The Henry County Board of Supervisors voted Tuesday, April 7, to advertise a higher real estate tax rate as it continues work on its fiscal year 2026-27 budget — a move that could mean larger tax bills for most property owners following last year’s reassessment.
The change came after a detailed, section-by-section review of the proposal, and an extended discussion by the board about its priorities and the level of funding necessary to maintain or enhance county services.
Afterwards, the board voted 5-1 to advertise a rate of 50 cents per $100 of assessed value. Supervisor Debra Buchanan, of the Horsepasture District, cast the lone dissenting vote, favoring a slightly lower rate of 49.5 cents per $100.
The new advertised rate is also higher than the 48-cent rate included in the county administrator’s proposed budget. Based on historical collection rates, each one-cent increase generates about $450,000 in revenue, meaning the additional two cents would bring in an estimated $900,000.
Even with a lower rate than the current 55.5 cents, most property owners are still expected to pay more in taxes because of the county’s recent reassessment, which increased property values by about 51 percent overall and 66 percent for residential properties. Under the originally proposed 48-cent rate, the average tax bill was expected to rise about 31 percent. That increase would be slightly higher under the advertised rate.
County officials said the additional revenue would help cover key priorities identified during the budget process, including new positions in public safety, finance, information technology and the sheriff’s office. The positions are intended to maintain service levels and address growing demands across departments.
The added funding would also provide flexibility as the county awaits final action on the state budget, which could affect local funding obligations.
Several major elements of the proposed budget remain unchanged, including continued funding for public education and public safety, along with a proposed 2 percent cost-of-living adjustment for county employees. The plan also maintains a conservative approach to capital spending, focusing on maintenance and equipment replacement while delaying major new projects.
The proposal includes expanded real estate tax relief for seniors and residents with disabilities by raising the income eligibility threshold to $40,000.
It also keeps a plan to eliminate the $20.75 motor vehicle license fee and replace that revenue through adjustments to personal property and machinery and tools tax rates. For many residents, particularly those with lower-value vehicles, that change is expected to reduce overall vehicle-related taxes.
The advertised tax rate is the highest the board can adopt without holding another public hearing. Supervisors may lower the rate later but cannot raise it beyond the advertised amount without additional notice.
The budget remains under review. No final decisions have been made. The board will continue to evaluate the proposal, including potential adjustments to expenses and revenues, in the coming weeks.
Public hearings on the proposed county and school budgets are scheduled for April 20 at 7 p.m. in the Summerlin Boardroom of the Henry County Administration Building. A separate public hearing on the real estate tax rate will be held April 28 at 6 p.m. during the board’s regular meeting.
