Wake County considers 2‑cent tax hike amid revenue gap
RALEIGH, N.C. (WTVD) -- Wake County homeowners could see a higher property tax bill as the county manager proposes a 2-cent increase to help close a significant revenue shortfall. The proposal comes as the county expects to generate only $8 million in new revenue for the upcoming fiscal year - far below the typical $40 million to $50 million.
County Manager David Ellis has attributed the gap to what he described as a lack of state funding, property tax loopholes, and the war with Iran.
For homeowners like Albert Megl, who moved to Raleigh from California 14 years ago, the possibility of another increase is frustrating.
"It just seems like everything is going up, especially property taxes," he said.
A 2-cent increase would mean the owner of a $450,000 home could see their tax bill rise by $90. Megl said that the added cost would come on top of rising expenses elsewhere.
"Add that to all the, you know, the gas prices, food prices going up. It would hurt, you know, not drastically, but we'd definitely feel it," he said.
The county estimates the proposed rate hike would generate $62 million. But real estate professionals warn the effect could extend beyond current homeowners.
Shanta Jackson, owner and managing broker of Jackson Realty Group, said buyers are still adjusting to the county's last tax increase between 2020 and 2024.
"We're still adjusting to that. Everyone's kind of getting settled in, especially with this economy slowing," she said.
Jackson said another increase could push more buyers to look outside Wake County. When asked whether it could price people out, she responded, "It could. It already is. Let me tell you this. With taxes going up and now gas going up, I am now showing housing affordability for people within an hour radius of Wake in Durham County."
One of her clients works in Raleigh but is searching for homes in Rocky Mount to save money. Jackson said that trend could have broader consequences.
"What I don't want for Wake County is that our professionals, our teachers, our police officers. I want them to be able to live and work in the county that they serve," she said.
For now, the tax increase remains only a proposal. Megl hopes county leaders reconsider.
"It's hard for the people, hard for the people's pocketbooks," he said.
Ellis said that if the state had provided more funding, the county could have lowered the property tax rate by 19 cents, a change that would have saved the owner of a $450,000 home nearly $900.
