Until 2031, Cherokee County taxpayers will be burdened by a higher property tax rate, thanks to its Department of Social Services.
Twenty-six lawsuits were filed against the county in 2018 and 2019, stemming from the department’s use of custody and visitation agreements to place children outside of their parents’ homes without court approval. After multiple several cases, the board of commissioners unanimously approved a $48.5 million settlement – including $24.25 million not covered by insurance – in 2022 to resolve more than 20 remaining lawsuits stemming from the practice.
The settlement added an additional 8 cents to the county’s millage rate. Cherokee County paid $4 million of the settlement in 2023, then about $2.9 million per year beginning in July and ending in 2031.
With a millage rate of 61 cents per $100 of assessed value, Cherokee County is surrounded by counties in the far-western part of the state with lower tax rates. However, Cherokee County ranks near the middle statewide at 47th out of 100 counties.
Compared to neighboring Macon County, competition is stiff. Macon ranks first in the state for low property tax rates – 27 cents per $100 of assessed value. Clay County also compares well to the rest of the state, at 12th lowest (43 cents), with Swain County ranking 11th (41 cents) and Jackson County ranking seventh (38 cents).
Western outliers include Graham County, ranked 41st (59 cents) and Transylvania County (46th, 60.33 cents).
Counties with low property tax rates tend to be concentrated in the western third of the state, with pockets elsewhere around Wilmington, Morehead City, Raleigh, Pinehurst and Burlington.
The county with the highest property tax rate is Scotland, ranked 100th with a property tax millage of 99 cents per $100
Per capita
Per capita, Cherokee County compares more favorably with its neighbors. This metric takes the total tax levy of each county and compares it to population.
While most rankings in the County Map Book put best ratings first, this category puts highest per-capita tax levy first. For example, Hyde County on the coast ranks first, with a per-capita tax levy of $2,249, with total tax levy of $10.2 million (ranked 93rd).
Many local residents perceive Cherokee County as a high-tax county, but the data shows it near the middle. Statewide, 22 North Carolina counties have per-capita property tax rates of $1,000 or more, with Hyde County coming in at $2,249.
For total tax levy per capita for the 2023-24 fiscal year, Cherokee County ranked 43rd in the state – still near the middle – but not substantially different than Macon County (39th) and Clay County (52nd). Graham County ranked seventh, while Swain County ranked 100th.
According to the data, Cherokee County’s property tax levy in the 2023-24 fiscal year was $868 per capita (again, 43rd), with a total levy of $25.3 million (ranking 73rd in the state).
Swain County, on the other hand, had a per capita levy of $535 (ranked 100th, the worst) with total levy of $7.4 million (ranked 99th, second to last). Graham County’s per-capita levy was $1,288 (ranked seventh) with a total levy of $9.9 million (ranked 94th).
Clay County’s per capita levy was $789 (ranked 52nd), with a total levy of $9.3 million (ranked 95th). Macon County’s per capita levy was $918 (ranked 39th) with a total levy of $35 million (ranked 61st).
Taxable property valuation
This metric identifies counties with high property value, and in that regard, Cherokee County underperforms compared to most of its neighbors.
This category shows each county’s assessed property valuation in total and per capita. Higher-ranking counties are clustered in the far west, around Charlotte and Raleigh, and along the coast.
Macon County ranked third, Jackson fifth, Graham 12th, Clay 22nd and Swain 37th, while Cherokee County came in 42nd, once again near the middle in state rankings, but more poorly than its neighbors.
Cherokee County’s total property valuation was at $4.149 billion (67th in the state), while per capita was $142,317 (42nd in the state). Macon County total valuation was at $12.947 billion (ranked 32nd) and per capita was $339,994 (ranked third).
Graham County total valuation was $1.683 billion (93rd) and per capita was $218,224. Clay County had $2.165 billion in total valuation and per capita at $183,550.
Local option sales taxes
In addition to the state’s 4.75% sales tax, Cherokee County charges two other sales taxes: Article 40/42 (half cent, with 30% of proceeds that must go to school capital), and Article 46 (quarter cent, with no restrictions). Both additional sales taxes were approved by voters.
Article 46 sales tax revenues had been used exclusively by Cherokee County Schools and was sold to voters for that purpose. However, the wording was vague. Funds went to schools until earlier this year, when the board of commissioners detached the tax from the schools to help pay for general county expenditures.
County officials say the Article 46 decision helped the county avoid an increase in property taxes for the 2024-25 fiscal year, but it cost county schools about $1.2 million in available annual proceeds.
Together, Cherokee County’s sales tax rate is 7%, putting it on par with Graham and Clay counties, and even with 42 other North Carolina counties.
Orange and Durham counties charge the highest sales taxes at 7.5%, while 50 counties charge 6.75%, including Macon County. Wake (Raleigh) and Mecklenburg (Charlotte) charge 7.25%.
Present use valuation
The Present-Use Value Program allows reduced tax assessments for individually owned property used for agriculture, horticulture or forestry.
The highest-ranking counties tend to be along the coastal plain, one county inland of the coast and along the Virginia line.
Western North Carolina counties tend to use this program infrequently – 4% in Cherokee County, 4% in Clay, 3% in Graham and 2% in Macon. Compare that to Anson County (21%), Gates (20%), Greene (20%), Hyde (19%), Jones (21%) and Tyrrell (22%).
