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home : archive : archive May 18, 2022


4/21/2022 4:46:00 PM
your QUESTIONS
Adobe Stock photo  |  Based on the county’s recent property revaluations, the towns of Oak Ridge, Summerfield and Stokesdale realized an average increase of 23.5 to 34.2% in commercial and residential property value. The effect of this increase on each town’s revenue will depend upon whether its town council votes to change the property tax rate (or in Stokesdale’s case, to charge a property tax, since the town does not currently do so).
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Adobe Stock photo | Based on the county’s recent property revaluations, the towns of Oak Ridge, Summerfield and Stokesdale realized an average increase of 23.5 to 34.2% in commercial and residential property value. The effect of this increase on each town’s revenue will depend upon whether its town council votes to change the property tax rate (or in Stokesdale’s case, to charge a property tax, since the town does not currently do so).
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Q I had a thought as this "Notice of Real Estate Assessed Value" came so quietly and colorfully to my mailbox and I opened and read it - what does this huge uptick in property value mean for the revenue of our local towns?


A First, Stokesdale does not charge a property tax, so despite the 34.2% increase in assessed values of commercial and residential property within the town, its revenue will not be impacted - unless the town council votes to levy a property tax next fiscal year, which is very unlikely.


Oak Ridge has a property tax of 8 cents per $100 property valuation and Summerfield has a property tax of 2.75 cents. If those tax rates remain the same for the 2022-23 fiscal year, the 23.5% to 24.1% increases in assessed property values in those towns (see chart on p. 4) would have a significant impact on revenue.


Also, Guilford County uses the ad valorem method of sales tax distribution, which is based on each town's property tax, so changes in a town's property tax rate would also impact the sales tax revenue it receives. Again, because of the ad valorem method of sales tax distribution the county uses, since Stokesdale does not levy a property tax it also does not get any share of sales tax collected on its citizens.


All three towns have begun budget planning for the fiscal year 2022-2023 that begins July 1. Stokesdale council members, who serve as the town's budget committee, have indicated they remain opposed to levying a property tax on their citizens. The finance committees for Oak Ridge and Summerfield, which are made up of staff members, council member liaisons and citizen volunteers, have not announced whether they will recommend a change in their town's property tax rate.


Above is a chart showing the total property tax valuations (commercial and residential combined) by town for 2021 and 2022, as well as the percentage of increase as a result of the recent property revaluations.






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