| Q. |
What
does the term "revaluation" mean? |
| A. |
Revaluation
means that the local tax officials are updating the value of all real
property by determining the market value of all real property, as
of the effective date of the revaluation, in this case January 1,
2007. Revaluation is required by the laws of the State of North
Carolina. |
| Q. |
What
is meant by market value? |
| A. |
As
defined under North Carolina General Statute 105-283, market value
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 to 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". Simply put,
this means that, when two parties trade property for money, both knowing
what can and cannot be done with the property, and an agreement on
the price is reached and the trade occurs, then market value is established.
Market value is generally determined from sales between unrelated
and unbiased buyers and sellers. |
| Q. |
How is the market value of my property value determined? |
| A. |
Property
values are not created or set by the appraiser or the tax office.
People who buy and sell real estate in the open market establish market
values. The appraisers job is to diligently and carefully research
and analyze those sales in our local market to determine an estimate
of market value for all properties, as we are required to do by law.
Depending
upon the data available and the type of property being appraised,
there are several methods an appraiser may use to determine value:
- Sales Comparison Approach - This method, most commonly used,
compares your property with similar properties that have sold
recently.
- Cost Approach - This method determines how much it would cost
to replace your property with a similar one, less any depreciation.
- Income Approach - This method determines the value of income
producing properties, such as apartments, based upon the amount
of income the property or properties generate.
|
| Q. |
Why
and for what purpose do we conduct revaluations? |
| A. |
North
Carolina law requires each county to complete a property revaluation
at least once every eight (8) years. The primary purpose of a revaluation
is to equalize the tax burden among all classes of property. The 2007
revaluation in Catawba County was performed to ensure assessments
reflect current market value and that taxation is fair and equitable
for each of our citizens.
As
an example of how values, and therefore, the tax burden, can become
skewed over a period of years, let's suppose two properties located
in different areas of the county both had an established estimate
of market value of $100,000 as of January 1, 2003. One property is
located in a desirable neighborhood, and similar properties that have
sold indicate an average annual rate of appreciation of 5%. The other
property, located in a less desirable neighborhood, indicates an annual
rate of appreciation of 2% for sales of similar properties. In only
four (4) years time, the more desirable would be worth $121,600 and
the less desirable worth $108,200, yet both owners are still paying
the same amount of taxes (based upon $100,000 for both), unless a
revaluation is conducted.
From
this example, you can see that periodic revaluations help ensure a
fair distribution of the tax burden among taxpayers.
|
| Q. |
Who
will appraise my property? |
| A. |
The
2007 countywide revaluation was conducted by employees of Catawba
County, not by an outside appraisal company. Our appraisers
are veteran real property appraisers with over 100 years of combined
experience. Each appraiser on our revaluation staff is certified by
the North Carolina Department of Revenue and the North Carolina Association
of Assessing Officers. |
| Q. |
Catawba
County just conducted a revaluation in 2003. Why have another one
so soon? |
| A. |
There
are a number of reasons for this. The primary one, as noted
above, is that more frequent appraisals will recognize the fact that
different properties increase in value at different rates. So, the
more frequent a revaluation is held, the more equitable the tax burden
among property owners, since these properties that appreciate (or
depreciate) at different rates are appraised at their current market
value more often.
Additional
reasons to advance the revaluation cycle are:
- It generally will reduce "sticker shock" for taxpayers. Values
for residential properties are not apt to rise as rapidly in a
four year cycle versus an eight year cycle.
- The level of assessment between personal property and real
property remains more equitable by conducting more frequent revaluations.
Personal property is required by law to be appraised at 100% value
every year; whereas, real property is only at 100% on the year
of revaluation. The more years between revaluations, the more
distorted the values on record become, therefore creating an inequity
of the tax burden among taxpayers.
- Public service companies receive an automatic reduction in
the fourth and seventh years following the last revaluation if
the level of assessment drops below 90% as determined by the Department
of Revenue. That level of assessment becomes the percent of value
on which the public service companies tax bills are computed.
Revaluation cycles of four years or less eliminates this revenue
loss. Catawba County's revenue loss for years 1995 thru 1998 was
$2,285,253.89. If the County can avoid losing this large
amount of revenue by conducting more frequent revaluations, the
Board of Commissioners are able to set a lower tax rate.
