How to Pay Your Buncombe County Property Tax Bill: A Step-by-Step Guide

How is Property valued?

The Property Tax Division of the Department of Revenue annually adopts a schedule of values, standards and rules to be used in the valuation of motor vehicles to ensure equitable statewide valuations. Ownership, location and taxability of a registered motor vehicle is determined annually as of the date on which the vehicles current registration is renewed. Value for a registered motor vehicle is determined based on the date the registration expires.

• For registrations expiring January 1 through August 31, the value is determined as of January 1 of the current year.
• For registrations expiring September 1 through December 31, the value is determined as of January 1 of the following year.

Business personal property, such as computer/office equipment, machinery, farm equipment, etc. is valued on a cost basis using “Trending Schedules” developed by the NC Department of Revenue. Trending schedules represent current, new replacement cost less depreciation.

Every four (4) years, the Buncombe County Tax Department completes a reappraisal of all real property in the County. This process is called “Reappraisal.” The purpose of reappraisal is to comply with North Carolina General Statutes which require property to be valued, or appraised, at its current market value at least every eight (8) years and to insure all taxpayers are taxed fairly and equitably. Values are placed on real property using either one or a combination of the following appraisal approaches:

• The sales comparison or market approach. This approach compares the selling prices of similar properties and places a value on those properties based on actual selling prices. This approach is the most accurate when there are a number of sales occurring.
• Cost approach. Values are determined on what it would cost to replace a similar property at current building costs minus depreciation based on a variety of factors and the age of the property. This approach is best used for unique properties or newer construction.
• Income approach. This approach is used primarily on income producing properties such as apartment buildings or business offices. Revenues are analyzed to determine a net operating income. This income is then capitalized to determine a value for the property.

Reappraisal is a systematic, in depth process using a computer aided mass appraisal system to reappraise or reassess all real property in the County to the current market value. (Appraised value and assessed value can be used interchangeably in North Carolina because property is required to be assessed at 100% percent of its appraised value.) The real estate market is one of constant change caused by the freedom we have to buy and sell property. This change can vary greatly depending on a propertys size, type and location. This can create an inequitable situation in the level of assessment among owners of property and inequity among differing types of property.

The longer this situation exists, the more unjust it becomes. The end result is an unfair tax burden on those properties which have an assessed value close to the actual market value compared to those properties whose assessed value is well below market value. The relationship between assessed, or tax value, and market value is called the sales/assessment ratio.

Additionally, utility companies are taxed based on the overall ratio between assessed value and market value. If the countywide sales/assessment ratio is below is below 90% percent, then the utilities are taxed at only 90% percent of value rather than 100% percent. The resulting lost revenues from the utility companies shifts more of the tax burden to local home and business owners. Ultimately, the purpose of reappraisal is to have each property carry its appropriate share of the expense to provide County services to its residents while allowing the lowest possible tax rate.

A countywide reappraisal is an enormous and complex task. We are fortunate to have a qualified and knowledgeable in-house appraisal team in Buncombe County. They are all residents of the local area who are very familiar with property in the County. They have made every effort to consider all the many factors involved in determining property values through the completion of the reappraisal process. Field inspections are conducted, sales files are developed and analyzed and market trends continually monitored. Contacts are made with property owners, local realtors, building contractors, building suppliers and home lending institutions, all for the purpose of being as knowledgeable as possible about property values.

Of course, no matter how thorough and fair a reappraisal may be, there are still instances when only the property owner has all the information necessary for an accurate appraisal. That is why there is a relatively easy appeal process. First, an “informal appeal form” is provided for your initial appeal. The form must be completed and returned to the Tax Department prior to April of the year in which the appeal is being made. Please include any documentation, i.e. photographs, sales records, appraisals, you may have. We will thoroughly review and consider your appeal. If you have marked on the appeal form that you want a face to face meeting, we will contact you to schedule a time convenient for you. Remember, you can appeal only property values, not property taxes, through this process.

Adjustments to values will be made based on a reanalysis of appealed property. Once you are notified of the results of the reanalysis, you have the option of accepting the value or appealing further. The next step in the appeal process is to appeal to the “Board of Equalization and Review.” The Board of Equalization and Review is a special board appointed by the County Commissioners and consists of long time Buncombe County residents who have a solid real estate or business background and are quite familiar with local real estate values.

If you are still dissatisfied with your property values, the next step is to appeal to the North Carolina Property Tax Commission in Raleigh. Very rarely is this step required. From the Property Tax Commission, you may appeal to the North Carolina Court of Appeals and finally to the North Carolina Supreme Court. Again, these appeals are very rare since every effort is made by the Tax Department to resolve our issues locally among people who are most familiar with property values in Buncombe County.

Yes, under certain circumstances, you may be eligible for reduced taxes or participation in other special programs if you meet the requirements specified in the North Carolina General Statutes. A brief description and the basic requirements for each are described under this section.

What is taxable Property?

Personal property includes unlicensed motor vehicles, boats, campers, permanently tagged trailers, single and double-wide manufactured homes not on a permanent foundation and airplanes. Anyone who owns any of these must list them with the tax department during the month of January each year. (Manufactured homes located on land owned by the owner of the mobile home will be considered real property.) If a property tax listing form is not received in the mail, please call the tax department to request one, (828) 250-4910.

Please note: A 10% percent late list penalty will be charged for failure to list the required property with the tax department before the end of January.

Business personal property includes but is not limited to machinery, computer/office equipment, airplanes, unlicensed vehicles, leasehold improvements, leased equipment, supplies, furniture, fixtures, farm equipment, etc. Listing must be submitted during the month of January of each year to avoid a 10% percent late listing penalty. An extension may be granted until March 15th if the request is made in writing and is postmarked by January 31st.

Listing forms are mailed to taxpayers in early January each year. If you have business personal property but did not receive a listing form please contact the tax department at (828) 250-4930.

Real property includes land and structures or improvements on the land, this includes doublewide manufactured homes on a permanent foundation and other manufactured homes located on land owned by the owner of the manufactured home.

Buncombe County employs a system of automatically listing real property by coordinating efforts with other county departments such as Planning, Permits and Inspections, Land Records and Register of Deeds. The tax department will attempt to automatically list all improvements for which a permit was granted. Assurance of any new construction being listed is ultimately the responsibility of the taxpayer and must be done before the end of January each year.

Ways to Pay Your Taxes in Buncombe County