NCGS & ● Requires Counties to Establish market values ● Value must be at or near 100% of current market value ● Utility companies requires values to be between % of market values ● Utility companies requires values to be between % of market values ● To reflect changes in the market conditions

Appraisal Process Collect & Review Sales Collect & Review Sales Route all 369 County Maps Route all 369 County Maps Map Sales From 2013 & 2014 Map Sales From 2013 & 2014 Analyze Construction Cost Analyze Construction Cost Develop Land Pricing Model Develop Land Pricing Model Develop Schedule of Values Develop Schedule of Values Apply Schedule of Values to Properties Apply Schedule of Values to Properties

Appraisal Process Continued Visit Properties Review Sales to Comparable Properties Identify Any Areas of Concern Correct any Concern Areas Send Notice of Value to Property Owner Receive Any Informal Appeals and Review Send Notice of Change Begin Taking Formal Appeals to Board of Equalization Set Hearing Dates and Times After all Hearings send Notice of Change from Board of E&R Property Owners then have 30 Days to Appeal to Property Tax Commission in Raleigh, NC

 Comparable Sales Approach: Subject property is compared with similar properties that have recently sold.  Income Approach: This approach uses income derived from similar properties in the same area. Income is not the value that individual business generate but what similar income producing properties will produce. An Example would be that all Two Bedroom apartments rent for $500 monthly in a given location thus the value of a 20 unit apartment can be determined.  Cost Approach: Construction cost less depreciation THREE APPROACHES TO VALUE

MARKET VALUE  Market value is the most probable selling price that a property will bring in a competitive and open market with both the buyer and seller being motivated and well informed.

Transactions resulting from auctions Short sales Some Estate sales Bank liquidation sales Foreclosures Family or associates sales MARKET VALUE IS NOT

u The most obvious is an addition or remodeling of a structure. u Supply and Demand in a particular type of property. u The local economy and the factors that determine its stability. u Cost of replacing or building similar structures.

u County’s Growth Rate Has Led WNC For Past Twenty Years u County Leads WNC In Sales Growth u Population Is Expected To Continue To Rise

REAL ESTATE MARKET INDICATORS

REAL ESTATE SALES

EXCLUSIVE HOME SALES

REAL ESTATE MARKET ACTIVITY

2014 TAX VALUE OF ALL PROPERTY $ 9,348,950, TAX VALUE x TOTAL TAXES $26,083,570 REVENUE NEUTRAL TAX RATE

2015 TOTAL REAL ESTATE VALUE $ 7,733,733, ESTIMATE PUBLIC SERVICE $ 130,000, ESTIMATE MOTOR VEHICLES $ 271,595, SUB TOTAL $ 8,135,328,213 LESS APPEALS’ VALUE $ (100,000,000) LESS HOMESTEAD EXCLUSSION $ ( 70,000,000) NET TOTAL NEW TAX VALUE $ 7,965,328,213 ROUND TO $ 7,965,000,000

 $ 7,965,000,000  OVERALL DECREASE OF VALUE: 14.80%  $7,965,000,000 / 9,348,950,012  REAL ESTATE ONLY DECREASED % $ 7,563,733,213 / 8,848,875,468

 TAX REVENUE NEEDED/TOTAL VALUE  $26,083,570 / $7,965,000,000 =  ROUNDED TO $.0033

2007 VALUES & TAXES COMPARED TO 2015 VALUES & TAXES

PIN # HOUSE & 87 ACRES 2007 Value $1,248, Tax Rate Base Tax $ 3, Value $935,160 Est. Tax Rate.0033 Base Tax $3,086 Savings $ 396 Decrease of 11.4%

2007 Value $ 316, Tax Rate Base Tax $ Value $ 260,500 Est. Tax Rate.0033 Base Tax $ 859 Savings $ 23 Decrease of 2.6% PIN #

PIN # Value $ 148, Tax Rate Base Tax $ Value $ 100,880 Est. Tax Rate.0033 Base Tax $333 Savings $ 80 Decrease of 20%

PIN # Value $1,166, Tax Rate Base Tax $3, Value $ 907,620 Est. Tax Rate.0033 Base Tax $2,995 Savings $ 260 Decrease of 8%

PIN # HOUSE & ACRES 2007 Value $522, Tax Rate Base Tax $1, Value $396,170 Est. Tax Rate.0033 Base Tax $1,307 Savings $149 Decrease of 10.4%

PIN # Value $ 182, Tax Rate Base Tax $ Value $ 220,000 Est. Tax Rate.0033 Base Tax $ 726 Increase of $ 216 Increase of 42.35%

PIN # Value $1,002, Tax Rate Base Tax $2, Value $1,846,810 Est Tax Rate.0033 Base Tax $ 6095 Increase of $ 3,297 Increase of 118%

PIN # Value $ 115, Tax Rate Base Tax $ Value $111,450 Est. Tax Rate.0033 Base Tax $368 Increase $46 Increase of 14.3%

PIN # Value $127, Tax Rate Base Tax $ Value $127,730 Est. Tax Rate.0033 Base Tax $421 Increase $64 Increase of 18%

PIN # Value $ 14,155, Tax Rate Base Tax $ 39, Value $ 10,190,130 Est. Tax Rate $.0033 Base Tax $ 33,628 Decrease $ 5,865 Decrease of 14.85%

Reassessments are volatile and established procedures must be followed. The established appeal process outlined by the Machinery Act must be adhered to. Equality between similar properties must be one of the top priorities. Properties will not increase at the same percentage countywide. Location is still very much a factor. FINALLY

Things to Remember  Values must be set at 100% of Market Value.  Value may or may not be what the owner has invested in the property.  Different classes of properties change at different rates.  Location or demand on certain types of properties will affect values differently depending on the market.  Percentage of increase is not a reason for an appeal.  Burden of proof is on taxpayer to show that property is excessively overvalued.  NC courts have ruled that tax assessments are assumed to be correct and are accepted until proof is provided to the contrary.

Summary of Important Information  Values will be finalized by December 2014  Notices will be mailed in January 2015  Appeal information will accompany the notice of value  Informal appeals must be a written appeal supported with documentation of value  Board of Equalizations starts April 2015

2015 VALUATION BY TOWNSHIPS

IN-HOUSE REAPPRAISAL COST $355,000 over 8 years Less Discoveries $133,000 43,500 Real Estate Parcels $ 222,000/43500= $ 5.10 per parcel County savings of $21.84 parcel Total Savings for 2015 $ 1,083,150 Total savings to Macon County since 1999

QUESTIONS