Skyrocketing property values in Jackson County are prompting commissioners to ask state lawmakers to change the way land values are determined.

Commissioners unanimously passed a resolution on May 5 asking the state to overhaul the North Carolina Machinery Act, legislation adopted in 1937 that sets guidelines for counties to determine property values.

Specifically, the county is asking the state to develop a new method for determining the appraised value of residential properties other than the current fair market value method. This bases the value of a property on sales of similar properties in the area, meaning a new development can drive up the value of a home — and the tax burden — on citizens who have no intention of ever selling.

“There’s very little we can do about property values,” said Commissioner Tom Massie, who proposed the resolution. “Everything is laid out in the Machinery Act. I think we need to fix the property value system in North Carolina.”

All properties in Jackson County — and throughout the state — are appraised based on fair market value. The tax office used 8,500 parcels of land to determine the market value for land in the revaluation that took effect in March. Tax workers used a formula to set the value to each piece of land or home.

“It depends on the market and what’s going on around you,” said Jackson County Tax Assessor Bobby McMahan.

Jackson saw an average increase in property values of about 68 percent. The recent spike in land value, officials say, was caused by the tremendous growth rate in the real estate market in 2005 and 2006.

Landowners on the coast are also seeing a hike in property values. Homeowners in New Hanover County, where the city of Wilmington is located, saw average increases of about 70 percent in land values during a county revaluation last year.

Massie says landowners in the mountains and the coast need some relief. He hopes the resolution will cause the General Assembly to form a joint study committee to consider possible alternatives to the wording of the Machinery Act.

“This is an issue that needs to be addressed, and I am going to do everything I can to get some movement in the General Assembly,” said Massie.

The county has already mailed the resolution to state offices, and he plans to speak on the issue at the next Southwestern Commission meeting on May 19.

McMahan commended commissioners on their recent move.

“It’s ambitious and I’m glad they stepped up to take on this challenge,” he said.

McMahan agrees with Massie and says the Machinery Acts needs to be re-examined to address issues such as the gifting of family lots.

“There are many families in Jackson County that just want to pass their land onto their children and don’t want to sell it,” he said. “There needs to be some alternative in place so that families can give the land and not be subjected to high property taxes.”

A long process

Massie hopes that state lawmakers will take action on the Machinery Act in the short session, which reconvened on May 13.

However, he knows it may take several years before any progress is made.

“This is an educational situation,” he said. “There is going to be a lot of discussion on what the problem is and why it needs to be changed,” he said.