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HomeMy WebLinkAboutAgenda - 04-18-2023; 4-a - Property Tax Appeals Bias Study Presentation from UNC School of Government 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 18, 2023 Action Agenda Item No. 4-a SUBJECT: Property Tax Appeals Bias Study Presentation from UNC School of Government DEPARTMENT: Tax Administration ATTACHMENT(S): INFORMATION CONTACT: Orange County Property Tax Appeals: Nancy T. Freeman, Tax Administrator, A Systemic Bias Analysis Report (919) 245-2735 PowerPoint Presentation Chad Phillips, Deputy Tax Assessor, (919) 245-2103 PURPOSE: To receive a presentation on the results of the Orange County Property Tax Appeals Bias Study. BACKGROUND: The Tax Administration Office wanted to identify and mitigate potential systemic bias in its property tax appeal process. The primary goal was to determine whether residential property tax appeals are less prevalent and less successful for properties located in majority-minority and low-income neighborhoods as compared to properties located in white and median-and-above-income neighborhoods. The study also considered if residential property tax appeals are less prevalent and less successful for lower value properties as compared to higher value properties. Christopher B. McLaughlin, Professor of Public Law and Government with the School of Government at the University of North Carolina, conducted the study. Professor McLaughlin has conducted similar studies in other North Carolina counties and will present Orange County's data alongside the data from other counties as part of the presentation. Professor McLaughlin has worked with the School of Government since 2008. Mr. McLaughlin works in the area of local government tax and finance, along with ethics for government attorneys. He has written books on property tax collections, tax foreclosures, and occupancy taxes, and has published over 200 blog posts, including subjects such as local taxes and legal ethics. FINANCIAL IMPACT: There is no financial impact associated with this item. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this item: 2 • GOAL: FOSTER A COMMUNITY CULTURE THAT REGJECTS OPPRESSION AND INEQUITY The fair treatment and meaningful involvement of all people regardless of race or color; religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic background; age; military service; disability; and familial, residential or economic status. ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal impact associated with this item. RECOMMENDATION(S): The Manager recommends that the Board receive the presentation and provide any comments and questions. 3 12UNCSCHOOLOF � GOVERNMENT WMEW 08111119A FEBRUARY 2023 Orange County Property Tax Appeals: A Systemic Bias Analysis Christopher B.McLaughlin Orange County contracted with the School of Government at the University of North Carolina at Chapel Hill(the School) to study recent property tax appeal data for evidence of systemic bias (the Study). To conduct the Study,the School analyzed residential property tax appeal data from Orange County's 2021 countywide reappraisal along with related demographic data from the United States Census Bureau (the Census) to determine if appeal rates or appeal results varied based on two independent variables: a neighborhood's White population percentage and a neighborhood's property values.Stated differently,the Study sought to determine whether residential property owners in more White or more expensive neighborhoods were more likely to appeal their property tax appraisals and/or more likely to obtain better appeal results than owners from less White or less expensive neighborhoods.' The data included both informal appeals, meaning properties for which taxpayers contacted the tax office seeking an initial review of their appraisal values,and formal appeals, meaning properties for which appraisal appeals were heard by the county board of equalization and review. Summary of Results The Study identified a generally higher rate of appeals in more expensive neighborhoods.In other words,taxpayers from neighborhoods with higher median property values generally pursued appeals,both informal and formal, more often than did taxpayers from neighborhoods with lower median property values. 