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Appealing Your Property Tax Bill:
You May Not Be Entitled To An Adjustment Because Values Are Down
The current real estate slump has caused some properties to be worth less this year than their value for property tax purposes. The county tax assessor must undertake a general reappraisal of all real property every eight years unless the local taxing authority has chosen to advance its reappraisal scheduled to every four years. When the county undertakes the statutatory general reappraisal of all property it must assess property at market value. You can find out your county's reappraisal schedule from your local tax assessor. Here is the schedule for a few North Carolina counties:
Guilford - Last Appraisal 2004; Next Appraisal 2012
Forsyth - Last Appraisal 2009; Next Appraisal 2013
Mecklenburg - Last Appraisal 2003; Next Appraisal 2011
Wake - Last Appraisal 2008; Next Appraisal 2016
Alamance - Last Appraisal 2009; Next Appraisal 2017
New Hanover - Last Appraisal 2007; Next Appraisal 2011
Unfortunately, in a year other than a general reappraisal year, a taxpayer cannot successfully challenge the tax valuation of property based on a decline in the overall market. The North Carolina General Statutes permit a tax assessor to increase or decrease the last appraised value of real property only if the value has changed for one or more of the following reasons:
1. There was a clerical or mathematical error in the original appraisal.
2. There was a misapplication of the appraisal schedules, standards, or rules in the original appraisal.
3. A conservation or preservation easement has been put on the property.
4. There has been a change to the permitted use of the property.
5. There has been a physical change to the land or the improvements or change in value resulting from a factor other than:
a. Normal, physical depreciation of the improvements.
b. Economic changes affecting everyone generally.
c. Improvements to the property made by:
i. Painting
ii. Soil conservation
iii. Landscaping
iv. Fire protection
v. Preserving or enhancing water habitat for wildlife This means that a taxpayer can always challenge a value, but will be successful (usually) only if he can show the original value was wrong. For example, a Guilford County taxpayer will likely be successful in challenging the assessment on his or her 2009 tax bill only if he can show that the 2004 value was wrong in 2004 or if one of the other factors above applies. Taxpayers suffering from general market value decline since the last general reappraisal must wait until the next general reappraisal for relief.
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