What is a “revenue neutral” tax rate?
“Revenue neutral” is the new tax rate that would produce the same tax levied last year, but adjusted for average annual growth in the tax base since the last revaluation. In developing a “revenue neutral” tax rate, officials also must consider the new tax rate’s impact on revenues from personal property, motor vehicles and utility companies, which are not included in the revaluation of real property. Commissioners have asked staff to prepare a budget based on a “revenue neutral” tax rate.
