NCGS 105-286 & 105-283 ● Requires Counties to Establish market values ● Value must be at or near 100% of current market value ● Utility companies requires.

NCGS 105-286 & 105-283NCGS 105-286 & 105-283

●● Requires Counties to Requires Counties to

Establish market valuesEstablish market values

●●Value must be at or Value must be at or near 100% of current near 100% of current market valuemarket value

● ● Utility companies requires Utility companies requires values to be between 90-100% values to be between 90-100% of market valuesof market values

● ● To reflect changes in To reflect changes in the market conditionsthe market conditions

Appraisal ProcessAppraisal Process• Collect & Review SalesCollect & Review Sales

• Route all 369 County Maps Route all 369 County Maps

• Map Sales From 2013 & 2014Map Sales From 2013 & 2014

• Analyze Construction CostAnalyze Construction Cost

• Develop Land Pricing ModelDevelop Land Pricing Model

• Develop Schedule of ValuesDevelop Schedule of Values

• Apply Schedule of Values to PropertiesApply Schedule of Values to Properties

Appraisal Process Continued

• Visit Properties• Review Sales to Comparable Properties• Identify Any Areas of Concern• Correct any Concern Areas• Send Notice of Value to Property Owner• Receive Any Informal Appeals and Review• Send Notice of Change• Begin Taking Formal Appeals to Board of Equalization• Set Hearing Dates and Times• After all Hearings send Notice of Change from Board of E&R• Property Owners then have 30 Days to Appeal to Property Tax

Commission in Raleigh, NC

Comparable Sales Approach: Subject property is compared with similar properties that have recently sold.

Income Approach: This approach uses income derived from similar properties in the same area. Income is not the value that individual business generate but what similar income producing properties will produce. An Example would be that all Two Bedroom apartments rent for $500 monthly in a given location thus the value of a 20 unit apartment can be determined.

Cost Approach: Construction cost less depreciation

THREE APPROACHES TO VALUE

MARKET VALUE

Market value is the most probable selling price that a property will bring in a competitive and open market with both the buyer and seller being motivated and well informed.

Transactions resulting from auctionsShort sales

Some Estate salesBank liquidation sales

ForeclosuresFamily or associates sales

MARKET VALUE IS NOT

The most obvious is an addition or remodeling of a structure.

Supply and Demand in a particular type of property.

The local economy and the factors that determine its stability.

Cost of replacing or building similar structures.

County’s Growth Rate Has Led WNC For Past Twenty Years

County Leads WNC In Sales Growth

Population Is Expected To Continue To Rise 1980 1990 2000 2020

1980

20000

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Population Growth

1980

1990

2000

2020

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

1991 1999 2001 2014

1991199920012014

REAL ESTATE MARKET INDICATORS

REAL ESTATE SALES2010-2014

EXCLUSIVE HOME SALES

REAL ESTATE MARKET ACTIVITYCode 2014 2013 2012 2011 2010A - TWO OR MORE PARCELS 190 215 175 155 192 B - OTHER IMPROVMENTS INCLUDED 5 2 - - 9 C - REVENUE STAMPS < $6.00 ($3,000) 1,023 1,196 1,143 942 1,014 D - DATE OUT OF RANGE - - - - - E - RELATIVE OR BUSINESS 74 42 40 218 57 F - CONVEYING INTEREST ONLY 7 7 3 4 5 G - LIFE ESTATE OR OTHER INTEREST 18 3 1 1 5 H - GRANTOR POSSESSION - - - - - I - GOVT, LENDING, UTILITY 94 126 158 317 107 IC - IMP COMM 16 9 11 6 9 IR - IMP RESIDENTAIL 411 461 325 257 236 J - TAX EXEMPT 6 12 2 9 - K - CHURCH OR SCHOOL 2 2 7 4 3 M - IN MORE THAN ONE COUNTY - 3 - - 2 MR - MANF HOME 64 53 48 34 41 O - INCLUDES PERSONAL PROPERTY 2 2 - 2 5 P - FORCED SALE OR AUCTION 45 57 52 15 2 R - TRADE OR EXCHANGE - - - 1 - TC - TOWNHOUSE/CONDO 24 23 18 7 10 VC - VACANT COMMERCIAL 1 8 2 2 2 VR - VACANT RESIDENTIAL 163 190 92 120 148 X - OTHER 25 57 112 91 72 TOTAL 2,170 2,468 2,189 2,185 1,919

