During my first year as a county commissioner, I have learned a myriad of things about county government and all of the services that we provide for the betterment of Durham County residents, such as EMS, the animal shelter, public libraries, the Department of Social Services (DSS), public schools, etc. To fund these services at the local level, the primary funding sources are property and sales taxes.
Sales tax revenue is generated when individuals buy goods and services. In Durham County, the sales tax rate is 7.5%, with the state retaining 4.75% and the remaining 2.75% being returned to Durham County. In fiscal year 2024-2025, Durham County received approximately $188 million in sales tax revenue. With a General Fund Budget of almost $690 million, that means the bulk of Durham County’s revenue comes from the property tax.
2025 was a reevaluation year for Durham County, and many of our residents experienced sticker shock from rising property values and, consequently, higher property taxes. Across North Carolina, many residents in larger urban counties have seen increases in property values and higher property taxes. Now, the North Carolina General Assembly (NCGA) is stepping in with the creation of the House Select Committee on Property Tax Reduction and Reform.
House Speaker Destin Hall created a twenty-nine-member committee of legislators from across the state to examine the possibility of reforming how property taxes are assessed in our North Carolina counties. Many of you reading this op-ed may think this is a good idea. As a county commissioner, I have heard from many Durham County residents, particularly our seniors, that the increase in property taxes has become quite burdensome. However, the opposite is true. As a community, we should be deeply concerned about the committee’s recommendations. Many of the services we rely on in Durham County to make it a great place to live and that drive our economy are primarily funded by property taxes.
Lawmakers in the NCGA have significantly reduced the personal income tax rate over a ten-year period. In 2015, the personal income tax rate was 5.75%. For 2026, the personal income tax rate is 3.99%.
The corporate income tax rate has decreased further over the same period. In 2015, the corporate income tax rate was 5.00%. In 2026, it is 2.0%. By 2030, the corporate income tax is slated to go to 0%.
With these low personal and corporate income taxes, there is less money for the state general fund, which is the primary funder of public schools. When the state fails to meet its constitutional obligation to fund public schools, residents come to the county commissioners to make up the difference.
Because we value public education in Durham County, the county commissioners have consistently met the challenge of funding DPS due to the NCGA’s underfunding of our schools. In a ten-year period, the Durham County Commissioners’ allocation to Durham Public Schools has increased by almost $100 million, from $128 million in FY2016-2017 to $224.5 million in FY 2025-2026. These amounts do not include the general obligation bonds that Durham County residents approved in 2016 and 2022 to fund the construction and repair of school buildings. Because voters in Durham County value public schools, they overwhelmingly approved a property tax increase to cover these bonds.
If the NCGA exercises its authority to restrict how counties and municipalities raise revenue through property taxes, many of the state- and federally mandated services we provide could be significantly reduced.
The reason counties and municipalities are relying more on property taxes to fund services that our residents need is that our lawmakers in Raleigh are more focused on giving corporations tax breaks and privatizing public goods. Our lawmakers could keep the corporate income tax at its current rate of 2.0%. They could issue a statewide bond to repair all the crumbling school buildings across North Carolina. Better yet, they could fund the Leandro Plan, for which the NCGA owes Durham Public Schools approximately $71 million.
The first meeting of the House Select Committee on Property Tax Reduction and Reform met on December 17, 2025. Based on the committee members’ discussion, there is interest in reforming how property taxes are levied.
The next committee meeting will be Jan. 14, 2026, at 10:00 am. It will be live-streamed on the NCGA website and YouTube.
Call and/or email members of the House Select Committee on Property Tax Reduction and Reform. It is important that they know that residents are paying attention. Tell them that public schools need to be fully funded by the state to take the huge responsibility of funding schools off the counties. Tell them we do not need 0% corporate income tax. Tell them the Leandro Plan needs to be fully funded. Commissioners do not want to continually increase property taxes. We know that it puts a strain on our most marginalized residents. However, when the state fails to fully fund services it is legally required to fund, it leaves elected officials with very few options.
Michelle Burton is serving her first term as a Durham County Commissioner. Prior to serving on the Durham County Board of Commissioners, she served as a school library media specialist for 30 years in North Carolina Public Schools, including 21 years in Durham Public Schools. She served as president of the Durham Association of Educators (DAE) from 2019 to 2023.
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