Residents across New Hanover County got letters with their new tax valuations earlier this year and, for many, it was sticker shock. The significant increases are based on location, property condition, and recent local sales data — and unless the county makes significant tax cuts, the higher values will mean increased property bills.
The county is currently considering a new tax rate of 35 cents per $100 dollars of assessed value — though some commissioners are pushing for a 29 or 30 cent tax rate, closer to revenue neutral.
Regardless, the revaluation every four years is a bit of a shuffle - it’s an attempt by the county to accurately assess what a property is truly worth. They are based in part on recent sales of similar nearby houses, but also how the relative values of nearby properties.
The 67% average increase has been relatively even across the county, according to Assistant Tax Administrator Chris Boney, though there are outliers.
“I know some areas in the downtown area could have seen some of that just because of some of the market growth they saw that was probably a little more significant in some other areas,” Boney said. “They tend to trend on a lowerselling price to start with. So you've got more of a market that's looking for that,” he explained.
Some homes have seen their valuations doubled, and that’s just an easier number to reach when you’re starting at $140,000 than if you’re starting at $1.5 million.
Around 4,400 people have appealed their revaluations so far. During the last reval four years ago, 60% of the people who appealed saw some kind of change, according to Assistant Tax Administrator Chris Boney.
“The property could decrease based on the data we get. It could not change. And then also, there are times where they increase because we find information that was not listed that we have to add,” he explained.
Increases after an appeal aren’t common, but it helps for the taxpayer to be proactive in finding relevant information, Boney said. “The burden of proof is on the taxpayer to show us inaccuracies or errors.”
There’s still time to appeal, and the process can be complex — like if a resident decides to hire an independent appraiser — or fairly simple, when a resident just fills out the county’s form.
Taxpayers can also look at what they county tax department considers a “comparable sale,” and can submit alternative comparable properties if they disagree. The search tool provided by the county is simple and easy to use, and can generate reports that a taxpayer can attach to the appeal form.
Those who still can’t afford their tax bill do have some options: there are age and disability-based tax relief and deferment programs, plus a specific program for disabled veterans and surviving spouses.
The deadline to appeal a New Hanover County tax revaluation is May 22 at 5 p.m.
