Raleigh needs an Internal Audit

To: Raleigh City Council

Re: Property tax inequities and the need for an internal audit

I read recently in the News & Observer that you are thinking of raising the property tax rate. I strongly urge you not to do that, and here is why I think that.

I suspect a lot of taxpayers are struggling to pay their taxes. Some will have to consider moving, being forced out of a home they have owned for many years. Some folks may have to put off retirement, and some retirees may have to go back to work (if they can find a job) to help pay even more property taxes.

I am also concerned for many of these same homeowners that have had their property taxes skyrocket simply because affordable homes in their neighborhoods are being torn down and replaced by multi-million-dollar properties.

Now, some folks might respond and say that this is a plus for the homeowner. These “lucky” property owners can sell and make a killing. I have spoken to many homeowners who realize that they have a lot of equity, but they also know that even with that increased equity they could not afford to buy another home in their neighborhood.

I have suggested this in an earlier communication to you, but I will do so again. Before any attempt is made to raise taxes you need to have an independent arm’s length audit/efficiency study of all city departments to make sure taxpayer money is being properly spent. Given the financial headwinds the city is facing, not doing an audit would be the height of financial irresponsibility. Reaching into the taxpayers’ wallets every time there is a financial shortfall is not the answer.

In the last couple of weeks or so the News & Observer had an insert that showed all the liens that Wake County had filed against properties that were delinquent on property taxes. As far as I could tell from a search on the County website, there were 1,909 property owners with a Raleigh address that are delinquent. I wonder how many are in that position due to an inability to pay their property taxes.

I would also suggest that the city lobby the legislature to close that affordable housing tax loophole that allows individuals to escape the property taxes if a property has 0.1% ownership by a non-profit. This sets the bar much too low and shoves a greater tax burden on the average property taxpayer.

Lastly, I have noticed that there is a gross inequity in how property taxes are assessed. I picked out at random, a property in Southeast Raleigh, and one from inside the beltline. Here are the results. You tell me, is this situation fair and equitable?

Homeowners in Southeast Raleigh are being hit hard by gentrification. This inequity needs to be addressed sooner rather than later. 

I would be happy to speak with you about any of the above if you would like to do so. I can meet you at the Council office, or at your favorite coffee place.

Sincerely,