CHINA GROVE — The property tax rate in China Grove will decrease by $0.06 per $100 valuation after the town council adopted the budget during its regularly-scheduled meeting on Tuesday night at town hall.

The rate adjustment comes on the heels of the reappraisals that took effect earlier this year.

The new rate, $0.50 per $100, is still $0.10 greater than the rate that would keep the town revenue-neutral. A revenue-neutral rate would generate the same property tax revenue as the year before.

That gap reflects the significant jump in home valuation experienced across the town.

Given the amended property values, the revenue-neutral tax rate would be $0.3954 per $100 valuation, based on the determined $463,629,000 of property value located within China Grove.

Reappraisal is a process in which all real estate values are assessed at their market value as of a specific date. It is required by the state at least once every eight years. However, Rowan County conducts reappraisals every four years.

The last reappraisal was in 2019 when property values were determined to be $327,746,000.

With the current property valuation estimated at $463,629,000, each penny on the tax rate should equal approximately $45,200, yielding revenues of $2,259,000.

Property taxes make up 44.3% of the general fund revenues. Sales tax revenue makes up another 28.5% of the general fund. Those are the two most significant contributors to the town’s general fund.

China Grove Finance Director Tara Nichols, who presented the budget at the meeting, indicated that sales tax growth in the town is anticipated to slow in the next year.

The general fund budget for fiscal year 23-24 is $5,609,950, representing an 8.5% increase from the previous fiscal year’s amended budget.

Other budgetary notes included the approval of a 7% cost-of-living adjustment that had been deliberated among town councilors at previous meetings. No merit-based raises will take effect.

The budget includes capital purchases and additional positions funded in public safety for both the fire and police departments. Capital need expenditures were budgeted for $438,000 to replace police department vehicles and purchase fire department equipment. Funding for a camera, plotter and vehicle for the planning department was also budgeted.

China Grove budgets $250,000 for sanitation collection through a contract with GFL Environmental. The monthly container price of $12.05 will remain in effect.