Raleigh mayor hopes downtown growth can keep property taxes from spiking
Add Axios as your preferred source to
see more of our stories on Google.
Photo: Visit Raleigh
After several years of property tax increases, Raleigh Mayor Janet Cowell fulfilled one of her campaign goals earlier this year when she passed a city budget that raised salaries for city workers and police while not raising property taxes.
Why it matters: Wake County's property valuations soared in 2024, and Cowell told a group of reporters that she hears frequently from residents who are feeling the pinch from taxes, especially for retired residents on fixed income and in neighborhoods like Southeast Raleigh.
Driving the news: Cowell, a former North Carolina state treasurer, said Wednesday that she hopes to leverage growth in downtown as well as fast-growing North Hills to keep property taxes from growing too quickly for residents.
- At the same time, she said, the labor market has softened in the past year, which could put less pressure on the city to raise salaries to attract workers — a huge pressure point on the city's budget in recent cycles.
What they're saying: "As past state treasurer, you think about, 'How do I keep those property taxes down?'" Cowell said. "And to some extent, it's pro-growth building using existing infrastructure" rather than annexing a new subdivision that might need another fire station.
- "A 37-story tower on Glenwood South is hugely additive to our property tax base with very little additional infrastructure needed," she added.
State of play: Downtown Raleigh is the largest property tax contributor in the city, followed by North Hills, Cowell added, noting she wants to keep those areas healthy and growing so they can offset potential tax increases on residents.
Between the lines: Those comments come as the Raleigh City Council will have to hear two rezoning cases that have become controversial with some nearby residents.
- In the coming months, the city council will have to make decisions on whether to allow heights up to 30 stories on Peace Street near the future Smoky Hollow Park, as well as Kane Realty's request to build more high rises at North Hills.
What they're saying: "How do you explain that keeping downtown really healthy and contributing to your property tax base is critical to keeping your property taxes low," Cowell said.
- "I think that's not only a challenge for residents, but even on our city council," she added. "You've got counselors representing more far-flung districts who wonder why we put the amount of money we do into downtown."