Wake Aims to Hold Tax Bills Steady After Values Rise

Raleigh, N.C. — The Wake County Board of Commissioners on Tuesday set itself a target tax rate that would protect many homeowners from seeing their bills rise because of increased property assessments and could even lower taxes.

Most Wake County homes are worth more because of a revaluation completed last year. In a move to have the county stick by a revenue-neutral budget, however, the commissioners said they want to lower the tax rate to balance that.

Tax bills are the result of multiplying the assessed value of a property times a tax rate, usually some amount per hundreds dollars of value. If values go up and the tax rate goes down enough, the resulting bill can stay the same or even go down.

Currently, taxes on a $200,000 home are about $1,300. Next year, the commissioners said, that bill would drop to about $1,000 with their target tax rate of 53 cents per $100.

Wake County Commissioner Paul Coble led the push to keep property taxes nearly the same.

“I just think this addresses a number of concerns from people who weren't going to be able to pay their taxes on their own,” Coble said. “We're going to recognize that we have to live within a budget just like those who are affected by revaluation.”

A majority of commissioners signed off on the idea of directing the county manager to draw up a budget with the target tax rate.

However, Commissioner Betty Lou Ward, who voted against it, said she's worried it's a promise commissioners won’t be able to keep.

“It concerns me that we're taking a vote that we may have to go back on in a few months,” Ward said.

Others said that if they do have to change the goal because of other factors, it will at least be a public statement.

“We'll be transparent,” Joe Bryan, commission chairman said.

The bottom line will be clearer later this year, when commissioners will have to decide if they need more money for services.

If you live in any of Wake County's 12 cities or town, the value of your home is subject to each local government’s tax rate, too, and the commissioners say they will urge the communities to lower their tax rates as well.

The county lists current tax rates on its Web site.

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Taxing a homeowner on the re-evaluated value of their home is the same as the IRS trying to tax someone on the estimated value of their stock holdings. It is not your money until it is sold and that is why the IRS DOES NOT tax anyone on the shares they own, only on the shares they sell or the dividends they receive during the year from the shares they own. Increasing taxes on the perceived or potential value of their homes is not a fair thing to do. Homeowner taxes normally go up every year and this is to be expected, but taxing someone on a increased valuation that DOES NOT put a penny in someones pocket is just wrong.

imtiredofit
January 24, 2008 10:40 a.m.

Leonardo -

I still say you have to pull your head out. The fact of the matter is that if you believe that a reval of the property is the way to do it - you are nucking futs.

If you want people to pay their fair share, then do it based on income - not some number that is imagined. If you want everyone to pay their fair share then tax the property so that everyone pays the same amount. A fair share of allowing a poor family get jerked around because they can't afford a $2,000 bill because of the inflated number is not fair. PERIOD.

What you are saying is that it is perfectly fair for people re-evaluated at that rate based on a booming real estate market. You want fair - everyone pay $1.98. Don't blow smoke here screaming that if you own property you deserve your share - because your basing it on an inflated idea of fair.

TheAdmiral
January 23, 2008 2:18 p.m.

Leonardo

I have no problem with the revaluations. Property values do change and if the only mechanism that the county used for tax purposes was to only adjust the mil rate forever, things would get wildly out of skew from one tax payer to the next. My entire problem here was this story as currently written would tend to make a lot of people believe their next tax bill is not going to change very much. If they do set the new rate at 53, the majority of homeowners in Wake county will see a significant tax increase. Mine looks to be about a 22 per cent increase. Others will get an even higher increase. This story does not convey that; it sets the opposite tone instead. I think it is better for the Commissioners overall if a more accurate portrayal is put forth by the media. Otherwise, when the new bills come out they will be hearing from a lot of angry people.

whatelseisnew
January 23, 2008 2:16 p.m.

Leonardo -

TheAdmiral
January 23, 2008 2:11 p.m.

tmedlin -

The lawyer for the builder stated that since it was a new home, it was not required - the inherent value of the property the builder put on it was what the took at face value.

I am not stupid. I can drive down a road and guess what a house is worth. The appraisal I had paid for put it at what I paid for it, not the $50K the county just dubbed it was worth.

TheAdmiral
January 23, 2008 2:10 p.m.