AN ACT TO CORRECT GENERAL REAPPRAISALS RESULTING IN PROPERTY VALUES THAT DO NOT COMPLY WITH THE REQUIREMENTS OF NORTH CAROLINA LAW BY SETTING FORTH THE STEPS REQUIRED TO BRING THE GENERAL REAPPRAISAL INTO COMPLIANCE WITH THE APPLICABLE PROPERTY TAX MANDATES. Enacted July 26, 2013. Effective July 26, 2013.
Summary date: Jul 30 2013 - View summary
Bill S 159 (2013-2014)Summary date: Jun 6 2013 - View summary
House committee substitute makes the following changes to the 1st edition.
Makes deletions to the whereas clauses and Section 1, deleting any occurrence of the word corroborating as it applies to evidence.
Adds clarifying language to Section 1, providing that boards of county commissioners must undertake the specified measures required by the act, notwithstanding any other provision of GS Chapter 105, Subchapter II, not cited in the act.
Amends one of the conditions, that if met, require a board of commissioners to take specified measures, providing that independent evidence that the majority of commercial neighborhoods in the county possess significant issues of inequity must be reviewed by a qualified appraisal company.
Makes a technical change.
Amends Section 2, clarifying that the same qualified appraisal company that provided or reviewed the evidence of inequity above can also conduct the review of all the values in the county by neighborhoods and make recommendations as to the true value of the property. Provides that the board of county commissioners must make any required specified changes to the abstract and tax records of the property either after the reappraisal is completed or after each neighborhood review required by Section 2 is complete (previously, required that the changes only had to be made after the reappraisal). Provides that the provisions of GS 105-380 do not apply to the issuance of any refund under the provisions of this act.
Provides that any interest on taxes paid on parcels with errors that resulted in the parcels having an overstated value must be calculated at a rate of 5% per annum [previously, provided that the interest would be calculated as if there was an order of the county board of equalization and review reducing the valuation of the property pursuant to GS 105-360(e)]. Provides that the discovery penalties in GS 105-312(h) do not apply to the additional taxes levied on parcels as a result of errors.
Bill S 159 (2013-2014)Summary date: Mar 4 2013 - View summary
Identical to H 200, filed 3/4/13.
Directs boards of county commissioners to either (1) conduct a reappraisal, by no less than one appraiser certified by the Department of Revenue (DOR) for mass valuation per 4,250 parcels, within 18 months, applicable to all tax years from and including the tax year when the last general appraisal was performed, or (2) have a qualified appraisal company conduct a total review of all the values in the county by neighborhood and make recommendations as to the true value of the properties as of January 1 of the year of the last general review, when all of the following conditions are met:
(1) County has independent, corroborating evidence that the majority of commercial neighborhoods in the county have significant issues of inequity in valuations.
(2) County has independent, corroborating evidence that residential neigborhoods have instances of inequity or erroneous data that had significant impact on the valuation of the neighborhood.
(3) County's last general reappraisal was performed for the 2008, 2009, 2010, 2011, 2012 tax year.
(4) The independent, corroborating evidence came from a review performed by a qualified appraisal company selected and retained by the county and registered with the DOR and had a sample size of no less than 375 properties.
Directs boards of commissioners to, after the above review or reappraisal is completed, make any change to property abstracts and tax records needed to ensure that assessed values of incorrectly appraised properties in the county reflect the true values, effective the year of the last general reappraisal, applying the adjusted values for each tax year until the next general reappraisal, unless those values are changed pursuant to GS 105-287.
The changes noted above will be prioritzed as follows:
(1) Adjustments to parcels with errors that resulted in significantly overstated value.
(2) Adjustments to parcels with errors that resulted in significantly understated value.
(3) Adjustments to parcels with errors that resulted in overstated value.
(4) Adjustments to parcels with errors that resulted in understated value.
Directs any overpayment of taxes, as a result of overstated valuations, to be refunded, with interest paid on the overpayment pursuant to GS 105-360(e). Also requires additional payment of taxes on properties that were undervalued to be paid in accordance to GS 105-312.
Includes a severability clause.