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, 2020. All subsequent reappraisals following 2020 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 2020 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 2020 reappraisal? The 2020 countywide reappraisal was conducted by employees of Halifax County, not by an outside 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 five years of changing property values since the last reappraisal in 2015. 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.
Please call (252) 583-2121 or email firstname.lastname@example.org for more information regarding real property assessments.