County Manager Keith Stiffel recommended raising Durham County's property tax rate by 3.25 cents per $100 of valuation to close a budget shortfall driven by collapsed sales tax revenue and reduced Medicaid reimbursements.
County Manager Keith Stiffel recommended raising the property tax rate by 3.25 cents per $100 of valuation, costing homeowners about $98 annually on a $300,000 home, to close a budget shortfall driven by collapsed sales tax revenue and reduced Medicaid reimbursements.
Sales tax revenue growth plummeted from $21.8 million to $3.3 million this year as post-pandemic spending normalized, while Medicaid hold harmless funding dropped $6 million below budget expectations.
Commissioners approved directing occupancy tax revenue to Durham Next economic development organization, a decision that will cost the capital financing fund $5 million over three years and likely require additional property tax increases.