North Carolina law requires the County to present a revenue-neutral tax rate for comparison in a year when a property tax revaluation is conducted. Budget and Management Director Hyong Yi said the revenue-neutral tax rate for Mecklenburg is 5.13 cents below the FY2011 tax rate of 83.87 cents. The state provides guidance for the calculation.
Yi shared how the rate is calculated at the 3 p.m. BOCC Budget/Public Policy Workshop on April 12, 2011, at the Charlotte-Mecklenburg Government Center. According to North Carolina Statute G.S. 159-11(e): 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.
As an example, Yi, told the Board that for the owner of a $200,000 home, the tax bill at the presented revenue-neutral rate is $1,560.80. The tax bill for that $200,000 homeowner, using the current tax rate of 83.87 cents for every $100 of valued property, is $1,677.40.
A revenue-neutral tax rate must be presented for the Law Enforcement Service District, too, and staff will provide that calculation to the Board at a later date. The Board created the LESD, effective 1996, to finance and provide law enforcement services to the unincorporated areas of Mecklenburg County.
County Manager Harry L. Jones, Sr. will include a tax rate in his recommended budget to the BOCC on May 17, 2011. Ultimately, the BOCC sets the property tax rate for the County in the budget the Board approves in June. The FY2012 budget is for the period July 1, 2011 to June 30, 2012.
Other items presented to the Board on Tuesday included:
• A presentation of proposed fees and fee changes for FY2012 for the Health Department, Park and Recreation and Land Use and Environmental Services.
• A review of the County’s Managing for Results (M4R) accountability and performance measure, which includes business process management.
Visit the County’s official Website at www.MecklenburgCountyNC.gov for more information.