The Henry County Board of Supervisors proposes lowering the real estate tax rate for fiscal 2026-27, but property owners’ tax bills will still go up.
The county board will hold a public hearing on new tax rates when it meets on Tuesday.
A real estate reassessment raised the overall value of properties in the county by about 51%, with residential values increasing by about 66%, according to County Administrator Dale Wagoner. To keep tax bills roughly the same, supervisors would have to reduce the rate from the current 55 cents per $100 of assessed value to 37 cents.
Instead, supervisors propose dropping the tax rate to 50 cents. Each penny of the tax generates about $450,000 in net income, according to Wagoner.
The proposed fiscal 2026-27 county budget totals about $230.6 million, an increase of roughly 3.5%.
Wagoner had proposed dropping the real estate tax rate to 48 cents and using the money to help cover rising costs, including the following:
- The proposed sheriff’s office budget is nearly $25 million, up by about 2.17%. That includes $782,000 for 11 new vehicles and in-car cameras, along with other cost hikes.
- Other public safety spending is budgeted at about $5.7 million, a 3.36% increase. That includes funding toward a new ambulance and a new fire truck, money for fire and rescue equipment maintenance and training, medical supply cost increases, new radios and/or pagers.
- The school system budget is nearly $118 million, with the county proposing a $1.19 million funding increase to help offset state funding losses of about $1.97 million.
- Social services spending will increase by about 4.9%.
- County employees will get a 2% cost of living adjustment.
When supervisors reviewed the budget April 7, Vice Chair Travis Pruitt proposed setting the real estate tax rate at 50 cents, saying he wants more funding to add a cybersecurity specialist, four paramedic/firefighter positions and a sheriff’s office administrative assistant.
Supervisor Debra Buchanan proposed adding a financial accountant position. Wagoner had left those positions out of the initial budget plan.
The board voted 4-1 for the 50-cent rate. Buchanan voted no because she wanted to set the rate at 49.5 cents.
The real estate tax rate has not changed since 2018.
The county proposes eliminating the $20.75 motor vehicle license tax on cars and trucks. However, it would offset that change by raising the personal property and machinery and tools tax rates from the current $1.55 per $100 of assessed value to $1.64.
Also, the county proposes raising the income limit for senior citizen or disabled persons’ property tax relief from $24,000 to $40,000.
The board will meet at 3 p.m. in the Summerlin Boardroom at the county administration building, 3300 King’s Mountain Road, Collinsville.
You can find the agenda and other meeting documents here.
