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Cornelius News

County leaders signal a 1-cent tax rate increase

June 3. By Dave Vieser. Breaking from tradition, Mecklenburg County Commissioners voted May 30 to reduce the proposed county tax increase in the 2025 budget from 1.5 cents to a penny.

The straw vote has frequently found the county leaders supporting the tax rates proposed by the county manager, but not this year.

A majority of the commissioners decided that a 1.5 cent increase would be simply too much for taxpayers on the heels of last years revaluation.

County taxes represent about 75 percent of the annual property bill for Cornelius property owners. If the final rateis the same as the straw vote for the county, the new rate for Cornelius taxpayers for their county tax on a home valued at $500,000 will be .4831, which amounts to $2,415.

The town rate is the same as last year, .1731 which amounts to $865, for a home valued at $500,000.

Thus, total property taxes will be $3,280.

Where is the money coming from to reduce the proposed tax rate rise?

County commissioners want to pull approximately $14.7 million from the county fund balance, sometimes called a rainy day fund, to lower the tax increase.

The plan, proposed by Commissioner Susan Rodriguez-McDowell, and proposed over the objections of County Manager Dena Diorio was approved by an unofficial straw vote of 7-2.

Funds generated by the additional taxes in the county budget through a one cent rate increase would be applied to reduce the debt generated by a countywide school improvement program approved last year.

 Could the proposed tax rate be changed again?

Technically, yes. Thursday’s vote was a straw vote and the final vote on the proposed 2025 county budget will be conducted on Tuesday, June 4.

It would be, however, unlikely that the rate would be changed yet again.

When will the new tax rate go into effect and what happens if taxes are not paid on time?

The adopted town and county budgets go into effect on July 1. Tax bills reflecting the new 2025 rates will be sent out in August.

A 2% interest fee is assessed when a property becomes delinquent (early January 2025) and .75% interest fee is imposed each additional month until taxes are paid in full.

Discussion

One Response to “County leaders signal a 1-cent tax rate increase”

  1. One cent increase on what..$1, $10,$100, $1000.. I have heard this question from numerous friends and neighbors. I don’t think we are the only ones to be puzzled.

    Posted by Nancy Brand | June 3, 2024, 3:55 pm

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