New SouthPark property tax receives first of two approvals. Here’s what it will pay for.
Property taxes in SouthPark could increase in July after the Charlotte City Council gave preliminary approval Monday night to a special designation aimed at helping fund community-development projects.
The council gave the first of two OKs to a new property tax there — 4 cents per $100 of assessed property value. The second and final approval is expected to happen in April, Mayor Vi Lyles said during the council meeting Monday.
City staff could not immediately confirm how many homeowners will be affected by the change, but planned to investigate after a question from councilwoman Dimple Ajmera.
The vast majority of property subject to the new tax is held by commercial owners, including owners of office buildings, apartments and commercial spaces. Less than 3% of the taxable property is held by individual home, townhouse or condominium owners, according to a city presentation.
The borders of the new taxable district, which is in south Charlotte, include much of the area around the SouthPark Mall, from the shopping area south of Fairview Road to the area just north of Rexford Road.
If approved in April, the tax will go into effect for the fiscal year beginning July 1 and is expected to generate $1.38 million annually.
What will new SouthPark tax pay for?
The proposal will make the SouthPark area a municipal service district, which allows taxes to be levied to pay for marketing and improvements. Charlotte has five municipal service districts — three in uptown, one in South End and one in University City.
The city will collect taxes within the new district and provide revenue to SouthPark officials. Money could be used for branding, promotion and marketing of SouthPark as well as beautification, installing bike racks, safety lighting and paying for staff to communicate with public and private agencies.
The money also will help pay for a planned 3-mile pedestrian and bike path, which encircles the area surrounding the SouthPark Mall, according to the city presentation. The total estimated cost of that project is $25.7 million.
Ajmera said the city received emails from residents who were concerned about the impact of the new tax.
Councilman Tariq Bokhari said the city has looked into those complains and is working to resolve them.
Christina Thigpen, Charlotte’s deputy director of economic development, said the city has worked to ease concerns and explain potential benefits the tax could provide.
“I was very familiar with the residents who wrote in as well and most everybody was from Piedmont Row,” which has been exempted from the tax, Thigpen said.
This story was originally published March 29, 2022 at 11:51 AM.
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