Revenue Neutral Tax Rate In Nc

Information originally presented on november 14 2014.

Revenue neutral tax rate in nc. It is intended to make the property tax reappraisal and rate setting process more transparent but instead it often muddies the waters. Of the twenty four counties that revalued property nine calculated revenue neutral rates that were higher than their adopted tax rate in the prior year thirtee n calculated a revenue neutral rate that was less than the adopted tax rate in the prior year and. The rate is required to be calculated and published by local governments but need not actually be adopted for the coming fiscal year. What does it mean when we talk about a revenue neutral tax rate.

North carolina general statutes define it as the rate that is estimated to produce revenue for the next fiscal year equal to the revenue that would have been produced for the next fiscal year by the current tax rate if no revaluation had occurred. The 2003 general assembly in g s. The revenue neutral rate is not property specific. This trend continued in 2018.

Defines the revenue neutral property tax rate as the rate that is estimated to produce revenue for the next fiscal year equal to the revenue that would have been. The revenue neutral tax rate is a bundle of contradictions. Publish the revenue neutral tax rate in years when there is a general revaluation of real property. Under this revenue neutral rate our hypothetical 300 000 home if it increased by 20 in value would have a tax value of 360 000 and a tax payment of 3 450 60 or 26 10 less than the year before despite the 20 increase in taxable value.

The revenue neutral rate in raleigh is 3585 for a total rate of 9585 per 100 dollars of valuation for a raleigh property owner. Changes in tax liability for individual properties depend on two factors. This revenue neutral rate serves as the starting point for fiscal year 2020 2021 budget deliberations and must be reported in the fiscal year 2020 2021 operating budget but it may not ultimately be adopted. Download pdf 95 55 kb.

159 11 requires each taxing unit to publish a revenue neutral property tax rate as part of its budget for the fiscal year following the. Pdf of worksheet for calculating the tax rate to remain revenue neutral during reappraisal of property tax values within a jurisdiction. Learn more about this concept by reviewing this info sheet by the unc school. A revenue neutral rate provides taxpayers a benchmark against which they can compare a proposed post revaluation tax rate.

It is intended to make the property tax reappraisal and rate setting process more transparent but instead it often muddies the waters. The rate is required to be calculated and published by local governments but need not actually be adopted for the coming fiscal year. Amends gs 15911 as title indicates.