HomeMy WebLinkAboutAgenda - 09-15-20; 8-b - Submission of 2021 Reappraisal Schedules of Values
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: September 15, 2020
Action Agenda
Item No. 8-b
SUBJECT: Submission of 2021 Reappraisal Schedules of Values
DEPARTMENT: Tax Administration
ATTACHMENT(S):
Advertising Notice
North Carolina General Statute 105-317
Revaluation Frequently Asked Questions
UNDER SEPARATE COVER:
2021 Revaluation Schedules of Values
On file in the Tax Administration Office
and Clerk’s Office and Available Online
at:
https://www.orangecountync.gov/878/Re
valuation
INFORMATION CONTACT:
Nancy T. Freeman, Tax Administrator,
(919) 245-2735
PURPOSE: To:
1) Receive the proposed 2021 Reappraisal Schedules of Values (SOV);
2) Review a statutory-compliant timeline of the proposed adoption process; and
3) Schedule a public hearing on October 6, 2020 concerning adoption.
BACKGROUND: Per North Carolina General Statute (NCGS) 105-317(c)(1), “the [Tax]
Assessor shall submit the proposed schedules, standards, and rules to the board of county
commissioners not less than 21 days before the meeting at which they will be considered by the
board. On the same day that these are submitted to the board for its consideration, the
assessor shall file a copy of the proposed schedules, standard, and rules in his [or her] office
where they shall remain available for public inspection.”
In addition, NCGS 105-317(c)(2) states “upon receipt of the proposed schedules, standards,
and rules, the board of commissioners shall publish a statement in a newspaper having general
circulation in the county stating:
a. That the proposed schedules, standards, and rules to be used in appraising real property
in the county have been submitted to the board of county commissioners and are
available for public inspection in the assessor’s office; and
b. The time and place of a public hearing on the proposed schedules, standard, and rules
that shall be held by the board of county commissioners at least seven days before
adopting the final schedules, standards, and rules.”
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The timeline for the 2021 Reappraisal Schedule of Values adoption process is as follows:
• September 15, 2020: Submission to Orange County Board of Commissioners
• September 16, 2020: Advertise in newspaper
• October 6, 2020: Public hearing on SOV
• November 5, 2020: Adoption of SOV
• November 6, 2020: Publish 1st notice of adoption
• November 13, 2020: Publish 2nd notice of adoption
• November 20, 2020: Publish 3rd notice of adoption
• November 27, 2020: Publish 4th notice of adoption
• December 5, 2020: Last day for taxpayer to appeal the SOV
FINANCIAL IMPACT: There is no financial impact associated with this item.
SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated
with this item.
ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal
impact associated with this item.
RECOMMENDATION(S): The Manager recommends that the Board:
1) receive the proposed schedules, standards, and rules from the Tax Administrator;
2) schedule the public hearing on October 6, 2020 concerning their adoption; and
3) direct staff to publish in The Herald-Sun, the News of Orange, and The News & Observer
the proper advertisements concerning the public inspection and public hearing times.
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NOTICE OF ORDER
Per North Carolina General Statute 105-317(c)(1)(2), on Tuesday, September
15, 2020, the County Assessor submitted the proposed 2021 schedules of rules,
standards, and values for market value and present–use value for the 2021
countywide reappraisal, to the Orange County Board of County Commissioners.
The proposed schedules of rules, standards, and values will be available for
public inspection at the Orange County Tax Administration Office on the second
floor of the Gateway Center located at 228 South Churton Street in Hillsborough,
and the Clerk to the Orange County Board of Commissioners Office at the
Whitted Building located at 300 West Tryon Street in Hillsborough, between
8:00AM and 5:00PM, Monday through Friday. As we are not currently open to
the public due to the current public health concerns,
contact tax@orangecountync.gov or 919-245-2100, option 2 to schedule an
appointment to review the copy on file or to request an electronic copy. In
addition, it is available for review online
at: https://www.orangecountync.gov/878/Revaluation
There will be a public hearing regarding the proposed schedule of rules,
standards, and values at the regularly scheduled Board of County
Commissioners meeting on October 6, 2020, which will be held virtually. View
and listen at http://www.orangecountync.gov/967/Meeting-Videos. Provide written
public comment by submitting to ocbocc@orangecountync.gov. Contact the
Clerk to the Board by email ocpubliccomment@orangecountync.gov before
3:00PM on October 6, 2020 to speak during the meeting.
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G.S. 105-317 Page 1
Article 19.
Administration of Real and Personal Property Appraisal.
§ 105-317. Appraisal of real property; adoption of schedules, standards, and rules.
(a) Whenever any real property is appraised it shall be the duty of the persons making
appraisals:
(1) In determining the true value of land, to consider as to each tract, parcel, or
lot separately listed at least its advantages and disadvantages as to location;
zoning; quality of soil; waterpower; water privileges; dedication as a nature
preserve; conservation or preservation agreements; mineral, quarry, or other
valuable deposits; fertility; adaptability for agricultural, timber-producing,
commercial, industrial, or other uses; past income; probable future income;
and any other factors that may affect its value except growing crops of a
seasonal or annual nature.
