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Home My WebLink AboutAgenda - 04-06-2021; 7-a - 2021 Orange County Revaluation Results 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 6, 2021 Action Agenda Item No. 7-a SUBJECT: 2021 Orange County Revaluation Results DEPARTMENT: Tax Administration ATTACHMENT(S): INFORMATION CONTACT: PowerPoint Presentation Nancy Freeman, Tax Administrator, (919) 245-2735 PURPOSE: To receive an overview of findings from the 2021 countywide revaluation. BACKGROUND: North Carolina counties must conduct a revaluation at least once every eight years. Orange County's last revaluation took effect January 1, 2017. The effective appraisal date of the 2021 revaluation is January 1, 2021. Tax office staff began working on the 2021 revaluation in 2019. A collaborative approach was taken throughout the entire 2021 revaluation, and community involvement helped improve the process. In February 2020, the tax office proactively sent each real property owner a snapshot of the property's public record. Property owners were asked to return the form with any corrections to the data provided. This was an effort to ensure accurate records. Of the approximately 41,500 forms that were mailed out, the Tax Office received approximately 4,300 responses. Conducting a countywide revaluation takes significant effort and staff dedication. Orange County has approximately 57,100 real property parcels, and each of those parcels has been modified to reflect a current estimate of market value. The schedule of completing the revaluation has been affected by the pandemic. During the height of the pandemic, appraisers limited field visits to curbside reviews. For the majority of the last year, appraisers have based their work from home with minimal time in the office in order to maintain the health and safety of staff and the public. Revaluation notices were mailed on March 24, 2021, and an appeal form was included in each notice. 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 Impact associated with this item. RECOMMENDATION(S): The Manager recommends that the Board receive this overview. 2021 REVALUATION RESULTS APRIL 2021 . Nancy Freeman - Tax Administrator 3 What is a Revaluation? --I - Process of updating real property tax assessments to market value and present-use value as of a single appraisal date ❑ Primary goal is to equalize tax base ❑ Effective appraisal date for Orange County's revaluation is January 1 , 2021 4 What is Included in a Revaluation All residential and commercial land throughout Orange County and permanent structures. ❑ What is not included? Business personal property 0 Motor vehicles, boats, airplanes 13 Public utility property 5 Community Outreach Real Property Record Card website launched July 2019 0 Provide current information on record 0 Interactive webpage: review property data, report Issues ❑ Public Comper website launched July 2019 Review property as compared to similar properties Validation Form Mailing in February 2020 La Partnered with the community to gather the most accurate data possible F Over 4,300 responses to update data (continued next page) 6 Community Outreach (continued ) ❑ Revaluation Information Insert mailed with 2020 Tax Bill in July 2020 Revaluation Video Launched on Website in July 2020 Explains the basics of a Revaluation Presentation at Schedule of Values Public Hearing for the at Board of Commissioners meeting in October 2020 ❑ Revaluation Information Insert mailed with 2021 Listing Form in December 2020 7 Commercial Appraisals ❑ Local commercial real estate appraisal firm provided market research, sales ❑ A second commercial appraisal firm interpreted market research and provided recommended values for all commercial parcels, taking into account effects of pandemic ❑ Orange County senior appraisal staff reviewed recommended values 8 Residential Properties M & W_ ❑ Strong seller's market for residential properties o Demand for residential properties driven by: Federal government's continued actions to keep interest rates low Pandemic-related circumstances of stay-at-home orders Increased demand, decreased inventory due to cessation of construction early in pandemic ❑ Comparison to other counties Survey of counties conducting a revaluation in 2021 show average county-wide growth of 16.8%. L Range from 8% to 36% 13 Twelve counties responded 9 Real PropertyChangeby Area EstimatedJurisdiction 2021 Percentage . Tax Base Growth From 2020 Revaluation Countywide $21 ,739,530,791 12.6% 20.1 % Carrboro $2,806,444,019 14.6% 19.% Chapel Hill $8,874,302,213 13% 18.3% Hillsborough $ 1 ,491 ,892,443 20.5% 46.7% Mebane $570,146,470 44.2% 49.9% io Countywide Tax Base ❑ 2021 Countywide Tax Base is $ 21 ,739,530,791 L Overall percentage of growth from 2020 to 2021 is 1 2.6% ❑ Overall percentage of growth from the most recent revaluation in 2017 is 20. 1 Residential represents approximately 77% of the 2021 tax base, and commercial 23% ❑ Residential overall growth is approximately 36% ❑ Commercial overall growth is approximately 11 11 Industry Standards I --INK, mu Sales Ratio Industry Standards Coefficient of Jurisdiction Median Ratio Actual Dispersion Actual Countywide .90 - 1.10 100.5 5.0 - 15.0 7.7 Chapel Hill .90 - 1.10 100.1 5.0 - 15.0 7.4 Carrboro .90 - 1.10 100.2 5.0 - 15.0 7.4 Hillsborough .90 - 1.10 1.01 5.0 - 15.0 5.4 Mebane .90 - 1.10 101.1 5.0 - 15.0 7 *Standards taken from the International Association of Assessing Officers 12 Industry Standards MUNN I I ❑ Sales Ratios are verified by category of property. The ratios indicate tax assessments represent about 100% of current market sales. The coefficient of dispersion (COD) indicates the data spread, and the goal is 15 or lower. ❑ Countywide: Sales Ratio 100.5, COD 7.7 ❑ Improved Residential: Sales Ratio 100.5, COD 7 ❑ Improved Commercial: Sales Ratio 100.6, COD 14.8 ❑ Vacant Land: Sales Ratio 100. 11 COD 15.2 13 Average Vajjr r Home Average Values of Homes based on Jurisdiction Piuris . . llueNIIIIIIIIIIIIIII Ak Countywide $368,319 $310,600 Carrboro $393,657 $369,300 Chapel Hill $483,643 $417,200 Hillsborough $277,180 $236,200 Mebane $223,381 $2221100 Values include building, land and other features such as garages/sheds. Townhomes and condominiums are excluded. 14 Remaining Schedule New values available on website March 22, 2021 Notices mailed March 24, 2021 ❑ Final mailing of revaluation notices of approximately 300 commercial properties, anticipated by March 31 , 2021 Deadline for informal appeals April 30, 2021 ❑ Board of Equalization & Review to convene Monday, May 3, 2021 15 Revaluation Notice Mailing 0 5 1 EW- ❑ Revaluation notice 0 Includes information on webpage to appeal online ❑ Informal appeal form included Informal appeal form instructions Information on websites to review data and find comparable sales included 16 Appeal Process Review property characteristics at Real Property Search Webpage: bit.ly/3k2Lfv3 o Check square footage, bath count, etc. Please allow reasonable margin of difference: 5% per NC Residential Square Footage Guidelines ❑ Compare property to nearby property sales at Comper Webpage: bit.ly/2MhUpau Please allow reasonable margin of difference: 5% Submit appeal form included with revaluation notice, or complete appeal process online at https//appeaIs.spatialest.com/nc-orange 17 For More Information ❑ Contact the Orange County Tax Office: 0 919-245-2100 reval@orangecountync.gov Live chat by visiting: www.orangecountync.gov/departments/tax/