HomeMy WebLinkAboutAgenda - 10-01-2024; 5-b - Public Hearing on the 2025 Reappraisal Proposed Schedules of Rules, Standards and Values 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 1, 2024
Action Agenda
Item No. 5-b
SUBJECT: Public Hearing on the 2025 Reappraisal Proposed Schedules of Rules,
Standards and Values
DEPARTMENT: Tax Administration
ATTACHMENT(S): INFORMATION CONTACT:
Presentation — 2025 Reappraisal and Nancy Freeman, Tax Administrator,
Schedules of Values 919-245-2735
UNDER SEPARATE COVER:
2025 Reappraisal Schedules of Values
ON FILE IN TAX ADMINISTRATION
OFFICE AND CLERK'S OFFICE AND
AVAILABLE ELECTRONICALLYAT:
https://www.orangecountync.gov/878/R
evaluation
PURPOSE: To conduct a scheduled public hearing on the 2025 Reappraisal Proposed
Schedules of Rules, Standards and Values.
BACKGROUND: As required by North Carolina General Statutes (NCGS) 105-317, the proposed
Schedules of Values (SOV) to be used in conducting the 2025 reappraisal were submitted to the
Board of County Commissioners at the September 5, 2024 Business meeting. At that time, a
public hearing was set for October 1, 2024. Notice was subsequently advertised in the News and
Observer on September 6, 2024, and the News of Orange on September 11, 2024. The proposed
Schedules have been available for public inspection in the Orange County Tax Office, Orange
County Clerk to the Board's Office, the Orange County Public Library in Hillsborough, and on the
Orange County Tax Office website (available at
https://www.orangecountync.gov/878/Revaluation) since September 5, 2024.
This public hearing is the second step in a three-step process to adopt the Schedules that will be
used in conducting the 2025 reappraisal. The Board will be asked to adopt the Schedules at its
October 15, 2024 Business meeting. Following adoption, the Schedules will be appealable to the
State Property Tax Commission for thirty (30) days.
The timeline for the 2025 Reappraisal Schedule of Values adoption process is as follows:
a. September 5, 2024: Submission to Orange County Board of Commissioners
b. September 6, 2024: Advertise in local newspapers
c. October 1, 2024: Public Hearing on SOV
d. October 15, 2024: Adoption of SOV
e. October 16, 2024: Publish 1st notice of adoption
2
f. October 23, 2024: Publish 2nd notice of adoption
g. October 30, 2024: Publish 3rd notice of adoption
h. November 6, 2024: Publish 4th notice of adoption
i. November 15, 2024: Last day for taxpayer to appeal the SOV
A reappraisal, or revaluation, is the process of updating real property tax values to reflect fair
market value, the most probable price a property would bring at sale in an open and competitive
market. It includes all residential and commercial land and structures. The effective date of the
upcoming reappraisal is January 1, 2025. The primary goal is to equalize the tax base, so that the
property tax burden is spread equitably across all taxpayers.
Revaluations are conducted by applying mass appraisal techniques. Mass appraisal is the
process of appraising a large number of properties as of a given effective date, using data
standardized methods, and statistical analysis to arrive at uniform and equitable values.
The 2025 revaluation work is 75-80% complete. A substantial consideration for the upcoming
revaluation is the fact that the residential market has increased at record levels since 2021
throughout North Carolina. The current estimate of overall real property value increase is 43%,
with jurisdictions ranging from 40 to 52%. In comparison, the average real property value increase
countywide for the 2021 revaluation was just over 20%.
It is worth noting that the commercial market has grown substantially in Orange County as well.
There are roughly 2,160 commercial properties, and the valuations are approximately 80%
complete. The commercial consultant retained by the Country anticipates a roughly $1 billion
increase overall in commercial values. This represents an average increase of approximately
23%.
The Tax Office will provide a final revaluation presentation to the Board of Commissioners in
January 2025. Revaluation Notices will be mailed out mid-March 2025, and the planned deadline
for informal appeals is April 20, 2025. The Board of Equalization and Review (BOER)will convene
on May 5, 2025 to receive and hear formal appeals, with June 30, 2025 as the planned deadline
for filing a formal appeal. The BOER will continue to meet through the fall of 2025 to consider all
timely filed formal appeals.
FINANCIAL IMPACT: There is no financial impact associated with conducting the public hearing.
ALIGNMENT WITH STRATEGIC PLAN: There are no Orange County Strategic Plan Goals
applicable to this item.
RECOMMENDATION(S): The Manager recommends that the Board:
1) receive the PowerPoint presentation;
2) conduct the public hearing to receive comments from the public;
3) close the public hearing; and
4) provide any comments or direction in preparation for staff to present the SOV for approval
at the Board's October 15, 2024 Business meeting.
202 5 Rea pp raisal
Schedule of Rules,
Standards &
Values
October i, zoay
Nancy Freeman, Tax Administrator
An appraisal "toolbox" . Shows appraisal system contents,
i.e. calculation tables, codes, etc.
