Frequently Asked Questions

Revaluation is the process of updating all property tax assessments in Orange County to reflect market value as of a set date. For Orange County, this date is January 1, 2025. During this process, the tax office reassesses all real property, including land, buildings, and improvements. North Carolina law requires counties to revalue properties at least every eight years, Orange County follows a four-year revaluation cycle.

You can learn more about revaluation in Orange County by watching this short video: https://youtu.be/46YnjTbHS5Q

Most likely yes. However, not all property values will change at the same percentage. Reappraisal is about the equalization of assessed value so that all property owners pay at 100% of market value. The below is an example of how this would occur over the course of several years between revaluations. 

• Home 1 sells for $320,000 and is assessed at $205,100, meaning Home 1 pays property tax on 64% of market value.
• Home 2 sells for $320,000 and is assessed at $295,300, meaning Home 2 pays property tax on 92% of market value.

For this example, let’s say the property tax bills for both homes are $1,000 if the home were valued at the market value of $320,000 (sales price). Without reappraisal and equalization of value, the first home would be paying $640 in taxes while the second would be paying $920 in taxes. 

Your property value affects your share of taxes, but the amount you pay depends on the budget needs of your local government (county, city, fire districts, etc.). Governing boards decide on services for the year, set budgets, and adopt a tax rate to cover the costs. Your property value times the tax rate equals your taxes due.

The Orange County Tax Office is mainly handling this revaluation internally, with help from appraisal consultants to gather data not accessible to staff.

Market data is gathered using different tools. However, the best way to value homes is by comparing sales of similar properties based on location, size, age, style, and condition.

Your new value notice includes instructions and an appeal form. The first step is an informal review by an Orange County Tax Office appraiser. Staff will be available to meet with property owners for this review. If further appeal is needed, a formal appeal can be scheduled with the Board of Equalization and Review. 

To learn more about what to do if you disagree with your new real property tax value, watch this short video: https://youtu.be/-b3uDWnqJmg

At the informal level we would visit the property if the property owner requested it or if the appraiser feels like a site inspection is needed based on the information in the appeal. Currently we have 57 field reviews planned based on the 702 appeals that have been submitted. Typically, at the formal level, most properties are visited, and pictures are taken by the appraiser to be provided to the Board of Equalization and Review. We also offer to schedule times with the property owner so that they can be on site, and visits can be made to inspect the inside of the property. This doesn’t mean that we automatically schedule every visit with the property owner, due to time constraints in completing the appraisal work timely for the appeals. Site visits were also limited in the 2021 revaluation due to Covid restrictions.

North Carolina law states that only the General Assembly can put tax exemptions in place and that all 100 counties are required to follow those same exemptions. One of the exemptions, the Elderly/ Disabled (NC 105-277.1)  is based on  income and being at least 65 years old. We do have a website link to help residents answer questions and see if they may qualify for either of the available exemption programs. We also place information about these exemptions on all our listing forms and our bills that are mailed every year. There is also the Longtime Homeowners Assistance Program that the Orange County Board of County Commissioners (BOCC) has put in place. However, this program is administered by Orange County Housing Department, not the Orange County Tax Office. 

https://www4.orangecountync.gov/tax/TaxReliefForm.htm

The countywide tax base for property value must be established before the BOCC can establish a property tax rate. The BOCC does this annually around June.

The county anticipates additional revenue from an increase in property tax and sales tax each year through natural growth and new development. That natural growth provides between 2-2.5% increase in property tax revenues each year and is used to balance the budget. That natural growth rate is one of the lowest in the Triangle region.

The Tax Office does not collect any personal information on property owners related to income, race, sex or religious affiliation for the purpose of valuation of properties, as this would be in violation of federal law as well as the USPAP standards of ethics. We are also required to value properties at 100% of market value under the uniform appraisal standards in NCGS 105-283.

The county will start its budget process from the Revenue Neutral Rate, which lowers the tax rate proportionately to increase in values. This means that the county does not collect additional revenue based on the increase in values. The county manager may recommend an increase from the revenue neutral rate based on the direct needs of the county and the school districts. 

Real Property does tend to appreciate in value; however, we do make adjustments if a structure is dilapidated or unlivable. Make sure the Tax Office is notified of the condition of the building as we don’t visit every property during the revaluation and do appeal the value if an adjustment has not been noted on the property record already. Sometimes there is some value attributable to a foundation, etc. so that the value is lowered to a residual amount, or it may be lowered to a $0 value. 

All properties and building types do not appreciate at the same percentage. If you have more buyers looking to purchase single-family residential homes than are looking to purchase retail and office space, you are going to see more competition and more growth in the market for the single-family homes. This also applies to location. If more people are looking to move into an area, then the market in that area will increase at a higher rate than in an area that is not seeing as many people looking for those properties. The purpose of revaluation is to get all properties to their true market value, and that is not accomplished by raising all values by a specific percentage.