1.As used in the Study,the term"neighborhood"refers to"tracts"as defined by the Census.The 39,027 residential parcels included in the Study were distributed throughout forty of the forty-two Orange County tracts created by the 2020 Census.See Methodology for more details.For a map of these tracts, see U.S.Census Bureau,2020 Census—Census Tract Reference Map.Orange County,NC,January 2021, 36.03 x 42.00 in.,https://www2.census.gov/geo/maps/DC2020/PL20/st37_nc/censustract_maps/c37135_ orange/D C20CT_C37135.pdf. 1 ©2023.School of Government.The University of North Carolina at Chapel Hill. 4 2 February 2023 The Study did not identify any consistent relationships between (1) appeal rates and neighborhood White population percentages, (2) appeal results and neighborhood White population percentages,or(3) appeal results and median neighborhood property values. These observations applied to both informal and formal appeals. In other words,there was little evidence that taxpayers in neighborhoods with higher minority populations were less likely to appeal their tax appraisals than taxpayers from Whiter neighborhoods.Nor was there evidence that taxpayers from neighborhoods with higher minority populations or lower property values achieved worse results when they did appeal than taxpayers from Whiter and more expensive neighborhoods. If there were a strong systemic bias in Orange County's appeal process, one would expect to see both higher appeal rates and better appeal results for both more expensive neighborhoods and Whiter neighborhoods. That is not the case.While more expensive neighborhoods tend to have more appeals than do less expensive neighborhoods,the rest of the data provides little evidence of consistent bias. It is important to note that the Study results were influenced by the unusually large number of 2021 reappraisal appeals filed in and around Northside,a historically Black neighborhood near the UNC—Chapel Hill campus.According to a representative from one of the civic organizations that worked with residents from these neighborhoods,the total appeals filed by taxpayers in and around Northside numbered close to 200.As a result,at least two Census tracts in the countyz had much higher appeal rates and larger reductions in appraisal values (i.e.,better appeal results)than would have otherwise been expected,given the statistics from other Census tracts with similar demographics.The impact of the Northside appeals is highlighted where appropriate below. The following tables provide a summary of how the two independent variables—property values and race—affected the two dependent variables—appeal rates (how often taxpayers appealed their tax appraisals) and appeal results(the percentage reduction in tax appraisals resulting from appeals). Appeal Rates—(see Table 1) The higher appeal rate for the more expensive neighborhoods indicated in table 1 appears to be consistent across the data. However,the higher appeal rates for neighborhoods with low White populations are somewhat misleading because that category includes the Northside tracts. For more details,see data on pages 5 and 7. Appeal Results—(see Table 2) Table 2 shows appeal results as percentage reductions in initial appraised value. For example, the 8.9 percent average for all neighborhoods'informal appeals means that the average informal appeal resulted in an 8.9 percent reduction in appraised value.Note that the larger reductions from informal appeals for neighborhoods with low White populations are somewhat misleading because that category includes the Northside tracts. For more details,see data on pages 6 and 8. 