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Home My WebLink AboutMeeting Summary - Tax Assessment Workgroup - 120525 APPROVED Orange County Tax Assessment Work Group Meeting Summary Friday, December 5, 2025 Microsoft Teams Members Present: Commissioner Amy Fowler-Co-Chair, Board of Commissioners Commissioner Marilyn Carter-Co-Chair, Board of Commissioners Commissioner Phyliss Portie-Ascott-Co-Chair, Board of Commissioners Travis Myren-Orange County Manager Kirk Vaughn-Budget Director Orange County Nancy Freeman-Tax Administrator Orange County Wil Glen-Community Relations Director Orange County Neal Bench-Community Representative-District 1 Chapel Hill(virtual) Kate Millard-Community Representative-District 2 Little River Hudson Vaughn - Representative from NC Housing Coalition Chapel Hill Catlin Saunders-Community Representative- District 1 Chapel Hill Shereese Alston-Representative from Property Tax Justice Chapel Hill Staff Present: Denise Clark from the Orange County Budget Office Marth Bordogna from Orange County Staff Attorney • Welcome Commissioner and Work Group Co-Chair Amy Fowler called the meeting to order at 1:01 PM and welcomed everyone. Introductions of members were conducted at the start of the meeting. Hudson Vaughn, John Hudson and Shereese Alston arrived shortly afterward. • Approval of Meeting Summary The meeting summary from December 2, 2025, was approved unanimously. 1 APPROVED • Questions from the Work Group Commissioner and Work Group Co-Chair Phyliss Portie-Ascott opened the meeting to questions or observations related to previous meeting presentations and facilitated the discussion. Questions submitted prior to the meeting from community members, Neal Bench, Catlin Saunders and Hudson Vaughn were discussed first. Followed by other community members Hudson Vaughn, Cathy M, John Ferguson and Sheree Alston. Question/Discussion Request to provide the range of property value changes by property type (commercial, residential), including increases and decreases, to understand variations and their impact on property tax inconsistencies. Nancy Freeman will provide this information to the group. Impact of Vacancy Rates on Property Valuations: Orange County uses a contracted commercial appraiser to assess properties, with values based on market demand. Low vacancy typically drives higher rents and income, leading to higher valuations (assuming expense ratios and capitalization rates remain constant). Conversely, overly high pricing can increase vacancy, reducing income and lowering property values. Question: Is total property elevation per square foot considered when assessing housing values? Freeman confirmed it is one factor used in property valuation. Kirk Vaughn emphasized the importance of analyzing valuation changes over time—not just by property type, but by comparing assessed values to actual sale prices. Property Tax Appeal Process Summary Neal Bench and Nancy Freeman explained the two-step appeal process for property valuations and the difference between informal and formal appeals. There is no cost, and neither legal counsel nor an appraisal is required for either level. Further appeal to the NC Property Tax Commission is available if needed. County Manager Travis Myren confirmed the proposed timeline in the RFP is 2026 (see page 8 of the RFP). Property Appraisal Method In response to a question about visual appraisal methods, Nancy Freeman explained that Orange County uses, drive-by field reviews, on-site measurements during construction, 2 APPROVED interior inspections upon request, especially during appeal and aerial imagery provided by the state every four years, accessible via the GIS website. A question was raised about whether property owners can access the data used by the Tax Office to determine property values, especially when preparing for an appeal. Freeman responded that property owners can access valuation data via property record cards and online tools showing details, aerial imagery, and comparable sales. John Ferguson asked whether, during property assessment, the land containing a house is separated from surrounding acreage or if it is all valued together. Freeman clarified that each parcel is assessed individually based on how it's deeded and recorded with the Register of Deeds. Multiple parcels are not combined for valuation unless legally recorded as a single parcel. Ownership alone does not determine how parcels are grouped for assessment. A question was raised about whether the County has analyzed regressivity in property appeals, specifically if lower-priced properties are over-appraised and less likely to be appealed, as national research suggests. Freeman responded that the County has not formally studied regressivity but is addressing it through partnerships and outreach to help Lower-income owners with the free appeal process. Appeals rarely raise values, except when unreported improvements are found. • Review and Discussion: Consultant RFP for Reappraisal Analysis Commissioner and Work Group Co-Chair Marilyn Carter Marilyn Carter noted Manager Myren would present the RFP prior to questions regarding the presentation. Manager Myren reviewed the draft, highlighting purpose and background, schedule, criteria, and scope of service. Questions and Responses Q: How will the work of the current consultant (Tanner Group) connect to the new RFP? A: County will share all Tanner Group findings with the new consultant, including neighborhood-level summaries and rationale for adjustments. Tanner's analysis will inform, not duplicate,the next phase. Q: Why doesn't the RFP identify known issues (land valuation inconsistencies, depreciation problems, data quality concerns)? A: The new consultant will verify and build on Tanner Group findings rather than recreate them. Hudson emphasized the need for best practices and actionable improvements beyond prior issues. 3 APPROVED Q: Could the RFP approach uncover additional issues?Will known issues be confirmed through Folsom analysis? A: Yes, the RFP aims to produce actionable recommendations and confirm existing issues. Manger Myren noted this intent is in the current language but offered to clarify wording and share the relevant section. Hudson urged the consultant to go beyond verifying findings—fix known issues and uncover new ones. He noted the RFP should reflect verified neighborhood-level adjustments, not just resident complaints. Neighborhood reviews expected next week; final recommendations mayfollow later. Tanner Group offered suggestions despite not being asked for formal recommendations. Freeman confirmed reviews and summary documentation by next week; full recommendations may take additional time. Manager Myren affirmed consultant findings could lead to broader process changes in the Tax Office if issues are identified. Recommendations will go to the work group for review, then to the Board of Commissioners. Manager Myren retains discretion to adjust implementation based on practicality. Martha Bordogna stressed that appeals are governed by NC statute; any consultant recommendations must comply with state law. Proposed clarifying this point in the RFP wording. Catlin Saunders emphasized balancing technical expertise with public communication and fairness. Manager Myren confirmed RFP will be widely advertised and welcomed suggestions for outreach. Shereese Alston suggested consultants should access Hudson's and Tanner's research. Carter agreed and noted not all work group members have seen Hudson's findings; proposed considering a future agenda item for broader sharing. Saunders highlighted the need for consultants with rural expertise to address unique challenges. Commissioner Carter acknowledged the importance of sharing Hudson's and Tanner's research with both the consultant and the work group for context. • Discussions of Next steps 4 APPROVED Suggestions included meeting on the 3rd of each month and moving from in-person to virtual for greater participation. RFP is due January 23, 2025. Next meeting will be Monday, January 12, 2026, at 1 PM via Microsoft Teams Report from Hudson Vaughn and Martha Bordogna for next meeting. Commissioner Carter acknowledged the progress made during the meeting and extended appreciation to Commissioner Portie-Ascott and Carter for their leadership, Manager Myren for his work on the RFP, Freeman for addressing questions, and all participants for their thoughtful engagement and contributions. The meeting reflected strong collaboration and a shared commitment to improving processes through meaningful dialogue and informed planning. Adjournment With no further items to discuss, the Work Group adjourned at 3:05 PM 5