Asheville homeowners will see an average increase of $180 on their annual property tax bills after the City Council voted 5-2 on Monday to raise taxes 4.2% for the upcoming fiscal year. The increase is meant to address a $12 million budget deficit, which officials blame on rising infrastructure costs and stagnant state funding. Effective July 1, 2026, the tax hike has sparked debate among residents and business leaders concerned about economic pressures amid inflation and a slowdown in tourism.
The tax increase applies to all properties in Asheville and extends to unincorporated areas of Buncombe County via an interlocal agreement. While the city projects the tax hike will generate $8.5 million in revenue, it also plans cuts to public transit and parks maintenance. Opponents of the tax increase cited regional job losses in tourism, which are down 3% since 2025, and the area's average household income of $62,000. The appeals process for the tax increase opens March 1.
The council's decision follows a series of economic challenges in Western North Carolina. Recovery costs from Hurricane Helene exceeded $500 million last fall, and a new state law caps municipal revenue growth at 2% annually. To offset tourism declines, a job fair is scheduled for March 5, targeting 1,200 openings in healthcare and manufacturing. Proposed sales tax adjustments at the county level are also under consideration.
The Asheville City Council voted 5-2 on Monday to raise property taxes by 4.2% for the 2026-27 fiscal year. The increase aims to generate about $7.5 million of the needed $12 million to balance the budget amid rising costs for public safety and infrastructure. The increase affects over 45,000 parcels in the city, with two council members opposing it, citing the burden on fixed-income residents. Community members voiced mixed reactions during public comment, highlighting strains from recent hurricane recovery and inflation.