Explains methodology and procedures for appraisal at
market value and present use value where appropriate
What is
Guide to ensure that same standards are applied to all
the property in the County to keep values equitable
Schedules
Establishes the base rates and ranges for all types of
property which will be in effect until the next Revaluation
of Values
(SOV)? �
Includes Links to applicable case law
Provides Uniform Standards of Professional Appraisal
Practice (USPAP)
Does not provide values for specific properties
North Carolina Statutes include provisions for review, public hearing and
approval of SOV.
Tax Assessor must submit SOV to the Board of County Commissioners
(BOCC) at least 21 days before being adopted by BOCC
Schedules
A public hearing must be scheduled at least 7 days before adoption.
of Values
SOV must be adopted by the BOCC before January i of the year applied
(January 1, 2025). Upon adoption, the notice of adoption must be
advertised for 4 weeks.
The SOV can be appealed to the North Carolina Property Tax Commission
for 3o days.
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September F, 2o24: Submission of Schedules of
Values to Board of County Commissioners
September 6, 2024: Advertising notice published
in News of Orange and News & Observer
2025
October 1, 2024: Public hearing
Schedule of October 1F, 2024: Adoption of Schedules
Values October 16 202 : 1st advertising notice
4 g
Adoption October 23rd, 2024: 2nd advertising notice
Process October _both, 2024: 3rd advertising notice
November 6th, 2024: 4 t hadvertising notice
November 1r,, 2024: Last day to appeal the SOV
to the NC Property Tax Commission
7
Residential Revaluation Example
VA
Subject property:
Located in The Meadows in Mebane. The
Meadows is a Market Area or
Neighborhood for the 2025 Revaluation.
log Sold for $2g6,000 in June zozo
2021 was assessed at $304,000
.1
Its sales ratio at zoai Revaluation equaled
Sold for $395,000 in March of 2024
The current sales ratio is approximately
77%
8
Residential Revaluation Example
(continued )
2025 Land Sales analysis
Transfers of vacant lots average sale price of $85,000
A lot value of $85,000 was established for this neighborhood
2025 Quality Grade analysis
Homes in The Meadows show inconsistences in grade from B-2.5
to B+io using the zo2i Schedule of Values
For zoz5 grade B-05 was selected as the quality grade to be
applied to all homes, with application of design factors as
necessary to account for homes with significantly more or less
features
9
Residential Revaluation Example
(continued )
Value of the Subject property
Land value was set to $85,000
Building grade was changed from B+io to B-05
No other changes were made to the residence
A storage building was added to the record
The resulting new value is $394,400
The new sales ratio is 99.8% based on its 2oz4 sale
10
Purpose is to bring Orange In 2003 state law updated
County manufactured homes to better define
into compliance with the manufactured home
current legal requirements. classification as real or
Manufactured personal property. NCGS
Home io5-273(13)•
Classification
Project
Current data indicates that 84 The property classification
will move from Personal to affects the appraisal process.,
Real and 204 will move from listing requirements, and
Real to Personal. collection remedies.
11
Manufactured Home Classification
Figure 1. Classification of manufactured homes as real or personal property (G.S. 105-173(13))
Residential YES Hitch, YES Permanent YES On land YES
< <structure? wheels,and axles foundation? owned by owner of
removed. mobile home.
NO NO NO NO
i1 N� 10+
Personal Property year lease with disposition terms.?
YES
Real Property
12
Northside Neighborhood
TAX OFFICE STAFF DATA SHARING WORK WITH STAFF HAS
HAS MET WITH BETWEEN JACKSON CENTER WORKED TO
JACKSON CENTER NORTH TO PROVIDE REFINE
2TIMES5INCE CAROLINA COMMUNITY NORTHSIDE
BEGINNING HOUSING OUTREACH: PROPERTY DATA
WORK ON THE COALITION & TAX REVALUATION, THROUGH
REVALUATION. OFFICE. TAX ASSISTANCE, DELINEATION.
PAYMENT
OPTIONS.
13
Customer Service &
Community Outreach
Interactive websites to assist in March 2023: 44,000 Data Validation
reviewing property values: Forms mailed
Property Record Card Revaluation Insert in 2024 Bills
• Orange Public Comper Community engagement with
Community Relations & community
General Contact Email: 4M leaders:
taX or"'"'',n--o ntynCf4^11 ' Revaluation
• Property Tax Relief
Dedicated Revaluation Email: Payment Options
rev 1 01 CLVVI I LY I ��.. ,,. Payment Coupon Insert in 2024 Tax
Bills
Assistance by phone: 919-245' Nextdoor & Facebook to share
2100, option 2 _ information
Revaluation Website & Google & Bing online business
Revaluation video: profiles updated, can be used by
https://www.orangecouin �fic.ar people whose native language is not
r En lash.
v/878/Revaluation g