Residents of Guilford County, North Carolina (Greensboro) will vote May 17, 2022, on raising the county’s sales and use tax rate by one-quarter cent. If approved, County Commissioners have promised to lower property tax rate an equivalent amount.
The proposed sales tax is expected to generate about $20 million in revenues annually, according to the County Resolution. Officials say this will allow taxpayers to chip in a little more in sales tax for savings on their property taxes.
“The one-quarter cent sales tax, which is paid by everyone regardless if they are renters or tourists, will help generate revenues to cover our $2 billion in school needs,” County Commission Chairman Melvin Alston said.
Currently, Guilford County property taxes make up roughly 60% of county revenues while sales taxes only account for approximately 15%.
Several other counties including Forsyth, Randolph, Orange, Wake and Mecklenburg Counites have successfully passed the Article 46 sales and use tax funding options.
Guilford County’s tax rate is going to drop for another big reason: the 2022 revaluation of all real estate. North Carolina General Statutes require each county to conduct a reappraisal at least once every eight years. Guilford County reappraises property every five years.
New notices of value were scheduled to be mailed in February but came out late this year, arriving in mid-April. Most property owners saw an increase in value from the last reappraisal in 2017.
Tax jurisdictions are not entitled to a revenue windfall when real estate values rise. The new tax rate will be adjusted by elected officials such as the County Commissioners and various City Councils.
The 2022 tax rates will not be set until early to mid-June of 2022. The 2022-2023 fiscal year runs from July 1, 2022, to June 20, 2023.