VALID 679 744 496 426 446 INVALID 1,491 1,724 1,693 1,759 1,473

VALID SALES 2014 2013 2012 2011 2010SALES > $500,000 63 52 49 34 29 SALES > $1,000,000 25 11 15 6 14

2014 TAX VALUE OF ALL PROPERTY $ 9,348,950,012

2014 TAX VALUE x .00279

TOTAL TAXES $26,083,570

REVENUE NEUTRAL TAX RATE

2015 TOTAL REAL ESTATE VALUE $ 7,733,733,213

2015 ESTIMATE PUBLIC SERVICE $ 130,000,000

2015 ESTIMATE MOTOR VEHICLES $ 271,595,000

2015 SUB TOTAL $ 8,135,328,213

LESS APPEALS’ VALUE $ (100,000,000)

LESS HOMESTEAD EXCLUSSION $ ( 70,000,000)

NET TOTAL NEW TAX VALUE $ 7,965,328,213

ROUND TO $ 7,965,000,000

$ 7,965,000,000

OVERALL DECREASE OF VALUE: 14.80%

$7,965,000,000 / 9,348,950,012

REAL ESTATE ONLY DECREASED 14.52 % $ 7,563,733,213 / 8,848,875,468

TAX REVENUE NEEDED/TOTAL VALUE

$26,083,570 / $7,965,000,000 = .003274

ROUNDED TO $ .0033

2007 VALUES & TAXES COMPARED TO

2015 VALUES & TAXES

PIN # 7448-58-3589 HOUSE & 87 ACRES

2007 Value $1,248,3102014 Tax Rate .00279Base Tax $ 3,482

2015 Value $935,160Est. Tax Rate .0033 Base Tax $3,086

Savings $ 396Decrease of 11.4%

2007 Value $ 316,2702014 Tax Rate .00279

Base Tax $ 882

2015 Value $ 260,500Est. Tax Rate .0033

Base Tax $ 859Savings $ 23Decrease of 2.6%

PIN # 7438986076

PIN # 7438-97-6569

2007 Value $ 148,0402014 Tax Rate .00279

Base Tax $ 413

2015 Value $ 100,880Est. Tax Rate .0033

Base Tax $333Savings $ 80Decrease of 20%

PIN # 7530-93-7003

2007 Value $1,166,770

2014 Tax Rate .00279Base Tax $3,255

2015 Value $ 907,620Est. Tax Rate .0033Base Tax $2,995Savings $ 260Decrease of 8%

PIN # 6580-49-7864HOUSE & 17.43 ACRES

2007 Value $522,0402014 Tax Rate .00279

Base Tax $1,456

2015 Value $396,170Est. Tax Rate .0033Base Tax $1,307

Savings $149Decrease of 10.4%

PIN # 7540-41-2457

2007 Value $ 182,7802014 Tax Rate .00279

Base Tax $ 510

2015 Value $ 220,000Est. Tax Rate .0033Base Tax $ 726

Increase of $ 216Increase of 42.35%

PIN # 7540-52-3321

2007 Value $1,002,7802014 Tax Rate .00279

Base Tax $2,798

2015 Value $1,846,810Est Tax Rate .0033Base Tax $ 6095

Increase of $ 3,297Increase of 118%

PIN # 6581-70-0263

2007 Value $ 115,5102014 Tax Rate .00279

Base Tax $322

2015 Value $111,450Est. Tax Rate .0033

Base Tax $368Increase $46Increase of 14.3%

PIN #6581-41-8759

2007 Value $127,9902014 Tax Rate .00279

Base Tax $357

2015 Value $127,730Est. Tax Rate .0033

Base Tax $421Increase $64

Increase of 18%

PIN # 7550-23-4331

2007 Value $ 14,155,1002014 Tax Rate .00279

2014 Base Tax $ 39,493

2015 Value $ 10,190,130Est. Tax Rate $ .0033

Base Tax $ 33,628Decrease $ 5,865

Decrease of 14.85%

Reassessments are volatile and established procedures must be followed.

The established appeal process outlined by the Machinery Act must be adhered to.

Equality between similar properties must be one of the top priorities.

Properties will not increase at the same percentage countywide.

Location is still very much a factor.

FINALLY

Things to Remember

Values must be set at 100% of Market Value.

Value may or may not be what the owner has invested in the property.

Different classes of properties change at different rates.

Location or demand on certain types of properties will affect values differently depending on the market.

Percentage of increase is not a reason for an appeal.

Burden of proof is on taxpayer to show that property is excessively overvalued.

