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HomeMy WebLinkAboutAgenda - 03-16-2010 - 8dORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 16, 2010 Action Agenda Item No. ~_ SUBJECT: 2009 Revaluation Report DEPARTMENT: Tax Administration PUBLIC HEARING: (Y/N) No ATTACHMENT(S): 2009 Revaluation Report INFORMATION CONTACT: Jo Roberson, (919) 245-2735 PURPOSE: To provide a report to the BOCC on the 2009 Revaluation results including data on the informal appeal process, the Board of Equalization and Review, Property Tax Commission appeals, and the 2009 sales ratio. BACKGROUND: On May 5, 2009 the BOCC directed the County Manager to bring back to the Board a report related to the 2009 Revaluation. The Board asked that the report include data "on the results of the informal appeals, the appeals to the Board of Equalization and Review, and an analysis of the sales that occurred in 2009 as compared to the assessed values in 2009". FINANCIAL IMPACT: There is no financial impact associated with the Board receiving the report. RECOMMENDATION(S): The Manager recommends the Board receive the report. 2 2009 Orange County Revaluation Report APPEAL DATA The 2009 revaluation became effective January 1, 2009 amid a nationwide recession and constant national news reports of significant real estate declines. The 2009 revaluation averages, however, reflected Orange County overall real estate value increases since January 1, 2005 .(previous revaluation effective date) of twenty-four percent. In 2009 approximately 5,026 informal appeals and 1,656 formal appeals were filed, reviewed, and decided on by appraisal staff and the Board of Equalization and Review. The results of these efforts are described as follows: Informal Anneals: Informal appeals were accepted and reviewed from December 10, 2009 through the month of March 2010. 5,026 property values appealed 3,073 property values adjusted 1,953 property values unchanged Formal Anneals: The results of the informal reviews were mailed in mid April with appellants notified of their right to appeal further to the Board of Equalization and Review. This Board began the formal hearing process in April and continued through mid December 2010. * 1,656 property values appealed *992 property values adjusted (99% downward) *664 property values unchanged (469 appealed with no change, 77 canceled, and 118 no shows) *All are approximates North Carolina Property Tax Commission Anneals: The Board of Equalization and Review mailed decision notices periodically during 2010 and in these notices appellants were further informed of their rights to appeal further to the North Carolina Property Tax Commission. There are currently 182 properties under appeal to the Property Tax Commission. 3 SALES RATIO ANALYSIS In order to produce a thorough analysis of the sales that occurred in 2009 as compared to the assessed values in 2009, three different sources were utilized; the database defined by the North Cazolina Department of Revenue and the basis for the annual state sales ratio analysis, the county sales database, and county sales from the local multiple listing service. All three sources produced very similar results as shown below: North Carolina Department of Revenue Sales Study # of sales: 245 Average ratio of assessed value to sale price: 100% Median ratio of assessed value to sale price: 98.60% Measure of how closely values cluster around the median *(COD): 12.64 *The statistical measure of how closely values cluster around the median is known as the coefficient of dispersion (COD). The lower the COD the more consistently the assessed values cluster around the sales, so the lower the COD the better the revaluation results. The state considers any COD of 20 and below to be acceptable. Orange County has always maintained a COD well below 20. County Sales Database # of sales: 1,326 Average ratio of assessed value to sale price: 98.81 Median ratio of assessed value to sale price: 98.87% Measure of how closely values cluster around the median (COD): 10.06 Sales from Multiple Listing Service # of sales: 1,201 Average ratio of assessed value to sale price: 100.40% Median ratio of assessed value to sale price: 100.00% Measure of how closely values cluster around the median (COD): 9.68 Reconciliation: Indications are that the county real estate market has overall remained flat through 2009, and the revaluation values overall continue to be fair, equitable, and reflective of the current market.