Final figures from the Guilford County Tax Department’s 2022 reassessment are in, and they show incredible growth in property values over the past five years – and a huge boon for the Guilford County Board of Commissioners .
According to final figures from county staff, if the Guilford County Board of Commissioners leaves the county tax rate at the same level, county taxpayers will collectively pay an additional $92 million in taxes due to the recent reassessment of all properties in the county.
This is a huge and unprecedented increase from a revaluation. The county now does reassessments every five years. However, even when the county went eight years between property reappraisals, it never saw this kind of appreciation.
Guilford County now also knows the “income neutral tax rate” – the tax rate at which, taking into account the appreciation and reassessment of the property, the county would have received the same amount of money than the previous year.
When a Republican majority ran the Board of Commissioners, Republicans adopted a revenue-neutral tax rate after a reassessment, which meant that property owners’ tax bills remained largely the same. If the Democratic-led council did the same this year, property owners in the county would benefit from a tax rate reduction of nearly 14 cents.
But if the Guilford County property tax rate remains at 73.05 cents per $100 of estimated property value, someone who owns a $300,000 home will have a tax bill (county portion only) of $2,191.
The new revenue-neutral rate is 59.64 cents per $100. Again, this is the tax rate that would allow the county to have the same amount of property tax revenue this year as if the reassessment had not occurred. At this rate, the owner of a $300,000 home would pay $1,789 in county property taxes, a difference of $402.
The additional $92 million is much more than the commissioners anticipated. At the start of the process, they estimated that the revaluation would mean an additional $55 million and later revised that figure closer to $65 million.
The figure of $92 million in incremental revenue was presented to the board during a business session on Thursday, May 4. The commissioners have plenty of plans for how to use this extra revenue, but currently none of those plans include giving citizens a 14-cent tax. decrease.
With the new numbers, every extra penny on the tax rate adds $6.8 million to county coffers. A decade ago, the general rule was that a one-cent increase in the tax rate added about $5 million in new revenue.