- A more accurate future tax base and tax rates can be forecast
with a reduced period between revaluations.
|
| Q. |
Will
someone from the tax office visit my home? |
| A. |
Revaluation
is a lengthy process that takes over three years to complete. As part
of the process, appraisers review information currently on the tax
records about each property, and then visit the property to verify
accuracy. The appraiser may or may not actually drive onto your property
and come to your door, depending upon whether he or she sees a discrepancy
in our current listing data. |
| Q. |
Will
my taxes increase because of a revaluation? |
| A. |
This
is difficult to say for two reasons. It depends upon:
- how much your property value has changed, and
- how much the tax rate changes. The Board of Commissioners set
the tax rate annually, based upon the budgetary requirements of
the County. Revenues
received from all sources, including the State, are considered
as the Board sets a tax rate.
|
| Q. |
When
will I know what my new assessment is? |
| A. |
The
tax office mailed revaluation notices to property owners in November
2006. |
| Q. |
What
if I disagreed with the new assessment? |
| A. |
Informal
appeals were held in December 2006 for property owners who questioned
the new assessment mailed to them in November 2006. Results
of those appeals were mailed to all appellants, beginning in February, 2007.
If your appeal was not resolved through the informal process, or if
you decided to appeal for the first time, hearings
before the local Board of Equalization and Review were held beginning in April, 2007.
If, after a hearing before the Board of Equalization and Review, the
issue was still not resolved, a taxpayer could have appealed to the North Carolina
Property Tax Commission, and ultimately to the courts.
|
| Q. |
I've
heard of a document called the "Schedule of Values". What is it? |
| A. |
The
Schedule of Values is a set of standards and rules specifically formulated
by the Catawba County revaluation staff for appraising property in
Catawba County. These standards and rules are really a voluminous
"appraisal manual" which assure that all property will be appraised
in a uniform, accurate and consistent manner. This Schedule
of Values has been created following the County's study of the current
real estate market and it is this schedule which will be used to set
the new property values in the County.
The
Schedule of Values for the 2007 revaluation was formally presented
to the Board of Commissioners by the Catawba County Tax Assessor in
September 2006, and was adopted by the Board on October 2, 2006. |
| Q. |
May
I see the Schedule of Values? |
| A. |
Yes,
you may. N.C. General Statute 105-317 directs that "on the same day
that they are submitted to the board (of commissioners) for its consideration,
the assessor shall file a copy of the proposed schedules, standards,
and rules in his office where they shall remain available for public
inspection." |
| Q. |
When
will my taxes be due? |
| A. |
Each
year, tax bills are normally mailed in July or early August, and are
due September 1. Your first tax bill reflecting new values
as a result of the 2007 revaluation was mailed on July 27, 2007.
Taxpayers will have through January 5, 2008 to pay before incurring
a penalty. |
| Q. |
Isn't
the purpose of a revaluation just to raise taxes? |
| A. |
No.
The goal of the revaluation is to help ensure that all property owners
in the county only pay his or her fair share based upon the value
of their property. To keep the values constant over a long period
of time creates inequity and, in effect, rewards the owners of more
desirable properties (properties that have appreciated at a faster
rate) at the expense of owners with less desirable properties. |
| Q. |
What is the time line of
events for Catawba County's 2007 revaluation? |
| A. |
- Mid-November
2006
Mailing
of new valuation notices to property owners.
- Beginning
in Late November 2006
Informal
hearings with staff appraisers for property owners who question
new values.
- Beginning
in April 2007
Hearings
for property owners who formally appeal new values to the Board
of Equalization and Review.
State law stipulates that property
owners have 30 days from the date the Board of Equalization and Review
issues its decision to appeal to the North Carolina Property Tax Commission.
If still not resolved, appeals may be made to the North Carolina Court
of Appeals. |
| Q. |
What
if I have other questions that are not answered here? |
| A. |
If
you have additional questions or need clarification on any aspect
of the revaluation process, you may call the Catawba County Revaluation
Office at 828 / 465-8998. |
ADDITIONAL
IMPORTANT INFORMATION
- If you are 65 or older or totally and permanently disabled,
qualify under the income requirements, and make a timely application,
you may receive a reduced assessment on your residence. For more
information or to apply, please call 828 / 465-8401.
- If you are commercially growing timber, agricultural, or horticultural
products, and submit a timely, qualifying application, you may
receive a reduced assessment of your property. For more information
or to apply, please call 828 / 465-8421.
|
