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Home My WebLink About03022026 Meeting Summary - Tax Assessment Work Group DRAFT Orange County Tax Assessment Work Group Meeting Summary Monday, March 2, 2026 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 Nancy Freeman—Tax Administration Director Orange County Kirk Vaughn—Budget Director Orange County Wil Glen—Community Relations Director Orange County Paul Slack—Chief Civil Rights Officer Orange County Neal Bench—Community Representative—District 1 Chapel Hill Kate Millard—Community Representative—District 2 Little River Hudson Vaughan- Representative from NC Housing Coalition Chapel Hill Catlin Saunders-Community Representative- District 1 Chapel Hill Shereese Alston- Representative from Property Tax Justice Chapel Hill Delores Bailey—Non-Profit Housing Provider Chapel Hill John Furgeson -Community Representative—District 2 Staff Present: Denise Clark from the Orange County Budget Office Martha Bordogna, Orange County Staff Attorney Welcome and Roll Call Commissioner and Work Group Co-Chair Marilyn Carter called the meeting to order at 1:04 PM and welcomed everyone. Roll call was conducted at the start of the meeting. Approval of Meeting Summary The meeting summary from February 9, 2026,was approved unanimously. Opening Remarks Commissioner and Work Group Co-Chair Phyllis Portie-Ascott provided an overview of the meeting, and Commissioner Carter provided a quick recap from the previous meeting. Commissioner and Work Group Co-Chair Amy Fowler welcomed and introduced the presenters. 1 DRAFT Presentation: Commercial Assessment Review Presenter: Paul Snow, MAI and President of Analytical Consultants Overview of Presentation 1. Assessment Ratio as Baseline 2. Commercial# Residential 3. Market Increases vs Assessment Increases 4. Appeals Process Outcomes 5. Questions Conclusion of Presentation 1. Baseline ASR*figures indicated need for significant correction. 2. This correction was provided in part by an aggressive but accurate commercial assessment. 3. Total appeal reductions were lower than predicted. 4. 2025 ASR recorded by NC Department of Revenue is within standards. *Assessment Ratio (ASR) =Assessed Value- Market Sales Price Summary of Topics Covered and Discussed: Definition and Classification of Multifamily Clarified that 5+ units are considered multifamily; 2-4-bedroom houses are typically classified as single-family, even if multiple people live there. Neighborhood Impacts and Concern Concern was raised that some homes are being operated like apartments (multiple separate households)while appearing as single/multifamily houses, potentially driving up prices for private homeowners. Identification, Reporting, and Classification of Rental Use Commissioner Fowler noted efforts to subdivide neighborhoods and emphasized the importance of notifying the Tax Office when properties appear to be used differently than their current classification. Steven "Chad" Phillips from the Tax Office explained that their approach to identifying rental-type use is applied countywide whenever the office is made aware of such properties; however, properties not reported or identified-cannot be classified appropriately until they come to the office's attention. Conflict of Interest Discussion 2 DRAFT A potential conflict of interest was discussed regarding Analytical Consultants being the only Orange County based appraisal firm.This raised questions about how to ensure transparency and fairness when local firms are involved in county appraisal work. In-House vs. Commercial Appraisal Discussion Speaker: Clinton Swaringen,Tax Ad min istrator, Stan lyCounty Summary of Key Points: • Stanly County Overview County has 64,000 residents and 42,000 parcels, mostly single-family homes with a small commercial base and few apartments. • Revaluation History and Approach Past contracted revaluations(1993-2001)were considered unsuccessful, leading the county to move all revaluation work inhouse starting in 2005 with -long-term-staff. • Importance of In-House Appraisals Face-to-face appea-Is and familiar staff help build public trust, improve communication, and reduce conflict. • Commercial Appraisal and Appeals Stanly County had 142 commercial appeals in 2021, primarily from hotels and shopping centers, and early outreach to commercial owners reduced appeals to 62 for the 2025 revaluation. • Market Change and 2025 Revaluation Results Residential values increased an average of 42%, commercial values increased 22%,with significant variation across different areas of the county. • Section 42 Housing State mandated valuation methods keep Section 42 housing values lower and result in few appeals. • Staffing and Expertise The county relies on a DOR-certified inhouse commercial appraiser, which is more cost effective than hiring MAI level outside expertise. Additional Input from Durham County Keyar J. Doyle,Tax Administrator for Durham County, advised that the county prefers conducting revaluations in-house whenever resources allow because internal staff offer stronger commitment, continuity, and accountability.While external experts can be valuable when needed, inhouse is the ideal approach when staffing and workload make it feasible-.This applies to both commercial and residential revaluations. 3 DRAFT Revaluation Increase Comparisons Across Counties Nancy Freeman provided a comparison of revaluation increase percentages reported by other counties. Lee County saw a 60%residential increase and 40%commercial increase; Guilford County reported a 45%residential increase and is still finalizing commercial numbers; and Stanly County reported 42% residential and 22%commercial increases. Questions and Next Steps Next Meetings: Monday, March 9,2026, at 1:00 PM (approx. 1.5 hours) • Review Request for Proposals Adjournment With no further items to discuss,the Work Group adjourned at 2:28 PM . 4