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12 <br /> was given much respect. He said the taxes are already some of the highest in the state and he <br /> has heard the term revenue neutral and asked the Board to meet that and to also be spending <br /> neutral. He said they need to be spending on what is needed and not what is wanted. He said <br /> there are people going hungry. He said that his money has been spent to buy ink pens with Orange <br /> County information and that he does not think taxpayers will be upset if they do not get a pen. He <br /> said he lives in the rural buffer, and he feels like they have his property and the sign welcoming <br /> people into the area is not needed. <br /> Chair Bedford said April 30' is the deadline for informal appeals. <br /> In order to allow all those present an opportunity to hear the Revenue Neutral Tax Rate <br /> presentation, Vice-Chair Hamilton made a motion to move item 7-a next on the agenda. The <br /> motion was seconded by Commissioner Fowler. <br /> VOTE: UNANIMOUS <br /> 7. Reports <br /> a. Revenue Neutral Tax Rate for FY 2025-26 <br /> The Board reviewed the revenue neutral tax rate calculation for FY 2025-26. <br /> BACKGROUND: The Tax Administration Department has completed the 2025 revaluation of real <br /> property. The revaluation is intended to adjust property values to reflect market value as of the <br /> appraisal date of January 1, 2025. <br /> The 2025 revaluation was mandated in 2022 when the County's sales ratio or the comparison <br /> between assessed value and market value dropped below 85%. NCGS 105-286(a)(2) states: <br /> A county whose population is 75,000 or greater according to the most recent annual <br /> population estimates certified to the Secretary by the State Budget Officer must conduct a <br /> reappraisal of real property when the county's sales assessment ratio determined under G.S. <br /> 105-289(h) is less than .85 or greater than 1.15, as indicated on the notice the county <br /> receives under G.S. 105-284. A reappraisal required under this subdivision must become <br /> effective no later than January 1 of the earlier of the following years: <br /> a. The third year following the year the county received the notice. <br /> b. The eighth year following the year of the county's last reappraisal. <br /> The sales ratio for 2022 was 0.8197 which was below the standard of 0.85 and triggered a <br /> mandatory revaluation within three years. By 2024, the sales ratio had dropped to 0.6445. <br /> The 2025 revaluation resulted in a 38.6% increase in the total tax base compared to FY 2024-25, <br /> increasing the total tax base by $9 billion to $32.6 billion. <br /> Property tax revenues are calculated by applying a property tax rate to the property tax base. If <br /> the tax rate were left unchanged following a revaluation, property tax revenues would <br /> automatically increase as a result of the increased property tax base. However, the State of North <br /> Carolina requires counties to publish a revenue neutral tax rate following a revaluation. The <br /> revenue neutral tax rate is the tax rate that would produce the same amount of revenue that was <br /> generated in the prior year given the new tax base. The revenue neutral tax rate is then adjusted <br /> for the average annual natural growth that occurred since the last revaluation. <br />