Madison County real estate has a new tax rate–for now.
On Tuesday supervisors approved an equalized rate of $0.49 per $100 of assessed value for real estate. The new rate is far below the former rate of $0.74, which has been in place since 2020.
The equalized tax rate is a reflection of the county’s recent reassessment. In accordance with state requirements, Wingate Appraisals was hired to complete the county’s six-year reassessment. By law, localities must reassess at least every five or six years. The results of the reassessment were an overall 50% increase for owners of the 9,547 parcels in Madison County. The median increase of residential property in town was 43% and in the county, 57%. The median increase for multi-family homes was 43%; commercial and industrial, 16%; agricultural up to 99 acres, 45% and over 100 acres, 41%. Overall, the estimated fair market value went from $2.7 billion collectively to $4 billion.
By law, the county must equalize the rate to within 1% of the prior real estate tax revenue.
The equalized rate may not be in use for very long though.
Last week, supervisors voted to advertise a three-cent increase in the real estate tax. The move comes after more than a month of weekly conversations aiming to whittle down the draft FY26 budget. Last month, supervisors voted to level fund any of the board’s discretionary contributions to agencies and organizations. Any agency not receiving funding in the current budget will also not receive funding in the FY26 budget. Discussions have also occurred regarding leases versus purchases of capital needs and pushing others to future years. Funding in the draft budget for schools is at $309,632, less than the latest request of $677,000, with a possible contingency set-aside of $200,000 to cover recent changes in the governor’s budget. A request by EMS to add a full-time position and a powershift were both removed.
Finance director Jennifer Warren said the goal is to balance the budget and with the cuts, a 3-cent tax increase is needed. This doesn’t include the capital needs and even with the 3-cent increase, a beginning appropriation from the fund balance of approximately $250,000 would be needed. One penny yields approximately $280,000.
“[This] year’s beginning appropriation was $2.6 million, but that included capital,” she said. “The issue for the county really is the capital. Although we can balance the budget by raising a few pennies, it’s really how can we fund capital into the future?”
Supervisor Jim Jewett said the county has to increase its tax base. He noted that the recently approved economic development plan aims to do just that. An economic development committee began working on the plan in the fall of 2024 and submitted it to supervisors for approval last month. The plan aims to look at tax and zoning policies, as well as the site development process, needed utility infrastructure and workforce initiatives, focusing on developing new businesses and nurturing existing businesses to create a greater tax base and more employment opportunities for residents.
Board of supervisors chairman Clay Jackson said “no one wants to do any kind of tax increase in any way.” He said one or two cents is much more palatable than three.
Warren said the challenge is the county needs to have additional revenues to fund capital which are nonexistent currently.
Supervisors agreed to advertise a three-cent real estate tax increase. Legally, they can always choose to enact a lower increase, but cannot exceed the advertised amount. A hearing on the tax rate will be held later this month.
