Businesses that own real estate in Mecklenburg County should be on the lookout for an increase in their tax bills next year. Real estate is often a company’s most expensive asset, and annual property taxes can be a hefty sum.
Every four years, Mecklenburg County conducts a revaluation of all real property in the county. Through the revaluation process, the assessment of every property is updated to its current market value. In Mecklenburg County, the new effective date of the market value will be January 1, 2023. With rising sales prices in recent years, property owners will likely see significant increases in their assessments compared to the previous revaluation in 2019.
Here is what you need to know about the 2023 revaluation.
What Is the Revaluation Process?
County assessors endeavor to visit and observe all properties within the County to verify and update the County’s property records. The County adopts a Schedule of Values that dictates how each property type must be valued, typically by considering sales, costs, and income data. The County then applies the compiled data to each property, following their schedule of values, to reach a final opinion of value and assessment.
Will the Revaluation Affect Property Taxes?
The revaluations determine the county’s opinion of the market value: the price estimated in terms of money in which the property would sell in normal conditions with a willing buyer and seller. An increase in your assessment doesn’t guarantee an increase in your property taxes; however, that is common.
What if your New Assessment is High?
A property owner has the right to appeal their assessment. The first step is an appeal directly to Mecklenburg County. Mecklenburg County offers two appeal options: (1) an informal appeal where an appraiser takes a closer look at the property; or (2) a formal appeal to the County’s Board of Equalization and Review. Owners dissatisfied with their informal appeal can continue to the formal appeal process.
the County appeal process is complete, a property owner has the right to continue their appeal to the North Carolina Property Tax Commission for further consideration.
- Information Review: The property owner and an assessor review the property record together to determine if the information is accurate. If an error has been made, the revaluation will be adjusted without going through the formal appeal process.
- Formal Appeal: Property owners have the right to file an appeal if they feel the assessment is not an accurate estimate of the property’s selling value at the time of January 1, 2023.
Parker Poe has represented property owners throughout North Carolina on handled hundreds of appeals and have learned a variety of key points for clients. The first lesson is to pay attention to the strict deadlines that must be followed in the appeal process.
- January 1, 2023: Countywide revaluation effective date
- January 23, 2023: Notice of January 2023 real estate assessed value mailed
- May 25, 2023: Deadline to submit an appeal to the Board of Equalization and Review
- July 2023: Tax bill mailed
In addition, property owners may consider retaining legal counsel to guide them through the process to seek an adjustment to their real estate market value for their tax assessment. For more information, please contact us or your regular Parker Poe attorney.