At the Mecklenburg County District 1 Property Tax Revaluation meeting held Tuesday night, the county’s tax assessor’s office provided details about how their year-long study of area property values will result in an increase in assessed property tax values for most residents in Northern Mecklenburg County including Mountain Island Lake, Cornelius, Davidson and Huntersville despite the recent decline in market prices.
The appraiser for the assessor’s office, Chuck Hicks, explained that while market prices are lower now than in 2007 due to the subprime crisis, they are actually higher than what homes were selling for in 2003, when the area had its last property tax revaluation. More specifically, the Lake Norman area has seen a 26% increase in median home sales prices from 2003 to 2009. But, this has not been the case county-wide. They assured that county appraisers have taken the foreclosure crisis in to account when compiling their 2010 sales data used to determine the new tax values. So how did they do it?
The tax assessors office has calculated a median Assessment/Sale Ratio for each neighborhood based on recent actual sales prices. The maps below illustrate these ratio’s county-wide and for some neighborhoods in District 1:
- In neighborhoods where sales prices have increased since 2003, the ratio is below 1.00
- Where sales have remained unchanged since 2003, the ratio stays near 1.00
- Where sales prices have decreased since 2003, the ratio is greater than 1.00
What you really want to know…How does this impact my property taxes?
The county’s revaluation presentation explains that neighborhoods with the lowest current assessment ratios will see increases in tax assessment in the 2011 revaluation, while neighborhoods with higher current assessment ratios will see less change, or possible reductions in taxes assessed from the revaluation. But keep in mind that Commissioners will also be setting a new tax rate in mid-June. The tax rate – which is currently computed per $100 of appraised property value – determines how much property tax is actually assessed. So the amount of increase or decrease in property taxes owed will likely be unknown until then…stay tuned!!
In case you missed the District 1 meeting, click here to watch the video now!
or check out Mecklenburg County’s explanation video here: