Property Tax Appeals
North Carolina law requires each county to determine the “real value” of property located in the county at least every eight years. The “real value” of income-producing business and commercial property is the income that the property generates. In our experience, counties frequently fail to valuate business or commercial property properly because they base their valuations on replacement value or sales of comparable properties rather than on the income that the property generates. In several instances we have obtained reductions in the evaluations of commercial and business properties by requiring counties to base the evaluations on the proper criteria.
If you think your income-producing property has been substantially overvalued, you may be correct. You have the right to appeal that value to the county’s Board of Equalization and Review and, if you are still not satisfied, to the North Carolina Property Tax Commission.
North Carolina law also provides exemptions for certain charitable uses and reduced valuation for land used for certain agricultural, forestry and horticultural purposes. Some counties are refusing to continue these exemptions or reduced valuations.
The same appeal rights are available for residential property, but residential appraisals are not in error as frequently as income-producing property valuations.
If you think your property has been overvalued or has improperly refused an exemption, take full advantage of the appeal procedures which are available to you. If you wish to seek assistance from an attorney, we would be happy to talk with you. Ed Gaskins, our managing partner, has represented commercial and residential owners in six counties in appealing overstated valuations and denied exemptions.