1. WHAT IS A REVALUATION?
Revaluation is a process by which all property tax assessments within a taxing jurisdiction (Lee County) are reassessed to their market value as of a specific revaluation date, January 01, 2013. It also is sometimes called a reappraisal or mass appraisal. The tax office, in this process, reassesses all real property (land, buildings and other improvements to the land) as of the revaluation date. Arms-length market sales are used to estimate new tax assessments during this process as well as other market data such as income/expense information and market building cost information. This updated tax assessment is effective, generally, until the next countywide revaluation. Lee County’s next revaluation date is January 01, 2013, and tax assessments should reflect market value as of that date once the revaluation is completed.
2. WHY HAVE A REVALUATION?
The State of North Carolina requires counties to conduct a revaluation at least once every eight years (NCGS 105 – 286a). Its purpose is to redistribute the tax burden based on current market data. As time elapses between revaluations, properties may increase or decrease in market value at different rates. The State of North Carolina charges counties with assessing property based on current market data as of each revaluation date.
3. WILL ALL PROPERTY VALUES CHANGE?
Most likely, yes. However, not all property values will change at the same percentage. Market values may have increased or decreased more for some neighborhoods and property types than for others. One purpose of a revaluation is to ensure assessed values reflect changes that have occurred in the marketplace since the last countywide revaluation.
4. WHY APPRAISE AT MARKET VALUE?
North Carolina General Statute 105 – 283 requires counties to assess all property, both real and personal property, at its true value in money. True value shall be interpreted as meaning market value. NCGS 105 – 284 establishes a uniform assessment standard. This standard in effect penalizes counties if they are not assessing property at market value as of the date of last revaluation.
5. WHO WILL DO THE WORK?
The Office of the Tax Administrator is conducting this revaluation “in-house”. This means our own personnel in the tax office will be evaluating properties along with current market data and establishing new tax assessments. By having the revaluation conducted with current personnel, we feel this will yield a high-quality revaluation and better tax assessments for your tax dollars.
6. WHEN DOES THE REVALUATION TAKE EFFECT?
Typical countywide revaluations take between 18 – 24 months to complete. Staff of the Lee County Tax Office has been reviewing market sales, compiling studies and maintaining a list of current tax base inventory since the last revaluation, January 01, 2007. Tax office appraisers began reviewing all properties for the 2013 revaluation in mid-2011. Our current goal is to complete the process by the fourth quarter of 2012. The resulting values will be effective January 01, 2013. Real property tax bills mailed in July of 2013 will reflect the new revaluation tax assessment.
7. WHEN CAN I FIND OUT MY NEW TAX ASSESSMENT?
New value notices should be mailed to all taxpayers who own real property in Lee County between January, 2013 and March, 2013.
8. WILL MY TAXES CHANGE AS A RESULT OF REVALUATION?
Although the value of your property does affect your share of taxes, the actual amount you pay is determined by budgetary needs of the jurisdictions in which your property is located (county, city, fire districts, etc.). Governing boards of these taxing units decide what services the jurisdiction will provide in the coming year and how much money the jurisdiction will need to provide these services. A tax rate is then adopted to generate the necessary tax dollars.
9. HOW ARE MARKET VALUES DETERMINED?
Various tools are used to extract data from the market. Sales files, sales questionnaires, multiple listing service, revenue stamps, cost books and ratio studies are a few examples. The best source for establishing residential market values is arms-length sales of reasonably comparable properties. Such properties are similar in location, age, style, condition and other features that may have an effect on market value.
10. WHAT IF I DISAGREE WITH MY NEW TAX ASSESSMENT?
Instructions for appeal will be included with your new value notice. The first appeal level is an informal hearing with a Lee County Tax Office appraiser. Lee County will make personnel available to hold informal hearings with the property owner. During this informal session, the property record card is reviewed and you may request an actual site visit to your property. North Carolina General Statutes put the burden of proof on the property owner to show that a tax assessment is inaccurate. Keep in mind that the informal review will be to ensure your property is assessed at 100% of its fair market value as of the revaluation date, January 01, 2013. Therefore, an informal appeal could result in an increase, decrease or no change in assessment. A change in assessment will be considered only if the owner can demonstrate that the assessed value is more or less than market value as of January 01, 2013, or that it is inconsistent with assessments of similar properties. Assessments cannot be appealed based on (1) its percent of increase/decrease or (2) ability to pay the tax. The tax office will send results of informal appeals via mail. The second level of appeal is to the Lee County Board of Equalization and Review. North Carolina then has a State Property Tax Commission that hears advanced appeals.
Resource Acknowledgements:
Pitt County Tax Assessor’s Office
The Assessment Journal
Onslow County Tax Office
NC Department of Revenue
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