2.These tracts,numbered 107.05 and 113,can be located on the map cited in note 1,above. ©2023.School of Government.The University of North Carolina at Chapel Hill. 5 Orange County Property Tax Appeals:A Systemic Bias Analysis 3 Table 1.Rates of Informal and Formal Appeals(%) Neighborhood Group Informal Formal All Residential Properties 2.03 .49 High Property Valuesa 2.80 .74 Low Property Valuesb 1.20 .22 High White Populations` 1.20 .23 Low White Populations' 3.00 .67 a Represents the appeal rate for the roughly 20 percent of residential properties from the Census tracts with the highest median property values.The median property values in this category ranged from$453,200 to $694,600. b Represents the appeal rate for the roughly 20 percent of residential properties from the Census tracts with the lowest median property values.The median property values in this category ranged from$149,400 to $232,700. Represents the appeal rate for the roughly 20 percent of residential properties from the Census tracts with the highest White population percentages.The White population percentage for these tracts ranged from 88.32 percent to 92.8 percent. 'Represents the appeal rate for the roughly 20 percent of residential properties from the Census tracts with the lowest White population percentages.The White population percentages for these tracts ranged from 35.4 percent to 69.7 percent. Table 2.Average Reduction in Initial Appraised Value(%)After Informal or Formal Appeal Neighborhood Group Informal Formal All Residential Properties 8.9 9.2 High Property Valuesa 6.4 6.5 Low Property Valuesb 6.5 7.5 High White Populations` 8.1 10.3 Low White Populations' 14.4 7.2 a Represents the average reduction for the roughly 20 percent of appeals from Census tracts with the highest median property values.The median property values for these tracts ranged from$475,400 to$694,600 for informal appeals and from$498,900 to$659,500 for formal appeals. b Represents the average reduction for the roughly 20 percent of informal appeals from Census tracts with the lowest median property values.The median property values for these tracts ranged from$149,400 to$250,600 for informal appeals and from$149,400 to$287,900 for formal appeals. Represents the average reduction for the roughly 20 percent of informal appeals from Census tracts with the highest White populations.The White populations for these tracts ranged from 83 percent to 92.8 percent for informal appeals and from 81.8 percent to 92.8 percent for formal appeals. 'Represents the average reduction for the roughly 20 percent of informal appeals from Census tracts with the lowest White populations.The White populations for these tracts ranged from 35.4 percent to 68.5 percent for both informal appeals and formal appeals. ©2023.School of Government.The University of North Carolina at Chapel Hill. 6 4 February 2023 Methodology The Study involved 39,027 Orange County residential property tax parcels,'from which there were 793 informal appeals and 190 formal appeals 4 Because it was impossible to determine the actual race for each of Orange County's residential property owners,the Study instead relied on demographic information from the Census, organized by tract.'Each of Orange County's residential property parcels was located in one of the county's forty-two tracts. For each tract,the Census provided White population percentage and median residential property value. The parcel and appeal data were then sorted and organized by these values to determine if either of two independent variables, race (a neighborhood's White population percentage) or property value (a neighborhood's median residential property value),consistently affected either of two dependent variables,appeal rates and appeal results. To better analyze the impact of these independent variables on informal appeals,the 793 informal appeals and the 39,027 residential parcels were each segmented into ten"bins"to enable analysis.Each bin contained roughly 10 percent of the appeals or parcels;bin sizes were adjusted as needed to avoid splitting individual Census tracts into different bins. For each bin, average values were calculated for each dependent variable—appeal rates and appeal results. Scatterplot graphs were then created to determine whether either of those independent variables had a consistent and material impact on either of the dependent variables.6 Detailed results from this analysis of informal appeals are presented below. Because of the small number of formal appeals,dividing that data into bins would not have yielded reliable average values. Instead,the analysis of formal appeals focuses only on the bottom and top 20 percent of each independent variable(neighborhood White population percentage and neighborhood median residential property value).The results for this limited analysis of formal appeals are presented above,under Summary of Results. 