Chapel Hill raised tax rate 10% last year. Mayor warns another increase is pending.
Chapel Hill property owners could pay higher taxes this coming year to cover big-ticket purchases and delayed maintenance work, Mayor Jess Anderson said Tuesday.
The Town Council could also ask voters to approve a $50 million bond to pay for affordable housing and public works projects, including sidewalks, roads and public safety facilities, Anderson said in an email message.
The council has not yet decided when to put the bond referendum on the ballot or how to spend the money, she said.
Isn’t the county also considering a bond?
Yes. The Orange County Board of Commissioners already plan to vote April 2 on a possible $300 million bond referendum for schools maintenance and repairs.
That bond, set for the Nov. 5 ballot, could add another 8.42 cents per $100 in assessed property value to local tax bills.
The owner of a house valued at $400,000 would pay another $336.80 in county property taxes if the county implements the full tax-rate increase in 2025.
When are property taxes due?
Any increase in the town’s property tax rate would come in bills that get sent out this summer, are due Sept. 1 and are payable by Jan. 5, 2025, without interest. An increase in the county’s tax rate to pay for the bond could be levied in the summer of 2025.
Did Chapel Hill raise taxes last year?
Yes. The Chapel Hill council approved its biggest tax rate hike in years last spring when it added 5 cents to the town’s property tax rate in 2023.
The extra money is helping to replace police, fire and public works vehicles and complete deferred maintenance and parks projects.
The town’s property tax rate is now 57.2 cents per $100 in assessed property value.
How much could town taxes go up this time?
Another 1.5- to 2-cent increase could add up to $80 to the annual tax bill for the owner of a $400,000 home. Chapel Hill property owners also pay county taxes and a special Chapel Hill-Carrboro Schools district tax.
Increased tax revenues could “ensure long-term financial stability” for the town, Anderson said.
“We know that these decisions will impact individuals, families and businesses across our community and do not take these decisions lightly,” she said. “At this point, we are midway through the budgeting process and council has asked for more information prior to making these decisions.”
What happens next?
The council’s next budget discussion will be April 15 at the Chapel Hill Public Library.
This story was originally published March 27, 2024 at 5:45 AM.
