[Durham INC] FW: Durham Tax Administrator Offers Important Tips on Reviewing New Appraisal Values

[Kelly Jarrett]

From the press release on tax appraisal appeals:  
"The best way to resolve apparent inconsistencies in neighborhood values is for all affected property owners to appeal.  Although appeals usually come only from property owners who believe that their property's value is incorrect, it is also possible for a property owner to appeal the value of another owner's property, if they believe the other property has been undervalued."
 

Kelly Jarrett. Sent from iPhone. Please take misspellings and autocorrect errors lightly. 


On Jan 5, 2016, at 6:46 PM, Pat Carstensen <pats1717 at hotmail.com> wrote:



Date: Tue, 5 Jan 2016 17:32:03 -0500
From: lists at dconc.gov
To: pats1717 at hotmail.com
Subject: Durham Tax Administrator Offers Important Tips on Reviewing New Appraisal Values


Durham County Government	Press Release
Durham Tax Administrator Offers Important Tips on Reviewing New Appraisal Values



Durham, NC - January 5, 2016 -  Since 2016 reappraisal notices were mailed countywide last month, Durham County Tax Administrator Kimberly Simpson has received inquiries from citizens.
 
"Whenever the county conducts a general reappraisal, we always expect a large number of questions," said Ms. Simpson. "Historically, those questions have been along the lines of 'How can I find comparable sales for my property?' or 'How do I appeal my value?' "For 2016, we developed online products to help address those questions in advance, and we have been very happy with the results. What's new this time, however, is that the market has shown us that some areas of the county, particularly within parts of the City of Durham, have had tremendous value increases since the last reappraisal was conducted in 2008.  Those unusual market conditions are raising questions among property owners that we just haven't seen in the past."
The tax office maintains an extensive, searchable, Frequently Asked Questions (FAQ) section on the county website, accessible through www.dconc.gov/taxhelp, and this page will soon be updated with the following questions and answers:
 
Q: How is my value per square foot determined, and how could it be different from my neighbor's?
A: While it's tempting to compare properties on the basis of square footage alone, that approach does not account for the unique characteristics that distinguish one property from any others.  There are several factors that are considered for each individual property in order to account for the normal variation between properties-factors such as construction material (for example, wood frame or brick), number of stories, foundation type (slab, crawl space, basement, etc.), and the quality of the construction, as indicated by the craftsmanship and choice of materials used in building the house.  Whether extra space is finished or unfinished can make a difference, too, especially for basements, bonus rooms, or attic space.
While all of these factors add up to an initial value per square foot of a house, we also need to consider factors that could lower a property's value per square foot, such as the age of the property and the condition it's in.  As a building ages, normal wear and tear will reduce the life of the structure unless building systems are maintained and replaced as needed. But since it's up to the individual property owner to decide what to fix or replace, and when, a neighborhood with homes that are decades old will normally have properties that range in condition from "nearly as good as new" to "in pretty rough shape."
 
So, for any neighborhood, the normal variations between properties-not just size, but age, configuration, building materials, quality, and others-are the reason that we would expect to see different values per square foot.  Furthermore, these differences are magnified when a neighborhood is in transition due to renovation, market conditions, or a combination of these factors.
 
Q: Are these new tax values pushing homeowners and tenants out of neighborhoods in transition?
 
A: The new tax values are simply a reflection of what is happening in the real estate market.  The market is made up of thousands of willing buyers and sellers, who have collectively demonstrated typical selling prices for different types of properties, and in different neighborhoods. 
 
Whenever there are rapid shifts in market values, we recognize that there is the potential for residents to be displaced, if the market shifts are permanent and if they make living costs less affordable.  While this is an important and relevant social concern, it is still a separate issue from market value.
 
In North Carolina, property tax law, including property tax appraisal, is controlled by state statute, and nearly all properties are required to be appraised for tax purposes at 100% of current market value, where "current" means the date of the last general reappraisal. Neither the county nor the city has the authority to appraise properties any differently under current state law.
 
Q: Where can I find the state statutes that control property tax law in North Carolina?
 
The statutes are primarily found in Chapter 105 of the North Carolina General Statutes, in sections 105-271 through 105-395.1.  The North Carolina General Assembly maintains an online version of the General Statutes at its website, www.ncleg.net.
 
Keep in mind that the North Carolina courts have interpreted many provisions of the General Statutes, and how the statutes apply can depend on very small variations in a particular set of circumstances.  You should consult with an attorney licensed to practice in North Carolina if you have questions about how a statute should apply to your situation.
 
Q: My property value changed by xxx%, and that's different from my neighbor's value change.  How is that possible?
 
Not all properties change in value at the same rate, or in the same direction.  While this is more apparent when properties are located in different areas, even nearby properties can experience different changes in value over time.
 
As described in an earlier question, there are several factors that are considered in estimating the value of a particular property.  During the years between reappraisals, some of those factors can impact individual properties differently.  For example, one property may undergo some form of renovation or other update, while another may not.  One may need more repair items addressed than another.  We may have even collected more complete data about both houses, and are simply better able than we were eight years ago to translate that information into more accurate values.
 
The eight-year time span between reappraisals can also magnify the valuation differences between individual properties. This is one of the reasons that we hope to transition to a shorter four-year cycle for the next reappraisal.
 
Q: Some values in my neighborhood seem to be higher or lower than they should be. Can my whole neighborhood be reviewed?
 
We actually review every neighborhood in the county several times during the reappraisal process.  The reason we do repeated reviews is that market values can change fairly quickly, and we want to make sure that we are able to reflect the current market in our appraisals as accurately as possible.
 
When the 2016 value notices were mailed to property owners, the best information available to us at that time indicated that, for every neighborhood in the county, property values as a whole were very consistent with actual sale prices in those neighborhoods (or in similar neighborhoods, if there were insufficient sales).  So, another review of a neighborhood, without additional property information, would not tell us anything different.
 
The best way to resolve apparent inconsistencies in neighborhood values is for all affected property owners to appeal.  Although appeals usually come only from property owners who believe that their property's value is incorrect, it is also possible for a property owner to appeal the value of another owner's property, if they believe the other property has been undervalued.
 
Q: If I find an error in my property listing, can I get a refund for any years in which the error existed?
 
Errors can only be corrected for the current year going forward. In almost every situation, the county is prohibited by statute from changing the value or bill from a prior year.
 
Ms. Simpson adds, "We really want to encourage property owners to take advantage of the appeals process if they believe there is an error in their property value, or if they believe another property has been undervalued. Although sometimes we and a property owner may simply have a different opinion of property value, we find that in most situations, we just need more information about their property to reconcile those differences."
 
For additional information, please feel free to contact the Durham County Tax Administrator's Office at Tax-Reval at dconc.gov or 919-560-0300. 
 
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