Reappraisal - Frequently Asked Questions
Why do we have a reappraisal?
- State law requires one at least every eight years
(Randolph County’s last reappraisal was effective 1-1-2007)
- Assure all properties reflect current market value
- To create equity between the four types of assessed property:
- Real estate
- Personal property (Individual and Business)
- Registered motor vehicles
- And public service companies
Randolph County’s reappraisal objective
- To appraise all real estate at 100% of fair market value
- Treat similar property in a similar way
(In other words, appraisals should be accurate and equitable
- To ensure the Tax Department follows the real estate market
What is market value?
- North Carolina General Statute 105-283 states “all property, real and personal, shall as far as practicable be appraised or valued at its true value in money”
- True value shall be interpreted as meaning market value
- True value/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 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.
How is the market value determined?
- We collect and analyze sales data from real estate transactions in the county
- Appraisers must recognize values set by buyers and sellers within market areas
- We determine certain basic characteristics of every property such as building’s dimensions, type and quality of construction, type of heating and cooling, amount of plumbing, age, condition, desirability, usefulness, etc.
- Appraisers consider how much income the property could produce and capitalizes the income into an estimate of true market value
How will my property value change?
- Properties will not change uniformly throughout the county. Depending on the market conditions and recent sales in a market area, the assessed value may increase, decrease or remain relatively the same.
What if I disagree with the reappraisal value of my property?
If you believe the value placed on your real property is not the true market value, you have an appeal process available.
- Informal Appeal forms will be mailed with each Reappraisal Value Notice
- Randolph County Board of Equalization and Review
- North Carolina Property Tax Commission
- North Carolina Appellate Court
Valid reasons to appeal
- Assessment substantially exceeds the actual market value of property
- The assessment is inconsistent with the market value of similar properties within your market area
Invalid reasons to appeal
- The assessed value increased/decreased too much compared to the 2007 assessed value
- The assessed value is just too high
- The owner’s financial ability to pay taxes
- Taxes too high
How will the reappraisal affect the tax bill?
- The reappraisal determines only one of the two components of the tax bill - the assessed value. The other component, the tax rate, is set by the elected officials.
- The 2014 tax rates will not be set until mid-June 2014. The elected officials will determine how much revenue will be needed for the upcoming fiscal year.