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<br /> Budget Message
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<br /> Assessed Property Valuation and Property Revenue Neutral Tax Rate
<br /> North Carolina law requires counties revalue real property at least every eight years. In
<br /> 1993, the orange County Board of County Commissioners adopted a policy to revalue
<br /> property every four years. The goal of revaluation is to align appraised property values with
<br /> market values.
<br /> Orange County's most recent revaluation was effective January 1 , 2009. The County's post-
<br /> revaluation total assessed valuation, including real, personal, and public utility property and
<br /> motor vehicles, equals $15,369,119,202. The tax levy for the current year is $128,249,749,
<br /> and the growth factor since the ,last reappraisal is 2.8%. Using the formula mandated by
<br /> state law, the revenue neutral tax rate for orange County is 85.5 cents. In accordance with
<br /> State law, revenue neutral rate is defined as a rate that produces the same amount of
<br /> property tax levy as budgeted in the pre-revaluation year. The current year tax rate is 99.8
<br /> cents. The chart below outlines how this rate was calculated.
<br /> Calculating 2009 Ad Valorem Revenue Neutral Tax Rate
<br /> Personal Tax Rate
<br /> Property and Public Service Less Assessed Value fall Annual (per$,�00 property Tax
<br /> FY Real Property Homestead property tax Growth
<br /> Registered Companies Exemption components)' Rate assessed Levy
<br /> Motor Vehicles value)
<br /> 2005-06(actual
<br /> per audit) $10,321,040,868 $1,322,278,025 $211,531,245 (40,113,991.00) $11,814,736,147 0.843 $99,598,226
<br /> 2006-07(actual $10,936,261,416 $1,214,957,577 $218,479,438 (39,393,242.00) $12,330,315,189 4.4% 0.903 $111,342,746
<br /> per audit)
<br /> 2006-07 factual
<br /> per audit) $10,936,261,416 $1,214,967,577 $218,479,438 (39,393,242.00) $12,330,315,189 `;`:'`' '`;:= 0.903 $111,342,746
<br /> 2007-08(actual $11,183,241,007 $1,219,216,812 $218,549,070 (39,786,610.00) $12,581,220,279 2.0% 0.950 $119,521,593
<br /> per audit)
<br /> 2007-08(actual ' -=
<br /> per audit) $11,183,241,007 $1,219,215,812 $218,549,070 (39,786,610.00) $12,581,220,279 =,` °:;; ;; 0.950 $119,521,593
<br /> 2008-09(per
<br /> approved $11,407,167,466 $1,264,158,027 $225,105,542 (45,754,802.00) $12,850,676,233 2.1% 0.998 $128,249,749
<br /> budget)
<br /> 2009-10 $14,078,862,266 $1,144,855,451 $202,594,988 (57,193,502.50) $15,369,119,202 19.6% 0.834 $128,249,749
<br /> Growth Factor Adjustment
<br /> {average annual growth since 2.8%
<br /> last reval}
<br /> Revenue Neutral Tax Rate 0.858 per$100 assessed valuation
<br /> Real property values increase from $11 .4 billion budgeted in FY 2008-09 to $'14.'1 billion in
<br /> FY 2009-10, an increase of 23.4%. As projected in earlier revenue estimates, valuations for
<br /> personal property and motor vehicles, decrease significantly next year. These decreases
<br /> offset increases in real property resulting in an overall increase in total property valuation of
<br /> 19.6%.
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