3.As used in the Study,the term"residential property"includes any property developed with one or more free-standing homes,multiplex homes,townhomes,and condominiums,regardless of whether it is occupied by the owner or a tenant.The term excludes(1)apartment buildings in which all units are owned by a single party and(2)undeveloped lots.The original data set provided by Orange County included 39,071 parcels,44 of which were removed from the Study because they could not be accurately located in a Census tract. 4.The original data set included 1,042 informal appeals and 198 formal appeals,which included some appeals that produced large increases in final appraised values and some in which taxpayers requested increases in appraised values.Those unusual appeals were removed from the Study.Some properties were in both the informal-appeal and the formal-appeal data sets.Of the 793 properties that were the subject of informal appeals in 2020,74 of them(9 percent)were also the subject of formal appeals in that year.The Study did not look at the substance of any of the appeals and focused only on their identifying characteristics(address,initial property appraisal,taxpayer's requested appraisal,final property appraisal). 5.A Census tract is a statistical subdivision of a county that is larger than a block group,with populations averaging around 3,800 people(U.S.Census Bureau glossary,s.v."Census Tract,"https:// www.census.gov/programs-surveys/geography/about/glossary.html#par_textimage_13).In the 2020 Census,there were 84,414 tracts in the United States,2,672 in North Carolina,and 42 in Orange County. (See"2020 Census Tallies,"Census.gov,U.S.Census Bureau,last modified July 18,2022,https://www. census.gov/geographies/reference-files/time-series/geo/tallies.html#block_by_state). The population of Orange County was roughly 149,000 in 2020,meaning the average population per Census tract was just over 3,500. 6.The data analysis was accomplished by Haki Johnson,a graduate student in the UNC—Chapel Hill Department of City and Regional Planning.The author thanks him for his excellent work. ©2023.School of Government.The University of North Carolina at Chapel Hill. 7 Orange County Property Tax Appeals:A Systemic Bias Analysis 5 Detailed Results for Informal Appeals How Did Property Values Affect Informal Appeal Rates? As property values increased, informal appeal rates also generally increased. Table 3.Informal Appeal Rates by Property Value Median Neighborhood No.of Informal Bin Values($) Rate(%) No.of Parcels Appeals 1 <-198,300 1.08 4,082 44 2 198,301-232,700 1.25 4,636 58 3 232,701-242,600 1.15 3,294 38 4 242,601-267,600 1.00 4,097 41 5 267,601-332,000 3.47a 4,493 156 6 332,001-365,200 3.78a 2,806 106 7 365,201-420,100 1.26 5,079 64 8 420,101-447,600 2.50 3,120 78 9 447,601-498,900 2.41 3,573 86 10 498,901-694,600 3.17 3,843 122 a Bins 5 and 6 contain the Northside tracts.Appraisal appeals from those tracts were unusually high in 2021,inflating the appeal rates for those two bins.Without those appeals,the trend would likely show a more consistent increase in the informal appeal rate from lower to higher property values. Figure 1.Informal Appeal Rates by Property Value 3.78* 4 3.47* 3.17 3 2.50 2.41 0 +°+ 2 1.08 1.25 1.15 1.00 1.26 1 - i;- — -0�—j 0 1 1 <198,300 198,301— 232,701— 242,601— 267,601— 332,001— 365,201— 420,101— 447,601— 498,901- 232,700 242,600 267,600 332,000 365,200 420,100 447,600 498,900 694,600 Median Neighborhood Values($) Asterisks denote values that include appeals from the Northside tracts.Appraisal appeals from those tracts were unusually high in 2021,inflating the appeal rates for those two bins. ©2023.School of Government.The University of North Carolina at Chapel Hill. 8 6 February 2023 How Did Property Values Affect Informal Appeal