(2) In determining the true value of a building or other improvement, to consider
at least its location; type of construction; age; replacement cost; cost;
adaptability for residence, commercial, industrial, or other uses; past income;
probable future income; and any other factors that may affect its value.
(3) To appraise partially completed buildings in accordance with the degree of
completion on January 1.
(b) In preparation for each revaluation of real property required by G.S. 105-286, it
shall be the duty of the assessor to see that:
(1) Uniform schedules of values, standards, and rules to be used in appraising
real property at its true value and at its present-use value are prepared and
are sufficiently detailed to enable those making appraisals to adhere to them
in appraising real property.
(2) Repealed by Session Laws 1981, c. 678, s. 1.
(3) A separate property record be prepared for each tract, parcel, lot, or group of
contiguous lots, which record shall show the information required for
compliance with the provisions of G.S. 105-309 insofar as they deal with
real property, as well as that required by this section. (The purpose of this
subdivision is to require that individual property records be maintained in
sufficient detail to enable property owners to ascertain the method, rules, and
standards of value by which property is appraised.)
(4) The property characteristics considered in appraising each lot, parcel, tract,
building, structure and improvement, in accordance with the schedules of
values, standards, and rules, be accurately recorded on the appropriate
property record.
(5) Upon the request of the owner, the board of equalization and review, or the
board of county commissioners, any particular lot, parcel, tract, building,
structure or improvement be actually visited and observed to verify the
accuracy of property characteristics on record for that property.
(6) Each lot, parcel, tract, building, structure and improvement be separately
appraised by a competent appraiser, either one appointed under the
provisions of G.S. 105-296 or one employed under the provisions of G.S.
105-299.
(7) Notice is given in writing to the owner that he is entitled to have an actual
visitation and observation of his property to verify the accuracy of property
characteristics on record for that property.
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G.S. 105-317 Page 2
(c) The values, standards, and rules required by subdivision (b)(1) shall be reviewed
and approved by the board of county commissioners before January 1 of th e year they are
applied. The board of county commissioners may approve the schedules of values, standards,
and rules to be used in appraising real property at its true value and at its present-use value
either separately or simultaneously. Notice of the receipt and adoption by the board of county
commissioners of either or both the true value and present -use value schedules, standards, and
rules, and notice of a property owner's right to comment on and contest the schedules,
standards, and rules shall be given as follows:
(1) The assessor shall submit the proposed schedules, standards, and rules to the
board of county commissioners not less than 21 days before the meeting at
which they will be considered by the board. On the same day that they are
submitted to the board for its consideration, the assessor shall file a copy of
the proposed schedules, standards, and rules in his office where they shall
remain available for public inspection.
(2) Upon receipt of the proposed schedules, standards, and rules, the board of
commissioners shall publish a statement in a newspaper having general
circulation in the county stating:
a. That the proposed schedules, standards, and rules to be used in
appraising real property in the county have been submitted to the
board of county commissioners and are available for public
inspection in the assessor's office; and
b. The time and place of a public hearing on the proposed schedules,
standards, and rules that shall be held by the board of county
commissioners at least seven days before adopting the final
schedules, standards, and rules.
(3) When the board of county commissioners approves the final schedules,
standards, and rules, it shall issue an order adopting them. Notice of this
order shall be published once a week for four successive weeks in a
newspaper having general circulation in the county, with the last publication
being not less than seven days before the last day for challenging the validity
of the schedules, standards, and rules by appeal to the Property Tax
Commission. The notice shall state:
a. That the schedules, standards, and rules to be used in the next
scheduled reappraisal of real property in the county have been
adopted and are open to examination in the office of the assessor; and
b. That a property owner who asserts that the schedules, standards, and
rules are invalid may except to the order and appeal therefrom to the
Property Tax Commission within 30 days of the date when the notice
of the order adopting the schedules, standards, and rules was first
published.
(d) Before the board of county commissioners adopts the schedules of values,
standards, and rules, the assessor may collect data needed to apply the schedules, standards, and
rules to each parcel in the county. (1939, c. 310, s. 501; 1959, c. 704, s. 4; 1967, c. 944; 1971,
c. 806, s. 1; 1973, c. 476, s. 193; c. 695, s. 5; 1981, c. 224; c. 678, s. 1; 1985, c. 216, s. 2; c.
628, s. 4; 1987, c. 45, s. 1; c. 295, s. 1; 1997-226, s. 5.)
