A Responsible Path to Tax Relief for Waxhaw: My Data-Driven Proposal
On March 5, 2025, Union County began mailing property reappraisal notices to homeowners, reflecting an average 60% increase in property values. As a homeowner myself, I understand the immediate concern this raises:
Will my property taxes increase by 60%?
The short answer is no, but only if the Town of Waxhaw takes responsible action in setting the 2025 tax rate.
A Decision from 2021 That Prepared Us for Today
In 2021, the Town of Waxhaw had the opportunity to lower the tax rate following a reappraisal. Instead, the board made a difficult, but strategic decision to keep the tax rate at 0.385 rather than reducing it.
At the time, this decision was not popular, but it was made with the long-term financial stability of our town in mind. The reasoning was simple: by maintaining the tax rate, we would create a safety net to protect against future economic uncertainties and inevitable reappraisals, like the one we are facing now.
Because of that approach, I am now able to propose a position that will responsibly adjust the tax rate downward without jeopardizing the town’s financial health.
A Revenue-Neutral Approach for Fairness & Stability
As a Commissioner, my priority is ensuring that we do not over-tax residents simply because of rising property values. That is why I am proposing an adjustment to a Revenue-Neutral Tax Rate of 0.241.
A Revenue-Neutral Tax Rate means that even though property values have increased, the town collects roughly the same total tax revenue as last year.
It ensures that the town is not collecting additional money beyond what is necessary to operate, and
It provides a fair and balanced approach for all taxpayers.
In this statement, I have detailed my calculations for the Revenue-Neutral Tax Rate and outlined a plan to responsibly manage town spending while keeping Waxhaw financially stable.
When we make thoughtful adjustments and prioritize fiscal responsibility, we can achieve a balanced approach that protects both residents and the town’s long-term financial well-being.
SPECIAL NOTATIONS
It is important to note that these are estimates since the final Ad Valorem revenue will need slight adjustments once all reassessed values are finalized. However, this projection should be very close to where I believe we will ultimately land for revenue neutrality.
I want to be clear: I am only one of five voting members on the Board of Commissioners, and my views do not necessarily represent the full board. This is my analysis, based on the best available data, to advocate for a tax rate that I believe is both fiscally responsible and fair to residents.
What Does Revenue-Neutral Mean?
Property taxes are determined by two key factors:
The assessed value of your property
The tax rate set by Union County and the Town of Waxhaw
When property values rise, the town has two choices:
Keep the same tax rate (0.385 per $100 valuation), which would generate significantly more revenue than last year.
Adjust the tax rate downward to be revenue-neutral, meaning the town collects roughly the same total tax revenue as last year despite higher property values.
The Revenue-Neutral Tax Rate I have calculated is 0.241, which means that even though property values have increased by an average of 60%, the town is not collecting more money than necessary to operate.
How Did I Calculate the Revenue-Neutral Tax Rate?
With the Union County Tax Assessor’s Office projecting an average 60% increase in property values, I wanted to ensure that my proposed Revenue-Neutral Tax Rate accurately reflects a neutral tax revenue for the Town of Waxhaw. Below is the step-by-step breakdown of how I arrived at a Revenue-Neutral Tax Rate of 0.241 per $100 of assessed value.
The Revenue-Neutral Tax Rate is calculated using a simple formula:
\( \text{Revenue-Neutral Rate} = \left(\frac{\text{Previous Year’s Tax Revenue}}{\text{New Assessed Property Value}}\right) \times 100 \)
Step 1: Confirm the Current Total Assessed Property Value
The total assessed property tax base for FY24-25 (before reassessment) is:
Total Value of Real Property Tax Base (FY24 - 25) = $2,976,915,083.00
This figure represents the taxable property value in Waxhaw before the reassessment takes effect in FY25-26.
Step 2: Calculate Current Tax Revenue at the Existing Rate
The current Waxhaw property tax rate is 0.385 per $100 of assessed value. To determine how much revenue this tax rate generates, we use:
Total tax revenue collected:
\( \text{Total tax revenue} = \left(\frac{\text{Total Property Value x Current Tax Rate}}{\text{100}}\right) \)
\( = \left(\frac{\text{2,976,915,083 x 0.385}}{\text{100}}\right) = 11,460,123 \)
So, Waxhaw is currently generating approximately $11,460,123 in property tax revenue.
Step 3: Project the New Property Valuation After Reassessment
Union County expects an average 60% increase in assessed values. Therefore, we calculate the new total assessed property value for FY25-26:
Expected Property Valuation (FY25-26) = Total Property Value (FY24-25)} x 1.60
= 2,976,915,083 x 1.60
= 4,762,664,133
After reassessment, Waxhaw’s total taxable property value is projected to be $4.76 billion.
Step 4: Calculate the Revenue-Neutral Tax Rate
To ensure the Town collects the same revenue as last year, we adjust the tax rate downward. The revenue-neutral tax rate is calculated as:
\( \text{Revenue - Neutral Tax Rate} = \left(\frac{\text{Previous Year's Tax Revenue}}{\text{New Assessed Property Value}}\right) x 100 \)
\( = \left(\frac{\text{11,460,123}}{\text{4,762,664,133}}\right) x 100 \)
=0.241
From this, the Revenue-Neutral Tax Rate is 0.241, ensuring that the town collects the same amount of tax revenue as last year.