NC courts have ruled that tax assessments are assumed to be correct and are accepted until proof is provided to the contrary.

Summary of Important Information

Values will be finalized by December 2014 Notices will be mailed in January 2015 Appeal information will accompany the notice of value Informal appeals must be a written appeal supported with

documentation of value Board of Equalizations starts April 2015

2015 VALUATION BY TOWNSHIPSTWP TOTAL PCLS 2007 Taxable 2015 Taxable $ DIFF % CHG

FRANKLIN 8,282 1,103,872,780$ 924,939,240$ (178,933,540)$ -16.21%MILLSHOAL 3,704 389,495,910$ 317,270,230$ (72,225,680)$ -18.54%

ELLIJAY 3,203 370,791,250$ 300,883,180$ (69,908,070)$ -18.85%SUGARFORK 1,518 221,051,440$ 174,230,050$ (46,821,390)$ -21.18%HIGHLANDS 3,999 2,051,601,730$ 1,787,614,120$ (263,987,610)$ -12.87%

FLATS 1,185 321,882,710$ 237,907,640$ (83,975,070)$ -26.09%SMITHBRIDGE 4,480 578,994,680$ 459,072,710$ (119,921,970)$ -20.71%

CARTOOGECHAYE 3,146 442,611,210$ 370,669,510$ (71,941,700)$ -16.25%NANTAHALA 2,476 433,406,203$ 342,897,923$ (90,508,280)$ -20.88%

BURNINGTOWN 1,279 161,007,280$ 122,791,970$ (38,215,310)$ -23.74%COWEE 3,722 439,669,325$ 328,730,700$ (110,938,625)$ -25.23%

FRANKLIN CITY 2,527 628,336,480$ 618,201,480$ (10,135,000)$ -1.61%HIGHLANDS CITY 2,927 1,800,491,780$ 1,746,013,960$ (54,477,820)$ -3.03%

42,448 8,943,212,778$ 7,731,222,713$ (1,211,990,065)$ -13.55%

PROJECTED 2007 2015 LOSSTAX BASE 8,946,116,838$ 7,733,733,213$ -13.55%TAX RATE 0.00279 0.00323 1,212,383,625$ TAX $ 24,959,666$

TrendFRANKLIN 1,103,481,410 -16.21% (178,870,100.43) MILLSHOAL 390,149,280 -18.54% (72,346,836.84) ELLIJAY 370,413,680 -18.85% (69,836,883.88) SUGARFORK 220,966,150 -21.18% (46,803,324.54) HIGHLANDS 2,054,187,930 -12.87% (264,320,386.46) FLATS 321,887,220 -26.09% (83,976,246.60) SMITHBRIDGE 578,940,960 -20.71% (119,910,843.46) CARTOOGECHAYE 442,539,120 -16.25% (71,929,982.54) NANTAHALA 432,822,513 -20.88% (90,386,387.93) BURNINGTOWN 161,871,270 -23.74% (38,420,379.27) COWEE 439,877,355 -25.23% (110,991,115.73) FRANKLIN CITY 628,291,760 -1.61% (10,134,278.67) HIGHLANDS CITY 1,800,688,190 -3.03% (54,483,762.81)

8,946,116,838 -13.55% (1,212,383,625.12)

MACON COUNTY, NORTH CAROLINA NOTICE OF PROPERTY REVALUATION

THIS IS NOT A BILL MACON COUNTY TAX ADMINISTATOR 5 W MAIN STREET FRANKLIN, NC 28734 RETURN SERVICE REQUESTED

PIN #: Acreage/Lot: Date of Notice

Market Value: Deferred Value: Net Total Value:

YOU ARE HEREBY NOTIFED THAT AS OF 01/01/2015 YOUR ASSESSED VALUE HAS BEEN CHANGED DUE TO THE 2015 COUNTY WIDE REVALUATION OF ALL REAL PROPERTY IN MACON COUNTY.

