North Carolina law requires each county to determine for taxation 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. However, in our experience, counties frequently fail to valuate business or commercial property correctly because they base their valuations on replacement value or sales of comparable properties rather than on the income that the property generates. This can have the effect of substantially overvaluing income-producing property for property tax purposes. Everett Gaskins Hancock has successfully 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 have the right to appeal that value to the county’s Board of Equalization and Review and, if still not satisfied, 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 been 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 property owners in numerous counties across North Carolina in appealing overstated valuations and denied exemptions.