Revaluation Q & A’s

Revaluation Q&A’s

What is Revaluation?

Revaluation is an in-depth process of reappraising all the real property (value of each parcel of real estate including land, buildings and outbuildings that are located within the county), in the county at its current market value.  Revaluation is not only mandated by the North Carolina General Statutes, but it is necessary to maintain equitable and uniform property values among property owners throughout the county.

Why do we do this?

 North Carolina General Statute 105-286requires revaluations at least once every eight years; the last revaluation in Vance County became effective January 1, 2008.

When will the Revaluation become effective?

The Revaluation will become effective January 1, 2016.

Who will conduct the Revaluation?

Vance County contracted with Pearson’s Appraisal Service, Inc.  They are an appraisal company that is familiar and experienced in the local real estate market.  They are certified & licensed appraisers.

What is market value?

  • It is the most probable or most likely price that the property would sell for.  It is not the highest, lowest, or average price.Expressed in terms of money
  • Requires a willing buyer and a willing seller with neither under any pressure to buy or sell.
  • Implies that the buyer and the seller are fully informed of all the purposes to which the property is best adapted and is capable of being used.
  • Recognizes the property’s current use as well as its potential use

What is the purpose of a Revaluation?

The purpose of the Revaluation is to have each property carry its appropriate share of expenses to operate local government. Revaluations ensure that property owners bear a share of the total tax burden that is proportionate to the value of the taxable property they own.

Why appraise property?

An appraisal provides a basis for determining a property owner’s share of the taxes that support schools, roads, parks, public health programs, libraries, and law enforcement and fire protection. The amount of taxes you pay depends on both your property value and the tax rates set each year by elected county and city/town officials.

What’s the benefit?

This readjustment in values makes the County’s tax system more fair and equitable, because the values are based on what the property is worth on the open market. This ensures that all property owners are paying their fair share of taxes.

How much will the Revaluation affect my tax bill?

The Revaluation determines only one of the two components of your tax bill, the assessed value.  The other component, the tax rate, is set by the County Commissioners and City Council.

The 2016 tax rates will not be set until June of 2016.  Our elected officials will determine how much revenue will be needed to operate during the fiscal period that runs from July 1, 2016-June 30, 2017.

       Tax Bill=Assessed Value x Tax Rate/100

       Example:  $800.00=100,000 X .80 /100

How Does Market Value Affect Property Taxes?

The total market value of all taxable property in the county is called the tax base.  During the budget process, the property tax rate is set by the Board of County Commissioners to fund services such as schools, public safety, and human service programs.  The property tax rate is applied to the tax base to produce the tax revenue amount.

How is the Value of Real Property Determined?

  • We collect & analyze sales data from real estate transactions in the county
  • Appraisers must recognize value set by buyers and sellers within neighborhoods
  • We determine certain basic characteristics on every property such as building’s dimensions, total square footage, type & quality of construction, type of heating & cooling, plumbing, age, condition, desirability, usefulness, etc.
  • We use the Valuation Methods of the Appraisal Industry

1. Market Approach:  Compares property to recent sales of similar properties

2. Cost Approach:  Determine current cost of replacing the property

3. Income Approach:  Consider how much income the property could produce (commonly used for commercial properties)

How will my property value change?

Properties will not change uniformly throughout the county.  Depending on market conditions and recent sales in our neighborhood, your assessed value may increase, decrease, or remain relatively the same.

What type of property is revalued?

  • The Revaluation is done for all residential, commercial and industrial land and structures in Vance County.
  • The Revaluation does not include personal property such as motor vehicles and boats whose values are adjusted on an annual basis.

How can I determine if my new value is correct?

You can review recent arm’s length sales in your neighborhood of properties similar to yours.

How will the taxpayer be notified?

The Tax Administrator will notify taxpayers of their new property values. Notices will be mailed in February 2016. If a taxpayer has a concern with the property value, the taxpayer will have an opportunity to request an informal hearing with the Vance County Tax Office and the contracted firm prior to the Board of Equalization and Review hearings.

What if I disagree with the Revaluation value of my property?

Of course, no matter how thorough a revaluation may be, there are still some instances when a property owner has information that may influence the value of their property.  For that reason, we will provide an Informal Appeal Process to assist property owners in presenting their concerns to Pearson’s Appraisal Service, Inc.

Valid reasons to appeal the Market Value

  • The market value substantially exceeds the actual market value of the property.
  • The market value is inconsistent with the market value of similar properties within your neighborhood.

Invalid reasons to appeal the Market Value

  • The market value increased too much compared to the 2008 market value.
  •  The market value is more that the construction cost.
  • The market value is more than the insurance value.
  • The market value is just too high.
  • The owner does not have financial ability to pay the taxes.

How does the Appeal Process work?

  • If you agree with the Market Value stated in the Notice of Assessed Value, no further action is required.
  • If you wish to request an informal appeal, please choose from one of the three methods below.

1. Mail the completed Informal Appeal Form and supporting documentation to: Vance County Tax Office, Attention Revaluation, 122 Young St., Suite E, Henderson NC 27536; or

2. Fax the completed Informal Appeal Form and supporting documentation to:  252-738-2059; or

3. Scan and attach in an email with the completed Informal Appeal Form and supporting documentation to:  taxoffice@vancecounty.org

All appeals will be thoroughly reviewed and supporting evidence will be given proper consideration.  In a revaluation year, the Informal Appeal Process may take several months to complete.  Your right to appeal to the Board of Equalization and Review is protected during the time the Tax Office is processing your Informal Appeal.

A REVIEW OF YOUR ASSESSMENT MAY RESULT IN YOUR VALUE BEING:  UNCHANGED, REDUCED OR INCREASED

Events Calendar