Revaluation is the process of reappraising all properties within the county for tax assessment purposes. The purpose of revaluation is to re-establish equity among properties that may have appreciated or depreciated in value at different rates since the County's last revaluation.
Each county within the state of North Carolina must conduct a reappraisal of all real property (land, buildings, and other improvements to land) at least once every eight years by North Carolina statute. The reappraisals will be effective January 1 of the year prescribed.
The process has two objectives:
- Value properties at current market prices, and
- Equitably distribute the cost of local government among the property owners.
Any county may conduct a reappraisal of real property earlier than the required octennial (8-year) plan if the board of county commissioners adopts a resolution stating the new reappraisal year and then forwards a copy of the resolution to the Department of Revenue.
In a non-revaluation year, North Carolina counties are not allowed to change tax assessments, up or down, based on changes in the economy. The effective date of the most recent revaluation was January 1, 2017, and all current tax assessments for real property reflect a market value as of that date. The next revaluation will be effective January 1, 2025, and tax assessments will be updated to reflect market value as of that specific appraisal date.
All real property must be reappraised in accordance with the provisions of G.S. 105-283 and 105-317.
G.S. 105-283 states that all real and personal property shall as far as practicable be appraised or valued at its true value in money. True value is interpreted as market value. Market value is defined as "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. Market value is not necessarily the price for which a realtor may list the property, nor is it the price for which a father may sell his son a piece of land. Market value is generally determined from sales between unrelated and unbiased parties. This is known as an "arms- length" transaction.
The primary goal of a general reappraisal is to be equitable. This means to fairly, equally and uniformly appraise property at its true value in money (market value). It is not the purpose of a reappraisal to increase revenues or to provide tax breaks. Since ad valorem taxes (property taxes) are based on value, it is important that all property be valued periodically on a uniform bases. Since market value appraisals are the foundation for assessments, equalized values create equalized and uniform taxes.