Review and Appeal in a Revaluation Year

1. Review and Appeal in a Revaluation Year Shea R. Denning, School of Government

2. Giving the taxpayer notice • Notice of assessed value of real property • Ideally, before January 1 in revaluation year • Must provide before Board of E&R convenes • GS 105-296(i) • Notice of assessed value of personal property • Must provide on bill if not before (GS 105-317.1) • Owner may appeal within 30 days of date of notice • Notice of granting/denial of exemption/exclusion • Machinery Act does not specify time • Must be before Board of E & R convenes • Most counties provide notice within a few weeks of application

3. Appeal of Real Property Values • Assessor has authority to change assessments until Board of E&R convenes • Most counties employ an informal appeal process • Once Board of E&R convenes, authority transfers • Board of E&R must convene no earlier than the first Monday in April and no later than first Monday in May • Shall complete duties in 3 weeks, unless it needs more time • In revaluation years, must adjourn by December 1 • In nonrevaluation years, must adjourn by July 1 • New appeals cannot be filed after adjournment

4. Board of E&R After Adjournment • After adjournment, Board can continue to meet to decide • Appeals already pending • Petitions to compromise discoveries • Personal property appeals • Appeals from valuation changes made by board • Appeals relating to discovered property • Motor vehicle appeals • Appeals relating to audits of exempted or excluded real property

5. Who may appeal? • Board of E&R hears appeals from any taxpayer • who owns or controls property taxable in the county • with respect to the listing or appraisal of the taxpayer’s property or the property of others • A taxpayer may only appeal the underassessment of another person’s property • May require two hearings, because owner of property has right to appeal from value change • Taxpayer may file written appeal • Or appear in person at board during a session

6. Proceedings before Board of E&R • County Assessor serves as clerk to the board • Must be present at all meetings and maintain accurate minutes • Board must deliberate in open session • Board has discretionary authority to examine witnesses and documents and place witnesses under oath • Board may subpoena witnesses and documents • Board may hire expert appraisers • Board must enter into minutes any order reducing, increasing, or confirming an appraisal or listing or removing property from tax list • Board must notify taxpayer by mail as to action taken on appeal no later than 30 days after board’s adjournment

7. Shift of control: Bd. of Commissioners • After Board of E & R adjourns, board of county commissioners has sole authority to authorize changes to abstracts and tax records • May authorize changes (1-5 can be delegated to assessor) • Ordered by the PTC • To add valuation certified or corrected by DOR • Correct names and descriptions • Correct appraisals, assessments and tax amounts resulting from clerical or mathematical errors • Add discovered property • To appraise or reappraise property when the assessor reports that since adjournment of the of board of E&R, facts have come to her attention that warrant changing the appraisal of real property

8. What if taxpayer wants to appeal? • If county has a separate board of E&R, county may, by resolution, provide for appeal to county commissioners • Otherwise, appeal is to Property Tax Commission • Only a taxpayer, not the county, is authorized to appeal a decision of the board of E&R • Taxpayer must file notice of appeal with the PTC within 30 days after board mails notice of decision • Must send a copy of the notice of appeal to the county assessor

9. Appeals to the PTC • Joint owners of property may file separate or joint appeals • Taxpayers may file a single appeal to contest the listing or valuation of more than one item of personal property or tract of real property

10. Appeals to the PTC • PTC must provide for hearing before one or more representatives of the commission (commissioner or DOR employee) or before full commission • PTC not bound by findings and conclusions of the county board • PTC hearing is “de novo” • Based solely on record before PTC • PTC not required to consider evidence of a factor affecting the value of a taxpayer’s property unless the taxpayer alerts the county assessor of the factor within the tax year, alerts the board of E&R or states the factor in application for appeal to PTC

11. PTC Procedures • Taxpayer must appear in person or be represented by attorney • Individuals may represent themselves • Corporate taxpayers and the county must be represented by an attorney • PTC may subpoena witnesses and documents • Rules of Evidence apply • PTC must make findings of fact and conclusions of law • Certified copy of order must be delivered to appellant and to clerk of county board of commissioners

12. Reductions in Value • If PTC reduces value or removes property from tax lists, and taxpayer is owed a refund, taxpayer is entitled to interest on overpayment • Interest is at the rate established pursuant to GS 105-241.1 • Interest accrues from date taxes were paid or the date taxes were delinquent, whichever is later

13. Authority to settle • Since receiving the notice that his warehouse was valued at $1 million in Wayne County’s 2007 revaluation, John Anderson, has insisted that it is “too high.” • He appealed the valuation to the Board of E&R, which affirmed the $1 million value. • John has not had the property appraised; he simply insists the value is “too high.” • Last month, he filed an appeal with the PTC. • Last week, John offered to withdraw the appeal if the Wayne County assessor reduced the value to $900,000. • The Wayne County board of commissioners has asked whether it can reduce the value upon a promise by John that he will withdraw the appeal. • Answer: No. See Cleveland County Association for Government by the People v. Cleveland County Board of Commissioners, 142 F.3d 468 (D.C. Cir. 1998) (holding that an NC county could not enter into a consent decree that circumvented state elections law).

14. Authority to Settle • Assume the same basic facts, but assume that John has obtained two fee appraisals; one valuing his property at $890,00, and one at $900,000. • Michael Brown from DOR has reviewed the appeal with the county assessor, the county attorney, and John, who is representing himself. • Based on these discussions, the parties agree that the market value of the warehouse is $900,000. • This agreement is prepared as a consent order signed by the chairperson of the PTC. • What is the effect of the consent order? The value is reduced; the excess taxes must be refunded/released.