6 things to know about a possible new property tax coming to parts of west Raleigh
City leaders are considering a new property tax for parts of west Raleigh.
Here are six takeaways about the proposed tax district.
Where and what would make up this district?
The district includes property near PNC Arena, the N.C. State Fairgrounds and the N.C. Museum of Art. It is bordered by Interstate 40/Edwards Mill Road to the west, Interstate 440 to the east, Western Boulevard to the South and the intersection of Edwards Mill and Blue Ridge roads to the north.
About 63% of the acreage in the district is tax-exempt. Of the rest, nearly 39% is commercial property such as apartments, hotels, banks, offices and restaurants.
The tax would apply to land in the district that has been incorporated into the city. State property inside its boundaries would be excluded.
What would the tax help pay for?
If the Raleigh City Council approves the district, the city will hire a group to manage it. The Blue Ridge Corridor Alliance, which has asked for the district, would apply to provide that oversight.
That lead agency would provide greater beautification, cleaning and safety programming, economic development and planning, and communications, marketing and placemaking.
It would do this through landscaping in public areas, removal of graffiti, installation of welcome banners, support of small businesses, advocating for affordable housing and transit projects, creating promotional materials and soliciting public art.
Big changes are coming to the area
Carolina Hurricanes owner Tom Dundon got the rights to develop land around PNC Arena when the Canes extended their lease through 2044.
“What you hope is that we can build, that the way we build it, it’s a place where people want to be every day, right?” Dundon told The News & Observer in an interview. “Whether it’s because of the shops, the restaurants, the green space. It’s just a place where you want to live, you want to work, you want to come shop.”
That’s in addition to the new Bandwidth campus off of Edwards Mill, the future N.C. Health and Human Services headquarters across from the art museum on Blue Ridge Road and significant transit improvements in the works.
Raleigh has two other tax districts
The new property tax would be created using a municipal service district, a tool that lets cities levy an additional property tax on an area to provide enhanced services and projects there.
Raleigh has two such districts now, one covering the downtown area and the other along Hillsborough Street. Future districts could come to the North Hills area and around Dorothea Dix Park.
How much would the new tax cost?
The Blue Ridge Corridor Alliance is seeking a tax rate of 3 cents per $100 of assessed property value for the municipal service district. The tax would be paid on top of other city and county property taxes collected.
A property valued at $500,000 would see an additional tax of $150 per year. The alliance estimates renters in the district would see an increase of $5.35 per month in their rent.
“Tax-exempt partners” would be asked for voluntary contributions, which is how the alliance has been funded so far..
There’s still time to share your thoughts
The alliance has held several in-person and virtual meetings to gain feedback on the proposed district. People can also submit their feedback by visiting publicinput.com/w1523.
If city leaders move forward, a public hearing will be held at a Raleigh City Council meeting. And property owners within the district will be mailed a notice about the district.
