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Revaluation Presentation Main Page
The 2005 Revaluation
Kimberly O. Horton, CAE
Chatham County Tax Administrator
Why Do We Conduct Reappraisals?
To appraise real property at market value.
To re-equalize the tax base.
Personal Property is assessed annually at market value
Real property is assessed every four years
Creates an imbalance that worsens over time
Real estate values change over time, but not uniformly across the county.
Why Do We Conduct Reappraisals?
Reappraisals are required by North Carolina law.
Octennial System - G.S. 105-286(a)
More Frequent Reappraisal allowed at the Discretion of Local Board of
Commissioners
Chatham County Board of Commissioners agreed in 1998 to conduct appraisals
ever 4 years
2001, 2005, 2009, 2013 etc.
Why 4 Year Reappraisals?
Avoid Losing Property Tax Revenues from public utilities
Avoid Large Value Increases.
Equitable Distribution of Tax Burden
The Market Value Standard
G.S. 105-283.
All property,
real and personal,
shall as far as practicable
be appraised or valued
at its true value in money.
True Value In Money is...
The price estimated in terms of money
at which the property would change hands
between a willing and financially able buyer
and a willing seller,
neither being under any compulsion to buy or sell
and both having reasonable knowledge of all the
uses to which the property is adapted
and for which it is capable of being used.
Market Value Is...
The Most Probable Price - not necessarily the highest, lowest, average, or
actual sale price.
Most Probable Price
Comparable properties in a neighborhood are being sold in the $50,000
range and there are no significant differences, it is reasonable to believe
all properties in the neighborhood would be worth $50,000.
How is a Reappraisal Conducted?
Every real estate transaction resulting in a change of ownership is
reviewed.
The sales price and terms of the transaction are verified.
True arms-length transactions are qualified and placed in our sales
file.
Our sales file contains qualified sales from 1/01 through 12/04.
Qualified Sales
A Sale Between Unrelated Parties
Reasonable Exposure in the Market
Not a Forced Sale - Foreclosures
No Advantage Being Taken by the Buyer or Seller
Both Parties Recognize the Present Use and Potential Uses of the Property
Stratification
The county is divided into approximately 500 appraisal neighborhoods
Fearrington Village has 10 neighborhoods.
Reviews are conducted on a neighborhood basis.
Sales analysis is conducted using sales from within the neighborhood.
Three Approaches to Value
Cost Approach
Income Approach
Sales Comparison Approach
Statistics
The overall level of assessment as indicated by sales is 107% in
Fearrington Village.
PRD 1.001
Average COD 3.37
Case Note G.S.105-283 There may be reasonable variations from market
value in appraisals of property for tax purposes if these variations are
uniform.
Statistics
The AVERAGE VALUE of a Fearrington residential property was $213,039 in
2004.
The PROPOSED AVERAGE VALUE of a Fearrington residential property is
$267,876 in 2005.
Statistics
The taxable residential value in Fearrington Village was $248 million in
2004.
The proposed taxable residential value in Fearrington Village is $312
million for 2005.
The is an increase of 25.81%.
Statistics
The taxable commercial, industrial, and other (multi-zoning) value in
Fearrington Village was $12 million in 2004.
The proposed taxable commercial, industrial, and other value in
Fearrington Village is $46 million for 2005
The is an increase of 283.33%.
Statistics
The county taxable real estate portion of the tax base before exemptions
and exclusions was $4.4 billion in 2004.
The county taxable real estate portion of the tax base before exemptions
and exclusions is $5.6 billion (initially) for 2005.
The is an increase of 29.06%.
Uniformity and Equalization
The most important point to remember is that the primary goal of
reappraisal is uniformity. The purpose of a reappraisal is not to increase
revenues or to provide tax breaks, but to fairly, equally and uniformly
appraise the real property at its true value in money.
Uniformity and Equalization
Since ad valorem taxes (property taxes) is based on value, it is important
to have all property valued periodically on a uniform basis, using a modern
system of valuation. Since market value appraisals become the foundation for
assessments, equalized values create equalized and uniform taxes.
Equalization also creates a better tax climate in the community since each
taxpayer is paying only his or her fair share.
Notification & Appeals Process
2-14-05 Revaluation Notice Mailed
3-01-05 Begin Informal Hearings
3-31-05 Informal Results Mailed
4-25-05 Begin BOER Hearings
5-25-05 BOER Results Mailed
6-25-05 PTC Appeals Due
Notification & Appeals Process
First notice 15 day appeal deadline
Easiest for taxpayer.
Not the only appeal open to taxpayer.
Appeals are accepted until the adjournment of the BOER
Legal advertisement of the expected adjournment date
Informal Appeals Process
The majority of property owners will likely accept their new value without
contacting the Assessors Office.
Currently 2490 appeals on file
279 appeals from Fearrington Village.
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