NCGS §159-11(e) provides that in each year in which a general reappraisal of real property has been conducted, the budget officer shall include in the budget, for comparison purposes, a statement of the revenue-neutral property tax rate.
The revenue-neutral property tax rate is 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 reappraisal had occurred. Revenue neutral does not necessarily mean that taxpayers will be paying the same amount of property tax for FY2023 that was paid during FY2022.
To calculate the revenue-neutral tax rate, the budget officer shall first determine a rate that would produce revenues equal to those produced for the current fiscal year, and then increase the rate by a growth factor equal to the average annual percentage increase in the tax base due to improvements since the last general reappraisal. This growth factor represents the expected percentage increase in the value of the tax base due to improvements during the next fiscal year.
The budget officer shall further adjust the rate to account for any annexation, de-annexation, merger or similar event. The Assessor does not have the authority to establish the revenue neutral tax rate. Decisions regarding the establishment, computation and implementation of the revenue neutral tax rate are made at the Governing Board level.
Henderson County’s tax rate for FY2023 is .561 per $100 in value. For real property, this rate is based on the 2019 reappraisal values.