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ORANGE COUNTY TAX OFFICE 228 S CHURTON STREET, SUITE 200 PO BOX 8181 HILLSBOROUGH, NORTH CAROLINA 27278 Telephone (919) 245-2100 Fax (919) 644-3332 Nancy T. Freeman, Tax Administrator
10 Frequently Asked Questions on Revaluations
1. WHAT IS A REVALUATION?
Revaluation is a process by which all property tax assessments within a taxing jurisdiction
(Orange County) are reassessed to their market value as of a specific revaluation date. It also is
sometimes called a reappraisal or mass appraisal. The tax office, in this process, reassesses all
real property (land, buildings and other improvements to the land) as of the revaluation date.
Arms-length market sales are used to estimate new tax assessments during this process as well
as other market data such as income/expense information and market building cost
information. This updated tax assessment is effective, generally, until the next countywide
revaluation. Orange County’s next revaluation date is January 01, 2021, and tax assessments
should reflect market value as of that date once the revaluation is completed.
2. WHY HAVE A REVALUATION?
The State of North Carolina requires counties to conduct a revaluation at least once every eight
years (NCGS 105 – 286a). Its purpose is to redistribute the tax burden based on current market
data. As time elapses between revaluations, properties may increase or decrease in market
value at different rates. The State of North Carolina charges counties with assessing property
based on current market data as of each revaluation date.
3. WILL ALL PROPERTY VALUES CHANGE?
Most likely, yes. However, not all property values will change at the same percentage. Market
values may have increased or decreased more for some neighborhoods and property types than
for others. One purpose of a revaluation is to ensure assessed values reflect changes that have
occurred in the marketplace since the last countywide revaluation.
4. WHY APPRAISE AT MARKET VALUE?
North Carolina General Statute 105 – 283 requires counties to assess all property, both real and
personal property, at its true value in money. True value shall be interpreted as meaning
market value. NCGS 105 – 284 establishes a uniform assessment standard. This standard in
effect penalizes counties if they are not assessing property at market value as of the date of last
revaluation.
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5. WHO WILL DO THE WORK?
The Orange County Tax Office is conducting this revaluation “in-house”. This means our own
personnel in the tax office will be evaluating properties along with current market data and
establishing new tax assessments. In addition, we have contracted with professionals to assist us
in specific data categories. By having the revaluation conducted with current personnel and
supplemented by the expertise of additional professionals, we feel this will yield a high-quality
revaluation and better tax assessments for your tax dollars.
6. WHEN DOES THE REVALUATION TAKE EFFECT?
Typical countywide revaluations take between 18 – 24 months to complete. Staff of the Orange
County Tax Office has been reviewing market sales, compiling studies and maintaining a list of
current tax base inventory since the last revaluation, January 01, 2017. Tax office appraisers
began reviewing all properties for the 2021 revaluation in early 2019. Our current goal is to
complete the process by the fourth quarter of 2020. The resulting values will be effective
January 01, 2021. Real property tax bills mailed in July, 2021 will reflect the new revaluation tax
assessment.
7. WHEN CAN I FIND OUT MY NEW TAX ASSESSMENT?
New value notices should be mailed to all taxpayers who own real property in Orange County
between January, 2021 and March, 2021.
8. WILL MY TAXES CHANGE AS A RESULT OF REVALUATION?
Although the value of your property does affect your share of taxes, the actual amount you pay
is determined by budgetary needs of the jurisdictions in which your property is located (county,
city, fire districts, etc.). Governing boards of these taxing units decide what services the
jurisdiction will provide in the coming year and how much money the jurisdiction will need to
provide these services. A tax rate is then adopted to generate the necessary tax dollars.
9. HOW ARE MARKET VALUES DETERMINED?
Various tools are used to extract data from the market. Sales files, sales questionnaires,
multiple listing service, revenue stamps, cost books and ratio studies are a few examples. The
best source for establishing residential market values is arms-length sales of reasonably
comparable properties. Such properties are similar in location, age, style, condition and other
features that may have an effect on market value.
10. WHAT IF I DISAGREE WITH MY NEW TAX ASSESSMENT?
Instructions for appeal will be included with your new value notice. The first appeal level is an
informal hearing with an Orange County Tax Office appraiser. Orange County will make
personnel available to hold informal hearings with the property owner. During this informal
session, the property record card is reviewed and you may request an actual site visit to your
property. North Carolina General Statutes put the burden of proof on the property owner to
show that a tax assessment is inaccurate. Keep in mind that the informal review will be to
ensure your property is assessed at 100% of its fair market value as of the revaluation date,
January 01, 2021. Therefore, an informal appeal could result in an increase, decrease or no
change in assessment. A change in assessment will be considered only if the owner can
demonstrate that the assessed value is more or less than market value as of January 01, 2021, or
that it is inconsistent with assessments of similar properties. Assessments cannot be appealed
based on (1) the percent of increase/decrease or (2) the taxpayer’s ability to pay the tax. The
tax office will send results of informal appeals via mail. The second level of appeal is to the
Orange County Board of Equalization and Review. North Carolina then has a State Property Tax
Commission that hears advanced appeals.
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