1. What is the Macon County Revaluation Program?
2. What does "Revaluation" mean?
3. Why was my property selected for Revaluation?
4. Who determines the value of my property?
5. How is property assessed?
6. What is "Assessed Value"?
7. What is "Fair Market Value"?
8. What is the difference between assessed value and 100% fair market value?
9. Is the purpose of this revaluation to increase taxes?
10. I disagree with the fair market value assigned to my property in my Preliminary Notice of Market Value. What should I do?
11. What should I provide for the informal review?
12. When will a decision be made concerning my informal review?
13. Does the new assessment include detached structures on my property (shed, porches, etc.)?
14. My property was subject to an assessment adjustment recently. Why is it being reassessed again so soon?
15. What is millage?
16. Why do we have property taxes?
17. I did my own home improvements to save money, but my assessment went up as if I had hired professional help. Why doesn't my assessment reflect the actual cost of the work?
18. Will the Revaluation Program affect my exemptions that I may qualify for?
19. Is there a value placed on my finished basement?
20. What are my rights and responsibilities as a property owner during the Macon County Revaluation Program?
21. How are comparable properties determined?
22. What if I still have questions?

1. What is the Macon County Revaluation Program?

Macon County is in the midst of a thorough and objective property revaluation program involving the analysis of every property in the county. North Carolina General Statutes 105-286 & 105-283 mandated this exhaustive review in order to value all properties at 100% of its Market Value. The goal of the revaluation program is to ensure all property owners in the county pay their fair share in real estate taxes, nothing more or nothing less. The revaluation project will be completed by January 1, 2007. The new assessments will be used to determine the amount of real estate tax due on each property beginning in 2007.

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Revaluation (also called "reassessment," "reappraisal," or "equalization") is the process used to determine the value of a property

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Your property was not "singled out." Every property in Macon County is being reviewed to ensure all property owners in the county pay their fair (equitable) share in real estate taxes. This is important because properties change values at different rates based on many economic and local real estate conditions.

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Buyers and sellers in the market determine the current market value, or price, for each property. The appraiser considers many factors to interpret the fair market value of a property. These factors include square footage, number of bathrooms, location, etc.

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There are three standard approaches for appraising property:

1. Comparative sales approach,
2. Income approach, and
3. Cost approach.

Macon County is using these different methods to interpret the assessed value for properties located within its boundaries. By using multiple approaches, the county is able to verify the accuracy of each assessment.

Comparable Sales Approach. The comparable sales approach compares a given property (called the subject property) to others (comparable properties) that have sold recently. This approach is based on the idea that similar properties that provide the same services or usefulness to a buyer will be valued similarly in the marketplace. The market value of the subject property is determined by comparing it with similar properties in the same area that have sold recently. Before any sales can be used in this approach, it must be determined if they are "arms length" or good, open market sales. ("Arms length," means the property sale is the only connection between the buyer and seller; they are not family members, employer / employee, or linked in any other way.) As there may be outside factors that go into a sale price, the assessor must analyze each sale very carefully. Other important valuation considerations are location, size, condition, quality, and time of sale. The comparable sales approach is useful in determining the value of most residential properties.

Income Approach. The income approach is based on the idea that a property's value is determined by the amount of income the property can produce in future years. The value is found by using a capitalization formula to convert this expected future income into the present value. This approach is especially useful when assessing rental, commercial and industrial properties, because the income and expense information needed for the formula is readily available. Note: In small communities such as Macon, this information is difficult to formulate and process due to small number of comparable properties.

Cost Approach. The current cost of the land added to the cost of replacing the house (or building), and other improvements, form the basis of the cost approach method. The cost of replacing all improvements is adjusted to reflect the age, condition, and usefulness of the existing improvements. Land value is determined separately. The cost approach is most useful in determining the value of properties that do not generate an income and are so unique that there are few or no comparable properties for which sales information is available.

The cost approach is most useful in determining the value of properties that do not generate an income and are so unique that there are few or no comparable properties for which sales information is available.

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Assessed value is the figure used to calculate the real estate tax bill. Historically, the assessed value has been a percentage of the fair market value, which reflects the amount the property would be expected to sell for in a competitive market. To simplify this process, the State of North Carolina made the assessed value equal 100% of the fair market value by enacting NCGS 105-283 in 1974.

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Fair market value is the price for a property that would be agreed upon between a willing and informed buyer and seller under usual and ordinary circumstances. It is the highest price a property would bring if it were exposed for sale on the open market for a reasonable period of time. This definition is a theoretical concept. Many sales occur at prices other than the fair market value. Often the sale price is adjusted because of misinformation, property transfers within families, inclusions of personal property, or time pressures on the buyer or seller. In short, the fair market value would be the sale price under an arm's length transaction under normal conditions.

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Historically, a property's assessed value was represented as a percentage of the market value. In North Carolina, the assessed value was changed to reflect 100% percent of the market value, in 1974. This change was needed to better reflect the market conditions and allow the taxpayer to be able to understand their assessment.

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No. The goal of the revaluation program is to ensure all property owners in the county pay their fair share in real estate taxes. In fact, by state law, tax equity is the desired function of a revaluation. Properties appreciate at different rates and some actually decrease due to changes in the market. To keep the values constant over a long period of time would reward the owners of more desirable properties at the expense of owners with less desirable properties.

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Macon County is making every effort to provide fairness and equity in the Revaluation Program. If you want to challenge the market value assigned to your property, you are encouraged to take one of the following actions:

1. Complete the voucher at the bottom of your preliminary notice of market value and return it to the address provided.
2. If you need assistance completing your appeal form, call Tax Revaluation (349-2143).

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Any documentation you believe supports your opinion of the value of your property. Some examples are: a current Listing Agreement, sale prices of similar properties in the neighborhood that have sold in the last 3 years for less than the fair market value assigned to your property, a recent appraisal of the property, or any information or pictures that may help assist the reviewer in making a decision about your property.

Macon County is conducting these informal reviews as your opportunity to address questions and concerns about your new assessment, not tax payments.

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Informal reviews will take 6-8 weeks to complete before you receive your results in the mail.

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The assessment includes outbuildings (porches, in-ground pools, sheds, and detached garages). However, personal properties such as vehicles, campers, boats and farm equipment are excluded from the assessment.

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Recent adjustments that were made are for property splits due to a sale of a property, or a physical change to the property, like an addition of structures or sub-dividing of lots. These values were based on 2003 computations and do not reflect the market conditions of 2007.

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Literally, a mill means one thousandth. For tax purposes: each mill generates $1 of taxes for every $1,000 of assessed value. Macon County has historically had the lowest or near lowest tax rate in North Carolina. For 2006, the tax rate was .37 per $100 or 3.7 mills.

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Property taxes originated as a method for sharing the costs of government services such as local schools, police protection, fire protection, lighting, water and sewage among people who use them. The amount of tax responsibility for each property is in proportion to that property's value. Governments have traditionally considered property taxes as a relatively stable source of income because they do not fluctuate as do sales and income taxes.

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Assessments are based on the fair market value of the property, not on the building/improvements costs. An owner may have sweat equity in his property that makes it more valuable than his true dollar investment. This owner must be treated as the other property owners in the real estate market that must rely on professionals to construct their homes

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The revaluation program will only determine the assessed value/fair market value of properties and will not affect tax exemptions.

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Traditionally, if you live in a split-level or bi-level home, the area that is finished to the condition of the main living area would be classified as a finished basement. Basements that are not finished to the condition of the main living area are classified as a recreational area, and therefore do not add significant value to your property.

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If you do not agree with the value placed on your property, you should contact Macon County Tax Revaluation to discuss the matter. The appraiser's job is not to artificially increase assessments, but to maintain the most equitable values possible on all properties. Macon County maintains records on thousands of properties; it is reasonable to expect an error or oversight from time to time.

You can help yourself by making sure the information compiled by the county is as accurate as possible. Macon County will gladly answer questions about the revaluation and explain how to correct any misinformation. Property owners can help by providing accurate information.

Any property owner will always retain the right to appeal their property assessment with the Macon County Board of Equalization & Review. Each appeal is more likely to be successful if the property owner can present evidence that comparable properties in the same neighborhood are assessed at lower values. The appeal board will be interested only in the fairness and accuracy of the value placed on the property. Information on tax rates should be addressed with the appropriate taxing authority.

Property owners are entitled to an on site inspection and observation of his property to verify the accuracy of the property characteristics on file for his property ( NCGS 105-317).

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A property may be used as a comparable property if it sold within the last two years and is part of an "arms length" or good, open-market transaction. ("Arms length," means the property sale is the only connection between the buyer and seller; they are not family members, employer/employee, or linked in any other way.) As there may be outside factors that go into a sale price, the assessor must analyze each sale very carefully. If a property meets these criteria, and is similar to your property, it might be used as a comparable property in determining your property's value.

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Macon County is conducting an extensive campaign to inform the public about the County Revaluation Program. Efforts include public meetings and seminars throughout the county, written notices and coordinated efforts through various media outlets. Property owners may obtain additional information by visiting the County’s Web Site www.maconnc.org

Members of the media are encouraged to contact Macon County Tax Administrator Richard Lightner (828) 349-2144.

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