Results? There was no consistent relationship between neighborhood median property values and informal appeal results. Table 4.Average Reduction in Initial Appraised Value After Informal Appeal,by Median Property Value No.of Bin Median Neighborhood Values($) Avg.Reduction(%) Parcels 1 <220,000 7.63 77 2 220,001-250,600 5.40 83 3 250,601-293,800 9.89 45 4 293,801-295,300 23.04a 101 5 295,301-346,600 5.72 61 6 346,601-365,200 10.748 68 7 365,201-426,000 6.69 88 8 426,001-453,200 5.99 79 9 453,201-536,100 7.92 96 10 536,101-694,600 4.77 95 a Bins 4 and 6 contain appeals from the Northside tracts,which inflated the average appeal results for those two bins. Figure 2.Average Reduction in Initial Appraised Value After Informal Appeal,by Median Property Value 25 23.04* °- 20 c 0 15 10.74* Cr 10 7.63 9.89 7.92 6.69 5.99 4.77 5.40 5 5.72 Q 0 <220,000 220,001- 250,601- 293,801- 295,301- 346,601- 365,201- 426,001- 453,201- 536,101- 250,600 293,800 295,300 346,600 365,200 426,000 453,200 536,100 694,600 Median Neighborhood Values($) Asterisks denote values that include appeals from the Northside tracts,which inflated the average appeal results for those values. ©2023.School of Government.The University of North Carolina at Chapel Hill. 9 Orange County Property Tax Appeals:A Systemic Bias Analysis 7 How Did Race Affect Informal Appeal Rates? There was no consistent relationship between median neighborhood White population percentages and informal appeal rates. Table 5.Informal Appeal Rates by Neighborhood Racial Composition No.of No.of Bin White Population% Rate(%) Parcels Appeals 1 35.4-65.7 2.06 3,248 67 2 66.3-69.7 3.53a 5,011 177 3 69.9-73.7 2.58 3,793 98 4 74.7-79.1 1.42 4,724 67 5 79.2-80.7 3.341 4,526 151 6 81.3-81.7 1.53 3,995 61 7 82.4-83.0 1.03 3,509 36 8 83.1-87.0 1.55 4,000 62 9 88.2-89.7 1.06 3,107 33 10 90.4-92.8 1.32 3,114 41 a Bins 2 and 5 contain appeals from the Northside tracts,which inflated the appeal rates for those two bins. Figure 3.Informal Appeal Rates by Neighborhood Racial Composition 4 3.53* 3.34* 3 X 2.06 2 1.53 1.55 1.32 1.42 1.03 1.06 1 0 35.4-65.7 66.3-69.7 69.9-73.7 74.7-79.1 79.2-80.7 81.3-81.7 82.4-83.0 83.1-87.0 88.2-89.7 90.4-92.8 White Population% Asterisks denote values that include appeals from the Northside tracts,which inflated the appeal rates for those values. ©2023.School of Government.The University of North Carolina at Chapel Hill. 10 8 February 2023 How Did Race Percentages Affect Informal Appeal Results? There was no consistent relationship between neighborhood White population percentages and informal appeal results. The data are summarized in table 6 and figure 4. Table 6.Average Reduction in Initial Appraised Value After Informal Appeal,by Neighborhood Racial Composition Bin White Population% Avg.Reduction(%) No.of Parcels 1 35.4-66.5 4.44 88 2 68.5 23.043 101 3 69.0-69.9 4.53 74 4 70.7-73.7 11.10 77 5 73.8-78.8 5.58 66 6 79.2-79.7 3.61 86 7 80.8 10.74 68 8 81.4-82.8 6.78 83 9 83.0-86.0 5.33 77 10 87.1-92.8 11.11 73 a Bins 2 and 7 contain the Northside tracts,which inflated the average appeal results for those two bins. Figure 4.Average Reduction in Initial Appraised Value After Informal Appeal, by Neighborhood Racial Composition 25 23.04* c 20 0 15 11.10 10.74* 11.11 v v 10 NSS15..518 6.78 5.33 v 5 Q 4.44 4.53 3.61 0 35.4-66.5 68.5 69.0-69.9 70.7-73.7 73.8-78.8 79.2-79.7 80.8 81.4-82.8 83.0-86.0 87.1-92.8 White Population% Asterisks denote values that include appeals from the Northside tracts,which inflated the average appeal results for those values. ©2023.School of Government.The University of North Carolina at Chapel Hill. 11 Orange County Property Tax Appeals:A Systemic Bias Analysis 9 Conclusion What do these results mean for the Orange County tax office and its practices going forward? It may be helpful to put the Study's results in context. Orange County's results were"better" in some sense than the results of recent similar studies that the School conducted for Durham County and Mecklenburg County in that the Orange County study found less evidence of systemic bias 7 In all three counties,the studies found that appeal rates were generally higher for more