If you just saw the value of your house or business property skyrocket on the tax rolls because of the 2022 countywide revaluation – well, hold onto your hats because the past revaluation didn’t really capture how high the value of property in the county had risen.
So, the state of North Carolina is requiring Guilford County to hold another revaluation sooner than called for by the county’s current five-year revaluation cycle, which would have meant another revaluation in 2027.
Guilford County Tax Director Ben Chavis dropped that bombshell on the Guilford County Board of Commissioners at a budget work session on Tuesday, June 6. Chavis told the board that he would need to add more positions in the fiscal 2023-2024 budget so that the department could get started immediately on the required re-revaluation effort.
Every county in the state is required to assess the value of all land, houses, businesses and other real property in the county at least once every eight years. Those valuations determine the tax values of those properties and, along with the tax rate, form the basis for the tax bills sent out to property owners each year.
Guilford County has been on a five-year cycle and just completed one in 2022.
After each revaluation, counties in North Carolina must take a sample of assessed value and compare it to the actual sales value of homes, land and other real property that has sold. If on average the assessed value is less than 85 percent of the actual sale value, or more than 115 percent above the sale value, state law forces the county to conduct a new revaluation.
The study of sales prices found that Guilford County property that had sold was assessed at about 80 percent of the sale value.
State law says Guilford County must conduct the revaluation by 2026 – earlier than the county’s existing five-year cycle calls for. It takes tax departments a good deal of time to ramp up for revals, which is why Chavis says he needs new staff now.
The astounding jump in housing prices in recent years is the main culprit.
Chavis told the board that 22 counties in the state were having to hold early revaluations due to the requirement in state law.