Both Chapel Hill and Carrboro are considering proposals to lower the city tax rate that property owners are paying. Both towns are hoping to reduce the tax burden on the residents by approximately 14%. When the economy began to show signs of distress, the city managers of Chapel Hill reacted with budget cutting measures and halted some projects, resulting in a significant savings. Now, the towns are trying to reduce the burden on property owners, at least for the short term.
Orange County has adopted a tax neutral rate which will offset the increase in tax valuations that were sent out earlier this year. Tax valuations adjust the tax value of homes to reflect current prices. Because home values have increased in recent years, most homeowners saw a significant increase in the tax value of their home. The county is reducing the tax rate to offset the increase in value with the goal of a neutral tax adjustment for this year.