DETACH ONLY IF YOU WISH TO APPEAL THE VALUE OF THIS NOTICE. PLEASE RETAIN TOP OF FORM FOR YOUR RECORDS

MACON COUNTY INFORMAL REVIEW FORM If you wish to appeal the value of this notice. You must complete this form in its entirety and return by mail within 30 days of the date of this notice. Macon County Revaluation personnel will review your assessed value based on the information provided on this form. A change in value will be considered if the owner can demonstrate that the assessed value is more than market value as of 01/01/2015, or is inconsistent with the value of similar property. APPEALS WILL NOT BE TAKEN BY TELEPHONE

PIN # DATE OF NOTICE PROPERTY DESC MARKET VALUE DEFERRED VALUE NET VALUE

A review of assessed values may result in assessments being: (1) left unchanged, (2) reduced, or (3) increased in value. PLEASE INDICATE WHICH OF THE FOLLOWING APPLIES TO YOUR PROPERTY (CHECK ONE OR BOTH) _____ The subject property is appraised at more than it’s fair market value. _____ The subject property is not equally appraised as compared with similar properties. Please list comparable properties on back. What in your opinion is the FAIR MARKET VALUE as of 01/01/2015? $ Is your opinion of market value (1)____ Personal Judgment, (2) ____ Recent Appraisal, (3) ____ Comparable Sales, (4) ____ Income/Expense Data, (5) Other What was the purchase date and price (If purchased since 1/1/2013)? ____/____/______ $ Describe any major building or remodeling and the cost involved (since 1/1/2013) $ If listed for sale in the past two years, please complete the following: List Price $ Name of Broker/Agent Dates of Listing Period (From & To) PLEASE ATTACH COPIES OF INFORMATION OR EVIDENCE SUPPORTING YOUR OPINION OF VALUE. Under penalties prescribed by law, I hereby affirm that to the best of my knowledge and belief that the information submitted on this appeal form, including accompanying statements and other information is true and correct. SIGNATURE OF OWNER DATE DAYTIME TELEPHONE

(If agent or representative of owner, please attach notarized Power of Attorney) All requests must be made within 30 days of the date of this notice.

RETURN THIS FORM ONLY IF YOU WISH TO APPEAL THE ASSESSED VALUE. STANDARDS FOR APPRAISAL AND ASSESSMENT: North Carolina General Statute 105-283 Uniform Appraisal Standards. All property, real and personal, shall as far as practicable be appraised or valued at it’s true value in money… the words “true value” shall be interpreted as meaning market value, that is, the price estimated in terms of money at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of all the uses to which the property is adapted and for which it is capable of being used. INFORMAL REVIEW PROCESS: If you wish to appeal the value of this notice. You must complete, in entirety, the Macon County Informal Review Form and return it to the Macon County Revaluation office by mail or drop off (within 30 days of the date of this notice). Macon County Revaluation personnel will review your assessed value based on the information provided on this form. A change in value will be considered if the owner can demonstrate that the assessed value is more than market value as of 01/01/2015, or is inconsistent with the value of similar property. You will receive written notice of the results of the informal review. BOARD OF EQUALIZATION AND REVIEW: If you disagree with the results of your Informal Review, you have a right to file a formal appeal to the Board of Equalization and Review. You may request and appeal any time prior to the adjournment of the Board of Equalization and Review or within 15 days of your last notice of Assessed Value. All requests for appeal must be made in writing and on the proper form. Appeal forms are available at the Macon County Administrator’s Office. Actual time and dates will be advertised in the local newspaper. The first meeting of the Board of Equalization and Review must be held no earlier than the first Monday in April and no later than the first Monday in May. Market Value is not:

Actual or Historic Cost Aesthetic Value Bank Sale Condemnation Value Construction Cost Depreciated Asset or Book Value Forced Sale/Foreclosure Inheritance Value Insured Value Liquidation Value or Salvage Value Present-Use Value Short Sale

GROUNDS FOR REVIEW OR APPEAL CANNOT INCLUDE THE FOLLOWING:

The percentage of increase over the previous reappraisal Your financial ability to pay the anticipated tax

COMPARABLE PROPERTIES:

COMP #1 COMP #2 COMP #3

Owner Name

Owner Name

Owner Name

PIN # PIN # PIN #

Sale Date Sale Date Sale Date

Sale Price Sale Price

Sale Price

Sq. Ft. Sq. Ft. Sq. Ft.

Acreage Acreage Acreage

Remarks: Remarks: Remarks:

*IF YOU HAD NEW CONSTRUCTION ON YOUR PROPERTY IN 2014 YOU MAY RECEIVE ANOTHER NOTICE.

*** MACON COUNTY IS NOW ONLINE ***

LOG ON TO: www.maconnctax.com CLICK ON Land Records Search to search properties

IN-HOUSE REAPPRAISAL COST• $355,000 over 8 years

• Less Discoveries $133,000

• 43,500 Real Estate Parcels

• $ 222,000/43500= $ 5.10 per parcel

• County savings of $21.84 parcel

• Total Savings for 2015 $ 1,083,150

• Total savings to Macon County since 1999

QUESTIONS