Asheville property owners will pay more this year after the City Council, in a five-to-two vote on Monday, approved a 4.2 percent property tax increase. The change, which takes effect July 1, aims to address a $12 million budget deficit. It will impact an estimated 45,000 property owners within city limits, adding an average of $120 to $150 annually to the tax bill for a $300,000 home, as many in western North Carolina already grapple with rising living costs.
The increase translates to an additional $0.068 per $100 of assessed property value, bringing the total rate to $1.62 per $100. City officials project the revenue boost will be $8.5 million, covering 70 percent of the deficit. Fees and cuts will address the remainder. The Asheville Chamber of Commerce estimates that local businesses with property taxes can expect average increases of $500 to $2,000 yearly.
Several economic pressures in greater Asheville preceded the decision, including a 15 percent dip in tourism after the 2024 hurricanes and state funding cuts to local governments. The public hearing drew 200 attendees, with about 40 percent voicing opposition, citing strains from the $1.2 billion in regional damage caused by Hurricane Helene in 2024. Supporters, including school board representatives, emphasized the need to maintain funding for Asheville City Schools. Local property taxes account for 15 percent of the schools' budget, potentially affecting 2,500 students.