Cabarrus County puts $400M in bonds on November ballots. How it could raise taxes
Cabarrus County’s proposed education bonds come with a $400 million price tag. But figuring out what they’ll take from taxpayers’ wallets is not as simple.
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Cabarrus County commissioners voted last month to put two referendums on the ballot this November. If voters approve both measures, Cabarrus County could borrow $340 million for Cabarrus County Schools and Kannapolis City Schools and another $60 million for Rowan-Cabarrus Community College. The county estimates the tax to be phased in as projects move ahead and the money is borrowed.
The two questions will appear separately on the Nov. 3 ballot. Voters could approve both, reject both or support one and not the other.
The change would add to tax bills on property including houses, as well as cars, boats, land and business property.
If borrowed, the money could only be used for major capital projects. It could not pay for teacher salaries, classroom supplies, utilities or other routine school expenses.
Cabarrus County Schools says the bond could help pay for new construction as well as renovations and replacements involving roofs, heating and cooling systems, plumbing, electrical infrastructure, windows, parking lots and school security.
Although enrollment is growing more slowly than it did in previous decades, the district says it still faces significant costs as older buildings and major systems reach the end of their useful lives.
The need extends well beyond the proposed bond package.
The county estimates Cabarrus County Schools, Kannapolis City Schools and Rowan-Cabarrus Community College together face more than $1 billion in capital needs over the next decade. County estimates put the cost of a new high school at about $135 million and a new elementary school at between $60 million and $65 million.
So, what could that mean for your wallet?
It depends on your property’s assessed value, which may be different from its market value.
For a home assessed at $250,000, the county’s online bond calculator estimates both proposals would eventually add about $125 a year to the tax bill. That works out to $10.42 a month, or about 34 cents a day.
The estimated cost rises to $200 a year for a home assessed at $400,000 and $300 a year for one assessed at $600,000. Those amounts are equal to about $16.67 and $25 a month, respectively.
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Most of that cost would come from the larger public school bond. The $340 million proposal for Cabarrus County Schools and Kannapolis City Schools would add an estimated 4.25 cents per $100 of assessed value. The $60 million Rowan-Cabarrus Community College bond would account for the remaining 0.75 cents.
If both measures pass, the estimated annual cost would break down like this:
North Carolina property taxes also apply to registered vehicles and certain other taxable property, including business equipment and boats. Cabarrus County’s calculator focuses on homes, but the same additional county tax rate would apply to those assessed values as well.
The extra amount on most vehicles would be relatively small. At the full 5-cent increase, a vehicle assessed at $10,000 would add $5 a year, while one valued at $20,000 would add $10 and one valued at $40,000 would add $20. Vehicle property taxes are collected with annual registration fees.
But homeowners should not expect the full amount to appear on their first tax bill after the election. Estimates show what taxpayers could pay each year after the county has borrowed the full amount authorized by voters and implemented accompanying tax increases. The county plans to issue debt as projects advance instead of borrowing the entire $400 million at once.
That means the tax increase could build over time.
The earliest any added tax hike could take effect is during the fiscal year that begins July 1, 2027, according to the county.
The county has offered a four-year project schedule as an example of how the tax impact could be phased in, but it has not identified a year-by-year tax schedule.
Under approval from the state’s Local Government Commission, Cabarrus County would have up to seven years to complete the projects.
Residents can find the assessed value of their home by entering their address into the county’s bond calculator, which draws from Cabarrus County property records. A home’s assessed value is the figure the county uses to calculate property taxes, not necessarily the price an owner recently paid or what the home might sell for today.
A home’s assessed value is the figure the county uses to calculate property taxes, not necessarily the price an owner recently paid or what the home might sell for today.
The calculator allows users to compare three scenarios: both measures passing, only the public school bond passing or only the community college bond passing.
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