1990-03-27 Special Meeting
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MINUTES OF SPECIAL MEETING, MARCH 27, 1990
ASSEMBLY
The
session
Tuesday,
Room 0 f
Chestnut
New Hanover County Board of Commissioners met in a joint
with elected official of the beach communities on
March 27, 1990, at 7:30 o'clock P.M. in the Assembly
the New Hanover County Administration Building, 320
Street, Wilmington, North Carolina.
Members present were: Commissioners Jonathan Barfield, Sr.;
E. L. Mathews, Jr.; Nolan O'Neal; Chairman Fred Retchin; County .
Manager, Allen O'Neal; County Attorney, Robert W. Pope; and Clerk
to the Board, Lucie F. Harrell.
Commissioner W. Albert Corbett, Jr. was absent due to
attending an out-of-state international trade conference.
Chairman Retchin called the meeting to order and welcomed
all persons present.
SLIDE PRESENTATION AND OVERVIEW OF THE 1991 PROPERTY REVALUATION
Tax Administrator, Roland Register, presented a slide
presentation and overview of the 1991 Property Tax Revaluation
process. He discussed the following items stating he and Tax
Appraisal Supervisor, Jim Bethune, will be glad to answer
questions.
1. Educating the General Public on the 1991 Property
Revaluation: North Carolina law requires each county to conduct
a revaluation of real property at least every eight years. Every
rule for revaluation is set out by State Statutes and must be
administered accordingly by counties throughout the state. It is
imperative to formulate and disseminate information on this issue
in order to assist the public in understanding the revaluation
process, knowing where tax dollars are being spent, and the
proper procedure for appealing an assessed value.
The most misunderstood portion of the revaluation process is
the idea that if property increases in value, the tax will
automatically increase. This is not necessarily true. What
really happens is that values are equalized with market values;
therefore, some property owners will pay more in real property
taxes, some will pay the same, and some pay less depending upon
how a particular property value has escalated or stabilized in
relationship with the overall change in the county. The tax rate
will be set by elected officials when adopting budgets in June
1991.
2. The Purpose of the 1991 Property Revaluation and
Requirements of the Assessor: The purpose of the revaluation is
not to increase revenue, but to equalize value of each property
according to the current market information.
The tax assessor does not set value; however, the assessor
does research values that have already been established by buyers
and sellers in the local real estate market and with a computer
assisted mass appraisal basis applies knowledge of the local
market, appraisal experience, known property factors, proven
methods and procedures to calculate "Market Value" for each piece
of property.
The process begins in the Tax Office where information is
accumulated and researched. Deeds are reviewed by the staff,
ownership and property maps are updated as necessary, and
information regarding the sale of property is stored in the
computer. Building permits and new construction have been
monitored since 1985, along with the sale of real estate. Data
processing experts assist with the use and retrieval of
information, updating of factors, and recalculation of values
effective on the date of revaluation.
After preliminary information has been calculated,
appraisers conduct field work to verify the data collected. At
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MINUTES OF SPECIAL MEETING, MARCH 27, 1990 (CONTINUED)
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this point, they are not in a position to verify final value;
however, they do verify data on the field cards, observe the
condi tion of the properties and report corrections for
recalculation. All information is recomputed, reviewed, and fine
tuned to adjust for perceived discrepancies. Schedules of values
are developed and approved by the Board of County Commissioners
at which time value notices are calculated and mailed to property
owners on October 1, 1990.
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3. Formula for Establishing the Tax Rate: The simple
relationship is to divide the dollars of revenue required in the
general fund to provide desired services by the total assessed
value of all taxable property. As the total assessed value
increases, the tax rate decreases. What an individual will pay
will not be known until rates are set and bills are calculated in
August 1991.
4. Appeal Process: Generally, the property owner knows
more about the condition and value of his/her property than
anyone else. Sending notices give the owner a chance to accept
or question the valuation. The following steps should be
followed:
Step 1:
Schedule an appointment with the appraiser to
discuss the facts concerning the assessed value.
Almost all errors and disagreements are resolved
at this level. The appraiser has authority to
correct the problem if an error has occurred.
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Step 2:
A tax appeal can be heard by the Board of Equal-
ization & Review which is composed of the County
Commissioners. This board meets annually in mid-
April with the authority to mediate differences
between the assessor and property owner. Also,
the Board of Equalization & Review can decrease
value, uphold the appraised value or increase
the appraised value.
Step 3:
Appeal to the N. C. Property Tax Commission.
Step 4:
Appeal to the N. C. Supreme Court.
Tax Administrator Register stated in summary the appraiser
is to value property at its "true value" in money which is the
price a property would exchange hands between a "willing and
financially able buyer" and a "willing seller", neither being
under compulsion to buy or to sell, and both having reasonable
knowledge of the property and its uses. He also stated the State
provides legal direction supported by the Department of Revenue
which has direct contact with each county tax office and
furnishes advice in the administration of the property tax
function. The Tax Staff is responsible for the administration of
the property tax listing, appraisal, and assessment of real and
personal property. The Board of County Commissioners oversees
the compliance and determines the level of service which may be
supported by the process.
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Questions and answers were presented by the various elected
officials on mass appraisal. Discussion was held on the value of
ocean front property with current erosion problems and overvalued
condominiums at Carolina Beach. Tax Appraisal Supervisor Bethune
stated all of these factors will be considered when reviewing
values for property.
A lengthy discussion was held on providing relief to the
elderly and disabled for escalating property taxes. Chairman
Retchin stated the County has discussed this matter with the
local legislative delegation. He encouraged the other governing
bodies to contact the local legislators and emphasize the
importance of passing legislation during the upcoming session
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jtE) MINUTES OF SPECIAL MEETING, MARCH 27, 1990 (CONTINUED)
to provide some form of relief to assist the elderly and disabled
in paying increased property taxes.
In closing, Tax Administrator Register requested the elected
officials to encourage property owners to contact the Tax Office
when they feel the assessed value exceeds the market value. He
stressed the importance of developing a good relationship between
the citizens of the County and the Tax Office stating the
appraisers will be glad to sit down and discuss facts with a
dissatisfied property owner.
INTRODUCTION OF NEW COUNTY MANAGER
Chairman Retchin introduced Mr. Allen O'Neal, the new County
Manager, stating the County is delighted to have him on board.
ADJOURNMENT
Chairman Retchin adjourned the meeting at 8:50 o'clock P.M.
Respectfully submitted,
~e~H~~
Clerk to the Board
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