expensive neighborhoods. But in Durham and Mecklenburg counties, appeal rates were also generally higher for more White neighborhoods.And in Mecklenburg County, appeal results were also generally higher for neighborhoods that were more expensive and more White. That said,remember that the Orange County results were affected by an unusually large number of appeals from taxpayers in and near the Northside neighborhood.Without these additional appeals,it is possible that the Orange County results would have been more similar to those from Durham and Mecklenburg counties. The lower appeal rate among taxpayers who live in less expensive neighborhoods may contribute to a"property tax assessment gap"that benefits Whiter,wealthier taxpayers.This assessment gap is the gap between the ratio of tax assessments to sales prices for Black-owned property versus White-owned property.One national study concluded that the assessment gap in North Carolina was 11 percent.In other words,Black-owned properties in North Carolina were assessed about 11 percent higher than White-owned properties relative to their actual sales prices.This result places North Carolina just below the study's national average assessment gap of 12.7 percent but in the highest third of all states." Most appeals produce reductions in assessed values.'If taxpayers living in less expensive neighborhoods are less likely to appeal their tax appraisals,it follows that the property owned by those taxpayers on average would be assessed higher relative to market value than property owned by other taxpayers. The lower appeal rates for certain groups of taxpayers may occur in part due to a lack of education and information about the process of appealing property taxes.Additional outreach by the tax office targeting less White and less expensive neighborhoods might alleviate some of that information deficit.Taxpayers may be more likely to take advantage of the appeal process if they learn that the process is free,does not require an attorney,and generally does not involve a home inspection.While additional appeals of course increase a tax office's workload,they can also make a mass reappraisal more accurate. 7.See Chris McLaughlin,"Analyzing Property Tax Appeals for Systemic Bias,"Coates'Canons NC Local Government Law(blog),October 4,2021,https://canons.sog.unc.edu/2021/10/analyzing-property- tax-appeals-for-systemic-bias/(Durham study)and Christopher B.McLaughlin,Mecklenburg County Property Tax Appeals:A Systemic Bias Analysis(July 2022),https://www.sog.unc.edu/sites/default/files/ meck_county_appeals_study_final.pdf(Mecklenburg study). 8.For more about the assessment gap,see Chris McLaughlin,"Systemic Bias and Property Taxes," Coates'Canons NC Local Government Law(blog),November 23,2020,https://canons.sog.unc.edu/ systemic-bias-and-property-taxes/. 9.More than 70 percent of all informal and formal appeals included in the Study resulted in reductions in assessed values. ©2023.School of Government.The University of North Carolina at Chapel Hill. Use of this publication for commercial purposes or without acknowledgment of its source is prohibited. Reproducing,distributing,or otherwise making available to a non-purchaser the entire publication,or a substantial portion of it,without express permission,is prohibited. For permissions questions or requests,email the School of Government at publications@sog.unc.edu. Other School reports can be accessed on the Publications page of our website:sog.unc.edu/publications. f- 1 �y r Orange County � 1 Property Tax Appeal - Study r Chris McLaughlin April 18, 2023 �z `J 1 �I C SCHOOL OF GOVERNMENT � � '� �� - • 13 tjNC � SCHOOL OF Purpose of the Study GOVERNMENT • Identify potential sources of systemic bias in the Orange County property tax appeal process • Expand understanding of "assessment gap" for minority homeowners identified by previous studies 14 „SCHOOL . Key Questions Asked By the Study fli UNC � GOVERNMENT • Were 2021 Appeal Rates or Appeal Results affected by: — Neighborhood Minority Population — or — Neighborhood Median Residential Property Value? 