As Halifax County commissioners begin budget deliberations for the upcoming fiscal year, they do so with plans to enact a 70 cents per $100 tax rate — a tax rate adjustment that is based on results of the recent property revaluation.

With total revenues over expenses at $982,008, the board not only set the proposed tax rate at the 70-cents mark but agreed to use fund balance to give full-time employees a $1,000 bonus and part-time employees a $500 bonus.

The board also agreed to continue to use the ad valorem method of tax collection instead of switching to the per capita method.

County Manager Dia Denton Monday in her presentation presented the board with a $57,940,314 financial plan with a proposed 71 cents per $100 tax rate.

The board opted to go with a 70-cent rate. The current tax rate is 76 per $100.

In supporting the proposed 70 cents per $100 tax rate, Commissioner Linda Brewer said, “With the revaluation a lot of these people really did have to pay large increases. I’m not questioning the revaluation. I have no problems with it but some of them are going to see a pretty substantial change and for a lot of the people that I have talked with they don’t only have a county tax, they have a city tax, they’ve got a school tax. It’s just not what we do that impacts a lot of people — it’s everything in combination.”

In her discussion of the tax rate, Brewer also mentioned the upcoming jail project and earlier discussions of the impact it could have on future tax rates. “By the time you get ready to really get into production of the jail, you’ve got a lot of debt falling off so that right there is going to open you up to some funds that you would be able to apply to the cost of that detention center.”

Board Chair Vernon Bryant said, “I’m a team player, whatever the majority of the board wants to do I will certainly do it, but I really like the 70 (cents) and I just think we need to take the challenges and see what happens. When the time comes for the jail and whatever else, we’ll just deal with it.”

• Click to open image! Click to open image!
• Click to open image! Click to open image!
• Click to open image! Click to open image!
• Click to open image! Click to open image!
• Click to open image! Click to open image!
• Click to open image! Click to open image!
• Click to open image! Click to open image!
• Click to open image! Click to open image!
• Click to open image! Click to open image!
• Click to open image! Click to open image!
• Click to open image! Click to open image!
• Click to open image! Click to open image!
• Click to open image! Click to open image!
• Click to open image! Click to open image!
• Click to open image! Click to open image!
• Click to open image! Click to open image!
•  

Revenue-neutral

The North Carolina General Assembly describes 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 produced for the next fiscal year by the current tax rate if no reappraisal had occurred.

Denton said this morning because of the revaluation the county’s revenue-neutral, which the county is required to disclose, is 67 cents. The 67 cents ties in to the 27.5 percent average growth county-wide. “That’s where the 67 cents comes in. In non-revaluation years we saw growth, from your listings, from commercial development, economic development, sales taxes — we’ve seen growth in those years to absorb some increases we’ve done. The majority of our funds come from property taxes. When you do revenue-neutral it is a complete reset, you have a new baseline.” 

She said, “Had we not had a revaluation this year we would have seen more growth. In revaluation years you wipe out any of that growth you would have seen in a non-revaluation year. Technically it’s an increase, I would agree with that, but I would also call it an adjustment because it’s more fair to call it an adjustment when you have a new baseline.”

Next steps

At the board’s May 6 meeting commissioners will discuss the school and fire taxing districts.

• Click to open image! Click to open image!
•  

Denton will present her formal budget presentation on May 20 at 9:30 a.m. After that the budget lays on the table for at least 10 days and then the public hearing will be on June 3 at 9:30 a.m.

Adoption is scheduled June 17 at 9:30 a.m.