Revaluations come out this week. Here's what Orange County property owners can expect.

Orange County homeowners could soon see higher tax rates as property values increase by around 50 percent, according to Orange County tax administration officials. 

Revaluation is a process that reassesses properties to reflect their current market value. Counties must conduct a tax revaluation every 8 years in compliance with state law. Orange County follows a four-year cycle with the most recent evaluation being Jan. 1.

There was a 52 percent increase in property value in Orange County, which reflects the average price that properties sold for on the market, according to Orange County Tax Administration Director Nancy Freeman. 

Freeman said evaluations of a residential property are based on market cost, income and recent sales. Municipalities use these updated values to determine the tax rate necessary to collect revenue to fund the county and towns, Freeman said.  

In light of funding cuts at the federal and state level, local governments have more responsibility to provide for their constituents, according to the NC Budget & Tax Center. 

“We are trying to prepare people to realize that there probably will be an increase in taxes,” Freeman said. “And that is a concern for some of our residents or some of our property owners that are struggling, especially those on a limited income.”

Freeman said that the primary goal of the revaluation process is to redistribute the tax base so that it is fairly distributed between properties according to their value.

Property taxes are the primary source of revenue for local governments, according to the Institute on Taxation and Economic Policy.

“Since property ownership remains relatively steady and tax bills are collected annually, it creates a predictable revenue stream that helps fund all the essential public services, like schools, roads and emergency services,” Orange County Tax Administration Business Officer Leslie Wilcox said. 

The North Carolina General Assembly offers three tax assistance plans for those who may struggle with the increases in property tax: the Elderly and Disabled Exclusion, the Disabled Veteran Exclusion and the Circuit Breaker Tax Deferment. The Longtime Homeowners Assistance program also alleviate financial burden for homeowners who have lived in their homes for more than five years.

Property owners may appeal their appraisal using a form that will be released alongside their revaluation notices. The form is also available online. Other options include bank draft programs, and what Freeman calls “creative payment options” where property owners can break up payments over the course of the year.

“People come to this office, and they're telling us it's hard for them to get [property taxes] paid,” Freeman said. “So the best thing we can do is provide that customer service to help them out any way that we can.”

Chapel Hill Town Council Member Theodore Nollert said that insufficient funding from the General Assembly creates issues for local government and forces them to increase their tax rates. 

“Cities and counties have to pick up the slack in order to provide the services that their residents value, and that places an extra burden on residents via local property taxes,” Nollert said. 

Revaluation notices are expected to be released by Friday. 

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