Revaluation is a systematic, in-depth process of reappraising all the real property in the county to the current market value. It is mandated by the North Carolina General Statutes governing property tax assessments; and since values don’t change between revaluations it is necessary in order to maintain equitable and uniform property values among property owners throughout the county. Over time neighborhoods change and these changes occur at different rates. For instance one neighborhood may increase over four years by thirty percent while another only by five percent. Not to revalue would be placing an undue burden on the property, which is appreciating more slowly. The periodic reviews that occur through revaluation thus strengthen equality between properties.
A countywide revaluation is an enormous and complex task. The “in house” appraisal team of the Assessor's Office is not only familiar with the county, but has also made every effort to consider all the many factors involved in determining property values through the completion of the revaluation process. Field inspections have been conducted, sales files have been developed and analyzed, and market trends continually monitored. Contacts have been made with many real estate professionals for the purpose of staying informed and knowledgeable of factors that have an impact on property values. A concentrated and conscientious effort has been made to ensure that property values have been accurately and equitably appraised throughout the county.
Shortly after the 9/11 terrorist attacks, the Orange County real estate market was somewhat flat. Then around mid 2004 the market began to pick up and this gradual increase in values has continued through much of the four years between 2005 and today. Consequently, the 2009 revaluation recognizes an increase for most real property within the county. Within the Chapel Hill Carrboro City School District the average tax value of a home and lot is now $342,000 up from $265,000 in 2005. The areas that have seen the most dramatic increases above average have likely seen market appreciation above the average or have been under valued in the past. Also, of interest are the numbers of homes that have been renovated and how renovation has greatly impacted value of these properties. We are also beginning to see more and more teardowns where homes are bought then torn down for the land. This is occurring even in areas where the homes have significant value such as The Oaks and other well-established neighborhoods.
Unlike some areas within the nation, which have been widely reported on through the national media, Chapel Hill has overall maintained and has thus far weathered the housing slump. Unfortunately, there lingers a perception that all real estate has significantly declined. While most of the local markets are presently sound there is always the chance that this could negatively change. With this in mind, the Assessor’s office will be watching the sales activities and will be reporting any downturn to the Board of County Commissioners. In such an event, the Commissioners will have the option of scheduling a revaluation prior to 2013. The revaluation team is also presently reviewing areas and neighborhoods looking for those that need to be adjusted now.
Of course, no matter how thorough a revaluation effort may be there are always facts not known by the revaluation team that can greatly impact individual properties and areas. This is why, way back in 1993, the Assessor’s Office developed the “Input and Review Form” which today is available on the Assessor’s web page or can be mailed to any who do not have access to the internet. www.co.orange.nc.us/assessor This form was developed to provide property owners with a tool that would walk them through the process and help them to understand the type of information that would be most beneficial and to provide a means for them to express their concerns. The “Input and Review Form” has proven to be an invaluable tool. Where it used to be that an owner’s defense tended to be “The tax value is too high!”, now the revaluation team is gaining some very valuable input during the informal appeal process. The form should be completed, and returned prior to the end of March, with all evidence documented (when possible) and attached. The Assessor urges all citizens who have information that could affect the value of their property to bring it to the attention of the Assessor’s office. The Assessor and staff are available to answer questions, to discuss any concerns, and to perform home visits when requested.
The 2009 valuation estimates were first made available on the website on December 10, 2008. This approach proved to be very popular with thousands of hits particularly in December. In addition, 2009 is also the first time we have been able to allow web users to look up their value as well as all the values on their or any street through an address search option on the GIS website. This option can presently be found through the Assessor’s web page, listed earlier. With this new tool owners have been able to determine equality between their valuation and that of other homes in their neighborhood.
Since the valuations first became public in December, the Assessor’s office has been taking calls and appeals. To date we estimate that we have received approximately eight hundred and fifty appeals. This number is well within the number experienced in past revaluations. We expect to receive approximately twelve hundred to thirteen hundred appeals. Overall the citizens have been very reasonable and very willing to work with us through the process. This has been of great benefit to the quality of the revaluation effort and has been greatly appreciated by the appraisal staff. Our primary focus is to be as responsive as we can to our citizens.
An additional aspect of this revaluation is our outreach to homeowner associations and to the elderly. As we have been invited, we have been speaking to different groups answering revaluation questions and getting the word out concerning the different programs for the elderly, the disabled, and the disabled veteran exemptions. We have meet with representatives of community outreach groups and representatives from multiple county departments educating them on the exemption programs and engaging them in getting the word out. We are also available to do the same on a city department basis. Please see the information below on the two elderly and disabled exemption programs.
In past years the North Carolina General Assembly has provided only one program for providing reductions in taxes for the elderly and the disabled. Beginning January of 2009 there will be two programs. You must apply for the opportunity to participate in either of these programs by June 1. Please call 919-245-2100 to request an application. You need only apply for one of these forms of tax relief. These programs are detailed below:
General Statute 105-277.1 Property Tax Homestead Exclusion For Elderly Or Disabled Persons:
North Carolina excludes from property taxes a portion of the appraised value of a permanent residence owned and occupied by North Carolina residents who are at least 65 years of age or are totally and permanently disabled, and whose income does not exceed $25,600. The amount of the appraised value of the residence that may be excluded from taxation is the greater of twenty-five thousand dollars ($25,000) or fifty percent (50%) of the appraised value of the residence. Income means all moneys received from every source other than gifts or inheritances received from a spouse, lineal ancestor, or lineal descendant.
If you received this exclusion last year, you do not need to apply again unless you have changed your permanent residence. If you received the exclusion last year but the property no longer qualifies for any reason, please notify the assessor. Failure to notify the assessor that the property no longer qualifies for the exclusion may cause the property to be subject to discovery with penalties and interest pursuant to G.S. 105-312.
General Statute 105-277.1B Property Tax Homestead Circuit Breaker Deferment:
North Carolina defers a portion of the property taxes on the appraised value of a permanent residence owned and occupied by a North Carolina resident who has owned and occupied the property at least five years, is at least 65 years of age or is totally and permanently disabled, and whose income does not exceed $25,600. If the owner’s income is $25,600 or less, then the portion of property taxes imposed on the residence that exceeds 4% of the owner’s income may be deferred. If the owner’s income is more than $25,600 but less than or equal to $38,400, then the portion of the property taxes on the residence that exceeds 5% of the owner’s income may be deferred.
The deferred taxes become a lien on the residence and the most recent three years of deferred taxes preceding a disqualifying event become due with interest upon one of the following disqualifying events: 1) the owner transfers the residence; 2) the owner dies; or 3) the owner ceases to use the property as a permanent residence. Multiple owners of a permanent residence must all qualify for the circuit breaker before a deferment of taxes will be allowed.