Key Reasons for Staying Revenue-Neutral (0.241):
Fairness Across All Neighborhoods – If the tax rate is lowered below neutral, different areas in Waxhaw could receive unequal tax reductions, creating unnecessary contention among residents. Revenue-neutral ensures everyone is treated fairly.
Stable Town Operations – The town budget was built on revenue expectations aligned with neutral tax levels. Going below neutral would require more extensive cutting services or delaying major projects beyond what is necessary.
Long-Term Fiscal Responsibility – A neutral rate maintains financial stability, ensuring that Waxhaw can continue to invest in infrastructure, safety, and quality-of-life improvements without overburdening taxpayers.
Key Concerns About Capital Improvements 5 Year Plan 2025 - 2029
From the CIP Budget Book, the total [estimated] capital spending projections are as follows:
As Waxhaw continues to grow, investing in critical infrastructure is necessary to support our expanding community. However, responsible governance requires that we ensure these investments are both financially sustainable and aligned with our long-term priorities.
In Fiscal Years 2026 and 2027, the town has planned significant capital improvement expenditures, largely driven by major infrastructure projects. Through proactive financial planning, town staff has successfully secured alternative funding sources (such as grants and fees in lieu) to offset a portion of these costs. As a result, the adjusted capital spending figures are estimated to be:
FY26: $7.86 million
FY27: $7.33 million
While this reduces the financial burden on the town, these spending levels still represent a considerable increase compared to prior years. Even with secured funding, Waxhaw must take a measured approach to ensure we are making wise financial decisions and prioritizing essential projects.
The Need for Responsible Planning
As we adjust the tax rate to revenue-neutral, it is critical to evaluate whether our Capital Improvement investments are appropriately timed and financially sustainable. Without careful planning, large-scale capital expenditures could place a strain on future budgets, potentially requiring additional revenue increases or service reductions to compensate.
Are All These Projects Essential Right Now?
Which projects must be completed immediately?
Are there lower-priority projects that could be deferred without negatively impacting residents or businesses?
Could some investments be phased in over multiple years to ease the financial impact?
A project that is important does not necessarily mean it must be fully funded all at once. Some initiatives may benefit from a phased approach to better balance spending across multiple fiscal years.
Are There Additional Alternative Funding Sources?
The town has already secured grants and fees in lieu to reduce the financial burden, but we must continue to seek additional funding opportunities. Possible options include:
Public-private partnerships that leverage developer contributions for infrastructure improvements.
State and federal infrastructure grants to further offset costs.
If outside funding is available, we should aggressively pursue these opportunities before relying solely on town resources.
A Responsible Approach to Our Budget: Navigating the Path Forward
As Waxhaw moves forward, we are faced with important financial decisions that will shape our town for years to come. With the recent countywide property reappraisal, it is essential that we set a responsible and sustainable tax rate that provides for essential services without overburdening taxpayers.
At the same time, we must take a hard look at our future budget projections (especially capital improvement spending) to ensure that our investments are financially sound and align with actual needs.
Through careful planning, the town has secured alternative funding sources, including grants and fees in lieu, to help offset some of our projected capital expenses in Fiscal Years 2026 and 2027. While this is an improvement over earlier projections, Waxhaw is still entering a period of Capital Improvement spending that must be thoughtfully managed.
The question is not just how much we spend, but how we prioritize investments to keep our town financially stable while meeting the needs of our growing community.
The Reality of Our Budget Gaps
Even with secured external funding, Waxhaw is still facing significant increases in capital expenditures over the next few years.
Here’s the reality:
At a revenue-neutral tax rate (0.241), we will still have a budget shortfall of approximately $3.1M in FY26.
Even at a midpoint tax rate (0.313), we would still need to account for a $1.2M gap.
Keeping the current rate (0.385) would generate a surplus of $2.5M, but at the cost of increased taxpayer burden.
This means that simply maintaining our current tax rate is not the only path forward. Instead, we must make smart financial decisions to align spending with realistic revenue expectations while ensuring that the town remains on solid financial ground.
What This Means for Capital Improvements
Our Capital Improvement Plan (CIP) includes key infrastructure projects aimed at improving roads, public facilities, and other essential services. Thanks to alternative funding efforts, the projected capital expenditures have been reduced from earlier estimates, bringing them to:
FY26: $7.86M
FY27: $7.33M
While this reduction is significant, these figures still represent a major increase compared to previous years. Moving forward, Waxhaw must:
Prioritize essential infrastructure projects: ensuring that necessary improvements are completed while delaying non-urgent projects.
Continue pursuing alternative funding sources: to further reduce the financial burden on local taxpayers.
Phase in projects over multiple years: instead of funding everything at once, allowing for better financial flexibility.
When we apply this measured approach, we can ensure that critical infrastructure projects move forward responsibly without creating financial instability.
Final Thoughts & Call to Action
I believe in responsible governance and transparency. The Revenue-Neutral Tax Rate (0.241) is the best way to ensure fairness across Waxhaw while maintaining financial stability.
At the same time, we must carefully evaluate spending priorities to ensure that we are being responsible stewards of taxpayer dollars.
It will be interesting to see how other municipalities handle this reappraisal — especially those that chose to cut their tax rates last time. Will they be in a position to lower taxes again, or will they be forced to raise rates to compensate for past decisions?
I encourage residents to attend upcoming meetings, ask questions, and share your thoughts. Your voice matters in shaping the future of our town.