.5% for a tax bill of $3000
In 2008, the tax rate is pre-scheduled to drop to a certain point, say 1.0%, meaning that if that house was revalued at 300,000, then the tax bill is again $3000
But, Durham brass decides that the pre-set new rate is too low, so THAT is the figure they raise by whatever percent they choose, and that's where we are now?
So everyone that was complaining about a tax rate hike, they were complaining not about it going from 1.41 to a higher rate, but rather from their expected lower rate to a rate that was not quite so low (but still lower than what the rate was previously)
My next question is, when do they set this projected new rate? Or is it auto-generated by the re-valuations and then they work from that number?
The new rates have already been set. This table shows the final numbers. Durham County Government : Tax Rates
People should receive their tax bills within the next week or so. Payment is due by January, however you can sign up to pay it in monthly installments if you wish by calling the Tax Administrator's office at (919) 560-0300.
The new rates have already been set. This table shows the final numbers. Durham County Government : Tax Rates
People should receive their tax bills within the next week or so. Payment is due by January, however you can sign up to pay it in monthly installments if you wish by calling the Tax Administrator's office at (919) 560-0300.
Got it, though my question is:
When is the "revenue neutral" rate set (is it after valuations are complete and there is a 'mean value increase' determined) and is there anything for Durham (or any other city) that compels it to work from the revenue-neutral figure?
This is all great news for me, because as a new-home buyer in Durham, I was expecting that the stories of tax rate increases were off the 1.42 number, so I was calculating out on 1.5% when in actuality we're looking at 1.25% - I just saved $1000 in mental money!
When is the "revenue neutral" rate set (is it after valuations are complete and there is a 'mean value increase' determined) and is there anything for Durham (or any other city) that compels it to work from the revenue-neutral figure?
That sounds like a question for ... Bull City Rising! [insert trumpet flourish here]
Revaluations get done around the first of the year (in re-val years.) The City and County both set their budgets in the May-June timeframe.
Both governments traditionally publish what the revenue-neutral rate would be, but they're not held to it. Durham City taxes went up somewhere on the order of 10% over revenue neutral, largely due to the fall in sales taxes and permits/fees (building permits, etc.) due to the slowing economy. Sorry I don't have the numbers in front of me.
Revaluations get done around the first of the year (in re-val years.) The City and County both set their budgets in the May-June timeframe.
Both governments traditionally publish what the revenue-neutral rate would be, but they're not held to it. Durham City taxes went up somewhere on the order of 10% over revenue neutral, largely due to the fall in sales taxes and permits/fees (building permits, etc.) due to the slowing economy. Sorry I don't have the numbers in front of me.
HTH,
So it sounds like the revenue neutral standard isn't mandated, just something that they are supposed to make a good-faith effort to honor?
Thanks for the help guys...definitely 2 of my favorite co-Durhamites!
Does anyone know how this tax rate of 1.25 compares to Chapel Hill and Cary? I understand that Chapel Hill has a 1.8 tax rate and Cary has under 0.85 (appx). Is that correct? Also, these rates are applied to the assessed value. How is that value determined, and do they adjust that value based on recent sale prices? When we are looking at homes in the area, they never give the taxes in the MLS description - which is really annoying - so you know the price of the house and HOA but no clue on the taxes.
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When the values were evaluated for this year, the tax rate was already scheduled to go down in order to keep tax revenue neutral. So the tax rate was scheduled to go down. Then some increases were added on, so the tax rate increased from the revenue neutral rate. Therefore, the rate is higher than originally anticipated, although it is lower than last year.
