Early reviews by the assessor's office in Mecklenburg County, North Carolina show that, as was expected, property values are increasing with the current revaluation.
Commercial values are leading the way. Since the last revaluation in 2011, commercial values are up nearly three times as much as residential values.
A Bigger Piece of the Tax Base
The Mecklenburg County Assessor's office has reviewed about 10% of the commercial parcels, mostly in the northern part of the county. Not yet assessed are properties in uptown and SouthPark, where values are booming.
Assessed values for offices, apartments, retail stores, and other commercial property are up an average of 74% so far with the revaluation. If city and county budgets remain stable, a larger share of taxes will come from commercial property owners.
Officials are hoping the current revaluation runs more smoothly than the last reval. In 2011, real estate values were at their lowest levels from the Great Recession and many owners felt their property was over assessed. An estimated $7 million was spent for an outside firm to review the 2011 revaluation. After contested assessments were reviewed, the value of all property in the county increased by 11.6%.
In response to the taxpayer uproar, county officials took steps to hire more staff, create a permanent division for revaluations, and overhaul the Board of Equalization and Review.
For this year's revaluation, the county commissioned an independent "income-producing market study" to help determine if commercial assessments are trending accurately.
Another Round of Appeals Anticipated
Officials expect tens of thousands of appeals after valuation notices go out simply because values have increased so dramatically since 2011. There are cases of properties selling for twice their assessed value.
The new assessments are scheduled to be mailed this December. The city of Charlotte and Mecklenburg County will set tax rates in the summer of 2019.