Vance County residents and taxpayers have until Jan. 6, 2025 to pay their property tax bills before getting hit with a 2 percent interest penalty. That may add insult to injury this year, when many taxpayers are facing higher bills as a result of the recent revaluation.
Vance County is among a handful of counties across the state that waits eight years – the state’s mandatory maximum interval to conduct revaluation – and some county leaders have said it needs to be done more often to reduce the sting and surprise of pricey tax bills.
Neither Vance County nor Henderson stayed with a revenue neutral rate, meaning an increase in value and an increase in the rate charged by each entity went up, combining in a way that nearly all parcel owners have had to pay more.
One issue that county officials said they will explore is splitting the tax bill to show the breakdown between city tax and county tax for those city residents who must pay both. This hasn’t been done in more than a decade, and a change could come as soon as the 2025 tax bill.
County commissioners adopted the 2024-25 budget on June 24, which included a 10-cent tax increase per $100 valuation. The basic breakdown of that 10-cent increase is $.01 for salary increases to help attract and retain county employees and $.09 for future capital projects.
As the county faces more opportunities for growth, be they commercial, industrial or residential, there also is a demand for adequate infrastructure to support that growth.
The question that municipalities and counties face is how to balance that growth – providing more services for residents, creating a better and bigger tax base that ultimately may reduce an undue burden on homeowners.
The Vance County budget was approved 4-2, with then-Board Chair Dan Brummitt and Tommy Hester casting votes of no. Commissioner Yolanda Feimster was not present. The motion was made by Commissioner Sean Alston and seconded by Commissioner Leo Kelly and rounding out the affirmative votes were Commissioner Carolyn Faines and then-Commissioner Archie Taylor.
It was not a unanimous decision, but the Henderson City Council voted to increase the property tax rate per $100 valuation to 65 cents, just before adopting the FY 2024-25 budget totaling more than $47 million.
In the budget recommended by City Manager Terrell Blackmon, the tax rate was 55 cents per $100 valuation, which was 10 cents above the revenue-neutral rate. The new property tax rate adopted, though, is 20 cents above the revenue-neutral rate.
Council Member Tami Walker made the motion to increase the tax, which she said would bring in more than $2.5 million in additional tax revenue. Council Member Ola Thorpe-Cooper seconded the motion. Council members Sam Seifert and Garry Daeke cast votes of no, and Council members Lamont Noel, Michael Venable, Geraldine Champion, Sara Coffey voted yes with Walker and Thorpe-Cooper.
