The City of Asheville outlined on Apr. 22 the relationship between the Buncombe County property revaluation and its own tax rate, as well as the effects on residents’ property tax bills and the upcoming city budget. The announcement comes as Buncombe County conducts its first property value reassessment in five years, requiring Asheville to calculate a “revenue neutral tax rate” under North Carolina law.
This process is important because it determines how much revenue the city collects from property taxes, which make up over half of Asheville’s General Fund that supports services like police, fire, garbage collection, street maintenance, and parks and recreation. The revenue neutral rate is designed to keep total tax collections stable despite changes in assessed values due to revaluation.
City officials said that while Council will set the final property tax rate in June with adoption of the fiscal year 2027 budget, they are not required to use the revenue neutral rate. “They are not required to set the tax rate at revenue neutral and the rate may ultimately have to be set above revenue neutral in order to balance the budget which could potentially raise City of Asheville property taxes.” The effect on individual residents will depend on how much their specific property’s value changed compared to others across Asheville.
The city addressed concerns about a projected $30 million deficit for next year by explaining that early estimates reflected slower-than-expected revenue growth due partly to statewide trends and lingering impacts from Helene. Rising expenses—especially health care costs for employees—and new debt from voter-approved bonds also contributed. “The City is not missing $30 million nor is the City running a $30 million deficit. The City has a balanced budget for the current fiscal year and expects to end the year in June with revenues and expenses very close to budget estimates,” officials said.
To close this gap—which has now been reduced from $30 million down to approximately $10.5 million—the city plans measures such as eliminating vacant positions, reducing non-critical services, and finding less expensive ways of operating before presenting a proposed FY27 budget May 12 for public comment May 26 ahead of an adoption vote June 9 at City Hall at 70 Court Plaza.according to the official website.
Asheville operates under a council-manager government structure with policy overseen by elected officials—including a mayor and six council members serving staggered four-year terms—and day-to-day operations managed by an appointed city manager according to its official website. Departments such as Public Works, Water Resources, Planning coordinate municipal services for residents within city limits according to information provided by Asheville. Long-term planning efforts are guided through initiatives like City Plans aimed at sustainable growth and equitable development as described by Asheville’s official website.
