your impact
Posted by Jim Penrod at 2/6/2008 2:02 PM and is filed under uncategorized 
Attention Homeowner:
Do you know how
much your taxes will go up???
HOME
VAULE NEW
150,000 $1,200.00
210,000 $1,800.00
350,000 $2,600.00
Are you ready to pay that NEW bill when it comes due??
Yes,
that is every year!
It's not just that your taxes will go up every year. The first year after annexation the impact will be even greater. Many of us have mortgages that accrue each month for taxes. In other words, the mortgage company pays your taxes from escrow, and if you're expecting to pay $1200 a year, you're putting $100 each month into escrow for that bill. Every year, the company does an analysis to be sure you're putting enough in. The first bill after annexation will suddenly find you with a deficit that you have to cover.
Suppose your bill goes from $1200 a year to $2400. If annexation occurs, your company will pay a $2400 bill in August 2008 instead of the expected $1200. You now have a $1200 deficit in your account. At that point you have two choices: 1) Pay the difference immediately, or 2) Spread out the difference over the NEXT 12 months (into 2009). But remember, the next year your mortgage payment will already be recalculated for the new $2400 tax amount! So, if you can't immediately pay the $1200 difference for 2008 taxes, in 2009 your mortgage payment will increase by $200 a month ($100 a month for the extra $1200 due in 2009 and $100 for the $1200 deficit in 2008). Of course in 2010 that 2008 $100/month ends, but is that an increase you want to be shouldering next year?
This is the way my mortgage works (I confirmed it last night with Chase), and I'm sure it's true for many of yours as well. Keep this in mind as you talk to the city council members. Year 1 taxes will be an even heavier burden than you may believe now.
Reply to this
This will impact your vehicles too! You'll pay city taxes on top of the county taxes you already pay, plus a $10 privilege fee for registering your car in the City of Greensboro.
Here's a website with more information (including the City tax rates) about annexation: http://www.greensboro-nc.gov/residents/annexation/faq.htm
Reply to this