Jackson leaders will likely pushback a countywide property revaluation from next year to 2016 following a strong recommendation by their tax man.
“Truthfully, if you want this thing done and you want it done right, we don’t have an adequate timeline,” Tax Assessor Bobby McMahan told commissioners last week. “The more time we have, the better quality our work is going to be.”
Commissioners had instructed McMahan and his staff to move forward with a revaluation in 2013, which was already one year later than originally planned.
In a revaluation, every home, lot and tract of land is assigned a new property value to reflect the going real estate market — a value that in turn dictates how much people pay in property taxes.
Several residents made a public appeal to commissioners earlier this month to delay the revaluation beyond 2013. Falling real estate prices for high-end homes means affluent property owners will see their taxes come down in a revaluation, and the burden would be redistributed to the county’s middle-class residents.
Most of the property tax burden is currently shouldered by property owners in Cashiers-Glenville area, dominated by high-end resorts and second- and third-homes. Delaying the revaluation means the county could continue could taxing these high-end properties at an inflated book value.
But that isn’t the reason the county is giving for the delay. McMahan said there simply is a lack of sales data — not enough homes and lots being bought and sold — for the county to know what the going rate is for property.
The drop in sales is staggering: there are 444 sales from the past three years that could be considered for the revaluation, noted Commissioner Mark Jones who is from the Cashiers-Glenville area. That, McMahan added, compares to nearly 8,000 property transactions during the last revaluation period.
“It just makes our position of trying to proceed less defensible,” Chairman Jack Debnam, a real estate agent in real life, said of the woeful sales numbers.
The lack of sales makes it difficult to set accurate values that Jackson County could defend in potentially costly legal appeals. Property owners who disagree with a county’s revaluation have the legal right to challenge on a state level. Counties must be able to prove how they arrived at property values by using data from actual sales.
“Would you say the big driver is the lack of sales?” Commissioner Doug Cody asked in reiteration of the shifting county position about when exactly to conduct a revaluation.
“That data is the most important thing you have to have,” McMahan said in reply.
“If postponed, what portion of your work would be in vain? How much of that would still be used?” Commissioner Charles Elders asked McMahan.
“None of it is in vain,” the tax assessor said in response. “You never truly quit, never totally stop working on revaluation.”
“And to do the job you should do, you really need this (extra) time,” Elders said. “You don’t need guess work?”
“Right, you don’t need to guess,” McMahan said in reply.
Tax Assessor Richard Lightner in neighboring Macon County successfully encouraged commissioners there to delay until 2015, the legal eight-year span allowable since the county’s last revaluation in 2007. He, too, cited likely indefensible legal action in his recommendation.
Haywood County, unlike counties farther to the west, moved forward with a revaluation last year after postponing it by just one year. Property values on a whole remained flat, although there was variation between types of property and neighborhood. Haywood does not have nearly the same volume of high-end second homes, however.
Swain County did a revaluation two years ago but tossed the results out. It will conduct a revaluation in 2014.