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Large revaluation raises median home value; lower tax rate proposed still raises typical bill in dollars
Summary
City staff said citywide revaluation dramatically increased assessed values and showed how a lower proposed tax rate can still increase the dollar amount paid by a typical homeowner. Council asked for more homeowner impact detail.
Durham’s budget presentation emphasized a recent citywide revaluation that sharply increased assessed values and changed how a typical homeowner’s property tax bill is calculated. Budget staff said the revaluation produced a historic jump in assessed real property values and showed staff’s calculation of the effect on the median homeowner.
Why it matters: revaluation changes the assessed base used to set tax rates. Even if the cents‑per‑$100 rate drops, the higher assessed values can raise the actual dollars a homeowner pays — a point staff repeatedly emphasized while explaining the proposed FY26 rate package.
Key figures presented by budget staff: the median home value used in the FY25 calculation was reported as $239,000; after the revaluation the median home value shown for FY26 rose to $415,000, a 73% change from the earlier figure. Staff emphasized that assessed‑value growth and tax rates are distinct: the proposed FY26 tax rate in the manager’s budget (43.71 cents) is lower than the FY25 rate (59.62 cents), but because assessed values increased, the example median homeowner’s tax payment in FY26 under the proposed rate would rise from $1,423 (FY25 basis) to $1,814 — an increase of $386 in the staff illustration.
Budget staff also pointed out a change they called “the value of the penny” (the dollar yield to the city from a one‑cent change in the rate) increased in staff materials from 4.3 to 6.9 (presentation did not specify units) following revaluation; staff said they would supply source data and dates for peer comparisons on request. Council members asked staff to supply the underlying homeowner calculations and data dates in writing so they could check the arithmetic and ensure communication to the public is precise.
Staff cautioned that charts comparing Durham’s proposed rate to peer cities omit local fees (for example, solid‑waste charges) and may use different dates for peer values; council asked staff to correct any peer comparators that use inconsistent source dates.
Council follow‑up: staff will return with a clear, dated set of homeowner impact examples, and will correct peer comparison figures where needed.
