What does the term “revaluation” or “reappraisal” mean? Revaluation, also referred to as reappraisal, means that the local property tax officials are updating the value of all real property in Halifax County by determining the market value of all real property as of the effective date of the reappraisal. In this case, the effective date is January 1, 2024. All subsequent reappraisals will be every four years.
Why and for what purpose do we conduct reappraisals? North Carolina law requires each county to complete a real property revaluation at least once every eight years. The primary purpose of a revaluation is to equalize the tax burden among all classes of property. The 2024 revaluation in Halifax County was performed to ensure assessments reflect current market value and that taxation is fair and equitable for our citizens.
What is meant by “market value?” As defined by NC 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 market value is established when two parties trade property for money, both know what can and cannot be done with the property, and an agreement on the price is reached and the trade occurs. Market value is generally determined from sales between unrelated and unbiased buyers and sellers. An auction and foreclosure are examples of sales that are not considered as market value. In the state of North Carolina all properties are assessed at 100% market value, with the exception of exemptions, exclusions and deferments.
Will my taxes increase because of a reappraisal? This is a difficult question to answer because changes to your tax bill depend upon two factors.
- How much the property value changed from last year.
- How much the tax rate changes.
The County Board of Commissioners and other district boards set the tax rate annually based upon their district’s budgetary requirements. The tax rates must be set before July 1 each year and are determined during the budget processes prior to that time.
Who conducted the 2024 reappraisal? The 2024 countywide reappraisal was conducted by employees of Halifax County with some assistance from an appraisal firm.
Why do values change? The simplest answer to this question is that value is affected as people’s preferences change and as the economy fluctuates. There have been four years of changing property values since the last reappraisal in 2020. Beyond changing property values and from the perspective of the marketplace, all property does not change value at the same rate. Property values are most often impacted by many factors with the location of the property being one of the most important.
How was the market value of my property determined? Property values are not created or set by the Tax Department’s appraisers. People who buy and sell real estate in the open market establish market values. The appraisers’ jobs are 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 available data and the type of property being appraised, there are several methods an appraiser may use to determine value.
- Sales Comparison Approach: this is the method most commonly used and it compares your property with similar properties that have recently sold.
- 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 fair market rental income the property or properties could generate.
What if I disagree with the new assessment? The procedures for filing an appeal of your new real property assessment to the Halifax County Tax Assessor are outlined below for your information and assistance.
1) Your informal appeal should be made in writing to the Halifax County Tax Assessor (PO Box 68, Halifax, NC 27839 or emailed to taxhelp@halifaxnc.com), within 30 days of receiving your 2024 Real Property Revaluation Notification. In your written appeal, please provide the PARCEL ID, your opinion of value, and all contact information including your phone number, mailing address and email address.
2) The taxpayer has the burden of proving that his/her property was incorrectly valued by the Tax Department and that the tax value substantially exceeds the true market value of the property as of January 1, 2024.
3) Helpful information would include, but is not limited to, a copy of a recent appraisal of the property, comparable property sales information of like properties, proof of damage or disrepair, proof of termite or moisture damage from a licensed company or other information that will substantiate your objection to the value. Statements of income and expenses for income-producing property and replacement or reproduction costs will also be accepted.
4) Written appeal requests will be followed up with a phone call to the taxpayer in regard to an informal hearing with a staff appraiser. If the valuation issue cannot be resolved at an informal appeal, the taxpayer will still be given the opportunity to appeal to the Board of Equalization and Review by requesting a hearing before the Board. This request should be made in writing to the Tax Assessor. Individual taxpayers may appear before the Board of E & R personally or be represented by counsel. An appeal by any other type of ownership such as corporations or LLCs will require the taxpayer to be represented by an attorney licensed to practice law in North Carolina. The Board of E & R is scheduled to meet in the month of April 2024 and will adjourn at a time scheduled and announced publicly by the Tax Assessor.
5) At any time during the appeal process, the appraiser may revisit the property to verify tax information. This may include remeasuring and photographing the property.
6) The failure of the taxpayer to formally appeal in writing and to supply any additional documentation for the appeal prior to the hearing date will result in a dismissal of the appeal. Taxpayers are urged to provide the Tax Assessor with all information about the appeal prior to the hearing in order for him to have a meaningful opportunity to respond and to potentially adjust the values prior to the hearing.
Please call (252) 583-2121 or email taxhelp@halifaxnc.com for more information regarding real property assessments.