What is revaluation?
Revaluation is the process that matches your tax value with what your property is worth on the market at the time of the revaluation. It covers all residential and commercial land and structures, such as homes, apartments, and office buildings, stores and warehouses. It does not include what is known as “personal property,” such as cars, boats and airplanes. The values for those are adjusted annually.
Why do we do this?
State law requires revaluations at least once every eight years; the last revaluation in Sampson County became effective January 1, 2011.
What determines my value?
Property is appraised at “fair market value,” which is the most probable price a property would bring in a competitive and open market. Property values for revaluation are determined by comparing sales prices for similar properties, what it would cost to replace your property, the potential income for your property and many other factors.
Why appraise property?
An appraisal provides a basis for determining a property owner’s share of the taxes that support schools, roads, parks, public health programs, libraries, and police and fire protection. The amount of taxes you pay depends on both your property value and the tax rates set each year by elected county and city/town officials.
What’s the benefit?
This readjustment in values makes the County’s tax system more fair and equitable, because the values are based on what the property is worth on the open market. This ensures that all property owners are paying their fair share of taxes.
How is an appraisal done?
Sampson County contracts with an outside firm registered with the North Carolina Department of Revenue to conduct reappraisals of real property. The appraisers are required to visit each parcel to collect basic characteristics such as building dimensions, total square footage, type and quality of construction, type of heating and cooling, plumbing, age, condition, desirability, usefulness, etc. The firm will use the three (3) recognized valuation methods of the appraisal industry to determine value.
- Market Approach: Compares property to recent sales of similar properties
- Cost Approach: Determines current cost of replacing property
- Income Approach: Considers how much income the property could produce (commonly used for commercial properties)