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Commissioners adopt 'revenue neutral' fiscal policy
By Lynn Hotaling
In the wake of a state-mandated revaluation that has sent county property values skyrocketing, local officials Tuesday (Feb. 24) pledged to hold the line on taxes by adopting a fiscal policy Commissioners' Chairman Stacy Buchanan termed "revenue neutral."
By means of a resolution that passed unanimously, Jackson County commissioners promised that they will reduce the tax rate in the budget for the upcoming fiscal year to "an amount that will generate the same collective amount of tax as the current budget," and that the county will "derive no additional revenue from the revaluation process."
‘In wake of revaluation, county leaders pledge to hold the line on taxes’
Moreover, county leaders resolved to continue that policy, "insofar as it is prudent and practical," for the next three fiscal years as well.
In other words, commissioners promised that they will conduct county business for the next four years within the constraints of the approximately $17.5 million generated in ad valorem taxes during the current fiscal year.
According to the resolution passed Tuesday night, the only additional tax monies added to county coffers as a result of the recent revaluation will be that "ordinarily gained through new construction."
Commissioners estimate the tax rate for the next year will be 35 cents per $100 valuation, a 13-cent reduction from the current 48-cent rate. If a 35-cent tax rate is adopted, it would mean that property owners with land/structures valued at $100,000 would pay $350 as opposed to the $480 per $100,000 billed this past year.
In discussion preceding the vote to adopt the resolution, commissioners indicated their wish to reassure county taxpayers that the impact of soaring property values will not be devastating to the county's residents.
"We have a lot of citizens who are uneasy," Buchanan said. "I think a statement from this board as to where we stand and how we want to conduct ourselves sends a message that may ease some feelings."
"Overall, the resolution is a good idea," said Commissioner Eddie Madden. "(It will provide) clarification. I think there are misunderstandings about the impact (revaluation) will have.
"It's a good thing - in my opinion - to have a high appraisal, if taxes don't go up."
Buchanan reiterated that some $17.5 million was collected countywide this year.
"We're saying we'll collect that this year - plus new construction - and we're also saying we'll do that for the next three years," he said.
"I don't think (this board's) desire is to raise taxes, and I think this resolution would send that message to the people," Buchanan said.
"I think it sends a clear message that we're serious about keeping taxes low," Madden said.
In addition to pledging to hold the line on taxes, commissioners promised Tuesday that they would work with local state legislators and the N.C. General Assembly to devise property tax reform measures that will "ease the property tax burden on full-time resident, owner-occupied properties ... that will mitigate the effects of rapid market-value increases," according to the resolution.
"(This resolution) is also a proactive stance," Buchanan said. "We'll seek legislative relief for our full-time residents, possibly through a homestead exemption.
"What we're trying to do is let the public know we understand there's a problem with the rapid growth we're experiencing," Buchanan said Wednesday morning. "We're in a market that's driving up the value of property at an alarming rate.
"We want to work with the Legislature to develop a process similar to that used in other states to soften the blow for year-round residents who contribute so much to the community.
"We hope to do this through some sort of discount in the tax rate for full-time residents, who also pay local sales tax and North Carolina income tax.
"We need to protect those who have invested so much 'blood and sweat' equity to help make our community a better place to live," Buchanan said.
Commissioner Roberta Crawford echoed that sentiment.
"I really want us to keep working with the Legislature to get our residents some relief," she said.
The increase in property values under the recent revaluation, which Jackson County performs every four years, caught many residents by surprise.
Commissioners said they'd received numerous calls since the notices were mailed last week. The value of many parcels, especially undeveloped land, more than doubled as result of the new round of appraisals.
The entire revaluation process is state-mandated, said Bobby McMahan, county tax assessor.
"This is not something that's pulled out of the blue," he said.
State statutes say each of North Carolina's 100 counties must appraise at market value and must use the same measures to evaluate each parcel, McMahan said.
State officials review the results, and if a county falls off that standard, they will disallow the results, McMahan said.
"You can't fudge it. You have to obtain market value," he said.
A lot of data is collected to determine market value for Jackson County's 33,000 parcels and 18,000 structures, McMahan said.
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