07/18/2023
Mecklenburg tax rates โ what in the world is going on?
Are they up, are they going down, and everything in between?
So, I know in one of my last videos, I had shared with you guys that the new assessments were out.
That's right, Mecklenburg County, just to give you a background, every few years goes back out and reassesses property for their tax value.
Now, let me point this out: tax value is not the actual sales value or what we consider market value in the real estate world.
Meaning, if you want to go sell your house right this second, more than likely it's not going to be listed at the tax value.
In fact, the tax value is just what the county is going to tax you on.
It's going to tax you on that amount, now you just sold it for, just bought it for.
It's for the actual assessed value by the county assessor.
So, what does this mean for you?
Well, one, it could mean potentially that your tax value is higher than the market rate or market value.
If this is the case, you can have this potentially adjusted.
What do you need to do?
Call a real estate agent like me, and I can go ahead and run a comparable analysis, give you the evidence you need to say, 'Hey, this is overvalued.'
Now, for a lot of you, and this is the case with many of my clients, when being reassessed, the tax value actually came in less than fair marketable value.
Meaning, what we could put our properties on the market for today and sell it for, the tax value is under that. In that case, that's awesome and do not go fight that.
Trust me, you do not want to pay more than you have to.
So, why am I getting back to you today?
Well, as I said, by the end of June, we should have an answer as to whether or not the tax rate would also increase.
See, with the tax value increasing, most people got an increase, not a decrease because values have gone up.
That is a fact since the last time that it was evaluated.
In fact, in Mecklenburg County, the average was a 20% increase year over year for both 2020 and 2021.
Now, with all of that information, I want to focus with you on what's going on with the rate.
The rate did also go up, and I'm going to reference my numbers here to make sure I get them right.
In fact, the rate went up to 47.31 cents per $100 value. Meaning, a $400,000 home, you're going to be taxed at 47.31 cents per hundred dollars towards that value.
Now, this is an increase of 1.6 cents.
That's right, an increase of 1.6 cents higher than the revenue neutral rate.
So, what does all that mean?
Well, it means they raise taxes.
And how does this affect you?
Well, for most people, it's going to vary.
It's going to be a very minor tax change.
The biggest change you're going to see is the fact that your tax value went up, not so much that the rate went up.
So, you're not going to feel the rate as much as you're going to feel your value, But what I can recommend, and what will be helpful for you, is to make sure that you're not focusing on what your tax value is.
In fact, most people who own homes in the Mecklenburg County area and the surrounding areas, by the way, your actual equity in the home has grown drastically.
If you have some concerns, if you want to get your equity out, there are a few ways to do that.
One, sell your house!
Two, do a cash-out refinance, or three, a lot of people do choose to do a home equity line of credit, known as a HELOC, where you can pull your money out as a separate mortgage, basically off of your original, and you have cash to use for what you need.
So, is it good news?
Is it bad news?
I'm never a fan of taxes, so in my mind, I'm bringing you bad news, But it's news you need to know.
For more real estate information, tips, tricks, and everything in between about Charlotte and the surrounding areas, reach out, let me know, and I'll be back to you with some more videos in the future.
Kaila Lindsey
704-559-9169
The Trulane Group, EXP Realty
Top 1% Realtors
NC/SC Licensed Realtor