County representatives from across the state have joined together to form the NC Reappraisal Study Committee – a group tasked with investigating & analyzing the potential benefits of moving from an 8-year to a 4-year real property reappraisal cycle.
Stan Duncan & Brent Weisner, both members of the Reappraisal Study Committee, co-wrote an article called Making the Case for a Four-Year Reappraisal Cycle. The article explains that a four-year plan “is particularly attractive for staffing and budgeting concerns of NC counties” when considering the general time schedule being proposed1.
An overview of what this four-year reappraisal timeline could look like in NC is listed below (Duncan and Weisner):
What a Four-Year Cycle Could Look Like
- Year 1: The Year of the Reappraisal (Effective as of January 1st of the calendar year):
- Complete mailing notices of reappraisal values.
- Conduct all informal and Board of Equalization & Review meetings.
- Review appeals at the local level.
- Maintain inventory of legal and physical changes to property.
- Identify areas for redress in preparing for the next reappraisal.
- Year 2 of the Reappraisal Cycle:
- Complete all appeals pending before the NC Property Tax Commission, either by Consent Agreement or adjudication by hearing before the Commission, and possibly appellate courts.
- Continue to maintain inventory of legal and physical changes, and continue redress areas of concern for the next reappraisal.
- Year 3 of the Reappraisal Cycle:
- Increase attention to market analysis, especially those market forces having changed since the effective date of the most recent reappraisal.
- Continue to maintain inventory of legal and physical changes.
- Develop preliminary Schedules of Values, Standards, and Rules for the upcoming reappraisal.
- Year 4 of the Reappraisal Cycle:
- Continue to monitor the local real estate market by location and property type in order to accurately prepare and apply the Schedules of Values, Standards, and Rules to be adopted by the board of county commissioners for the upcoming reappraisal.
- Continue to maintain inventory of all legal and physical changes, verify areas of concern identified during the first two years of the cycle have been adequately studied and remedied if necessary, and review and reappraise all neighborhoods at market value with attention to equity among and between all neighborhoods, value stratifications, and property types.
- Year 1: The Year of the Next Reappraisal
- Start the process over again, while applying lessons learned and knowledge gained from the previous reappraisal.
Overall, “a four-year reappraisal cycle would eliminate the need for conducting sales assessment ratio studies in the fourth and seventh years under the current eight-year reappraisal cycles as provided for under G.S. 105-284(b), the Uniform Assessment Standards. And, under the current law, public service companies could only challenge the median ratio established in the year of the reappraisal.”1
1. Duncan, Stan, and Brent Weisner, “Making the Case for a Four-Year Reappraisal Cycle,” Print 2014.