Eggs and taxes: Wake County town pushes back against property-tax hike
Few residents are going to read a 98-page document outlining the town’s proposed budget and property-tax increase.
But Judy Springer did.
At 74, the former teacher has lived in Morrisville for over 24 years and now has to think about what might happen to her if the town votes to increase property taxes, pricing out many of its longest-standing residents, she said.
Homeowners could see a 20% or more increase in their property tax bills if the town budget is approved.
“This is going to decide whether I can stay here or not,” she said. “Not only am I on a fixed-income and a senior but I’m also handicapped.
“I’m not as active as I used to be but I talk to my neighbors and other people, and nobody I know got a 20% increase in their salaries,” she said. “I certainly didn’t get it in my Social Security or my pension.”
Like Springer, many residents who have lived and raised families in Morrisville are used to taxes going up each year to cover costs and fund projects, but this year’s proposed increase came as a shock.
Wake County’s revaluation has raised property values in Morrisville and across the county. While not all residents will see higher property tax bills, many will and have expressed concern about what it means for their personal budgets. Property values have increased by up to 50 percent across Wake County with double-digit increases in proposed local tax bills.
‘Can I afford a dozen eggs?’
Morrisville’s proposed tax rate for next year is 35 cents per $100 of assessed property value. This is 5 cents lower than the current tax rate but 5 cents above the revenue-neutral rate, or the tax rate needed to generate the same income as before the revaluation.
Someone who owned a $400,000 house before the revaluation paid $1,560 in Morrisville property taxes. Now that home, on average, is valued at $580,000 with a town tax bill of $2,030. Property owners also pay a county property tax.
“In this economy, it’s going to come down to, can I afford a dozen eggs? Or do I go with or without medication? I think it’s an unfair burden they’re putting on homeowners,” Springer said. “I own my home, I don’t have a mortgage. But if I can’t afford to live here because I can’t afford the taxes, what am I going to do?”
Manager explains budget increase
Morrisville’s proposed budget for fiscal 2025 is $58.2 million, a nearly 19% increase from this current year’s budget of $47.9 million.
After the revaluation, Morrisville saw a 45% increase in value between commercial and residential properties combined. The proposed tax base of $9.4 billion is almost evenly split between residential and commercial property, meaning homeowners contribute a smaller share of total property tax to support government operations compared to many Triangle communities.
Town Manager Brandon Zuidema said the town has to go above the revenue-neutral tax rate because of “growth in our base budget and ongoing inflation.”
“(This has) contributed to the need for revenues beyond those resulting from natural growth to maintain existing service levels and funding of reserves at a higher level to support capital projects, land acquisition, parks, and transportation,” he explained in his budget message. “Additional revenues are required to maintain current assets and programming and to introduce new initiatives (and related staff) aligned with community interests.”
Staying or selling one’s home
Jackie Holcombe, an activist and more than 20-year Morrisville resident is one of the residents organizing to educate her fellow property owners. After the revaluation, her property value went up 35%.
“Morrisville had a significant jump in the evaluation of the residential properties, which is great if we were all selling our homes,” she said. “Lots of us would like to stay here and continue to enjoy the things Morrisville offers. But this cost is very, very, very high to do that.”
She is most concerned about the impact on seniors, small-business owners, and residents on limited or fixed incomes.
“Their property values don’t really equate to whether or not they have the resources to pay those taxes,” she said. “The town has given lots of opportunity to weigh in on the budget, but they’ve made no attempt to let property owners know what this means for their bottom line.”
Holcombe and others have organized a petition, knocked on neighbors’ doors, handed out yard signs, and set up a website to inform people about the tax increase proposal. As of Wednesday afternoon, over 70 people have signed the petition urging the mayor and town council to reconsider the budget proposal and find other solutions.
‘We are listening’
Holcombe believes the Town Council is open to hearing residents. Since the proposed budget was released, the town has opened a public comment period for residents to speak at meetings or email their opinions to the town manager’s office.
The final day to speak at a public hearing is June 11 at 6 p.m., and the Town Council could vote on the budget at that meeting. The council must approve the budget before July 1, when it takes effect.
“Our budget process is designed to maximize opportunities, both virtual and in-person, for our residents and stakeholders to share their thoughts about how their taxes will be invested in the upcoming year and beyond, and we are listening,” Mayor T.J. Cawley said in a statement.
This story was originally published June 6, 2024 at 5:45 AM.