15 OF' 1 1 1 1 ' SCH� � LERNMENT • 2021 reappraisal • 39,000 residential tax parcels • 800 informal appeals, 200 formal appeals • 42 Census tracts 16 ° 0 ° 112M ° ° 119.02 11\ II 0 `rJ� ° Chapel Hill ° r o p� C:ha�el 119.61 tit - y HHI N II8011 lilt f - 107,06 ° ° 121.02 114 _ I a ° 107.05 u. / . 1}S �\ MA9 107.01 107-07 116A1 1 WAS 116.02 113.10 ° ° u:.o1 ° 107.09 0 1 o /° 133.03 ° a CHA7HAM 037ao aac as nnaCOo as B000aaaoa - ��. 0 aoao;loa�o,0.a_o,o-.aoa.a.a.n...._. i'- __.....�....tin.�o.a,auno•o-anao.on�a.n.o�o�a410nocao0� 17 • Higher appeal rates in neighborhoods with higher median property values • in other words . . . • Homeowners in more expensive neighborhoods tended to appeal their tax appraisals more often than did homeowners from less expensive neighborhoods 18 _WC SCHOOL OF Results GOVERNMENT Figure 1. Informal Appeal Rates by Property Value 3.78" 4 3.47 3.17 3 2.50 2 41 0 a 2 1.08 1.25 1.15 1.00 1.26 1 0 198,300 198,301- 232,701-- 242,601- 267,601- 332,001- 365,201- 420,101- 447,601- 498,901- 232,700 242,600 267,600 332,000 365,200 420,100 447,600 498,900 694,600 Median Neighborhood Values ($) Asterisks denote values that include appeals from the Northside tracts.Appraisal appeals from those tracts were unusually high in 2021,inflating the appeal rates for those two bins. 19 SCHOOL . Results jZUNC � GOVERNMENT • No other strong evidence of systemic bias in the appeal process • Property values did not have consistent impact on appeal results • Minority population percentages did not have consistent impact on either — Appeal rates — Appeal results 20 • . . Orange County Results QUNC GOVERNMENT & AL -4 Figure 2. Average Reduction in Initial Appraised Value After Informal Appeal, by Median Property Value 25 23.04* a 20 G O 15 10.74* aj / 10 7.63 9.89 AL 7.92 6.69 5_99 4.77 5.40 5.72 5 0 220,000 220,001- 250,601- 293,801- 295,301- 346,601- 365,201- 426,001- 453,201- 536,101- 250,600 293,800 295,300 346,600 365,200 426,000 453,200 536,100 694,600 Median Neighborhood Values ($) Asterisks denote values that include appeals from the Northside tracts,which inflated the average appeal results for those values. 21 SCHOOL OF Mecklenburg County Results 12UNC GOVERNMENT Figure 2. Informal Appeal Results by Property Value 0 9 8.2 3 8 is 7 6 5.6 a a 5.3 E 4.3 3.9 O 3.3 O 2.7 2.5 2.9 v 3 2.a 2 20.0- 147.0- 181.4- 211.4- 244.8- 286.2- 338.4- 412.0- 522.4— 763.1- 146.9 181.3 211.3 244.7 286.1 338.3 411.9 522.3 763.0 8,562.7 Property Value Range in Thousands of Dollars 22 SCHOOLOF Orange County Results jZUNC GOVERNMENT Figure 3. Informal Appeal Rates by Neighborhood Racial Composition 4 3.53* 3.34" 3 2.58 �2 2.06 V 2 1.53 1.55 � 1.32 1.42N/ 1.03 1.06 1 0 35.4-65.7 66.3-69.7 69.9-73.7 74.7-79.1 79.2-80.7 81.3-81.7 82.4-83.0 83.1-87.0 88.2-89.7 90.4--92.8 White Population % Asterisks denote values that include appeals from the Horthside tracts,which inflated the appeal rates for those values. 23 SCHOOL . Mecklenburg County Results AIUNC GOVERNMENT Figure 4.Appeal Rates by Neighborhood Minority Population 12 11.1 10 8.8 Informal Appeals c 8 7.3 6.8 6.8 6.5 5.8 5.6 6 i4 4.7 a a 4 Q 2.8 2.6 Formal Appeals 2 1.6 1.6 1.+: 1.5 1.7 0 5-14 15-21 22-27 28-37 38-48 49-62 63-73 74-79 80-85 86-97 Minority Population (%) 24 SCHOOL . Orange County GOVERNMENT -JL .00- d Figure 4. Average Reduction in Initial Appraised Value After Informal Appeal, by Neighborhood Racial Composition 25 23.04* 0 20 O 15 11.10 10.74* 11.11 AL 10 5 6.78 .58 5.33 °1 5 Q 4.44 W 4.53 3.61 0 35.4--66.5 68.5 69.0-69.9 70.7-73.7 73.8-78.8 79.2-79.7 80.8 81.4-82.8 83.0-86.0 87.1-92.8 White Population% Asterisks denote values that include appeals from the Northside tracts,which inflated the average appeal results for those values. 25 SCHOOL . Mecklenburg County Results fli UNC GOVERNMENT Figure 5. Informal Appeal Results by Neighborhood Minority Population 8 7.0 �0 7 te 6 5.4 a, � 5.2 a 5 C 5.0 3.7 3.9 4 G3.0 2.9 2.f3 L 3 2. 0 2 u � 1 a IR 0 0 5-12 13-16 17-22 23-28 29-37 38-49 50-62 63-75 76-82 83-97 Block Group Minority Population (%) 26 SCHOOL Next Steps? GOVERNMENT • Increase outreach to taxpayers about the appeal process • Repeat study after next reappraisal to identify trends II U N � SCHOOLOF �r GOVERNMENT