Iredell County Tax Rate… Higher, But Still Extremely Competitive

After considerable debate, the Iredell County Commissioners voted last month to raise the property tax rate from .445 to .485. This increase was made necessary, to a great extent, by the 2011 property revaluation which, overall, decreased the cumulative value of property in the county and with it, the amount of taxes collected on that property. The North Carolina Association of County Commissioners (NCACC) reported that Iredell County now has the 21st lowest tax rate among North Carolina’s 100 counties, up from 17th in 2010.

In terms of economic development and business recruiting, the general rule is the lower the property tax rate, the better. For companies with tens of millions of dollars invested in plants and equipment, even a very small difference in tax rates can have a significant financial impact. However, a closer analysis of the data provided by the NCACC shows some interesting points which we, as economic developers in Iredell County, can use to our competitive advantage when discussing tax rates:

• Iredell County is still in the lowest quartile for property tax rate in North Carolina;

• Iredell County still has the lowest property tax rate in either the Charlotte or Raleigh metropolitan regions;

• Of the 20 counties with lower property tax rates, 14 could be categorized as “extremely rural,” with a population density less than 100 people per square mile (manufacturing operations typically require a more populous recruiting area and larger cities and towns with more available business infrastructure);

• Of the 6 counties with lower property tax rates and a population density over 100/sq/mile, none has a through-Interstate, and only New Hanover County has direct Interstate access at all (the eastern terminus of I-40 is near Wilmington).

So, while there are certainly counties with lower property tax rates, no county can match Iredell’s tax rate relative to its combination of workforce, transportation, location and business infrastructure.

- -

John B. Marek is an innovative marketing and economic development professional with more than 25 years combined experience in the industrial, retail, technology and public sectors. www.johnbmarek.com