New values reflect rapidly growing real estate market

Following the culmination of nearly two years of work by Wake County’s award-winning Tax Administration, hundreds of thousands of revaluation letters will begin arriving across the county this week. Property values for more than 425,000 properties were updated through a combination of field visits and in-office analysis, utilizing extensive data to equitably bring property values into alignment with fair market value as of January 1, 2024. During their presentation to the Board of Commissioners today, leaders were candid about the sticker shock some may feel opening their envelopes.

“The increase in values is unprecedented for Wake County, but we’re confident the updated assessed values reflect fair market value,” said Wake County Tax Administrator Marcus Kinrade, citing how the county’s continued growth, high housing demand and limited supply triggered rapidly increasing real estate values over the last four years. “This is not about increasing property taxes. This is about valuation equity and fairness. It’s about redistributing the property tax burden based on market value. Our target was 100% fair market value as of January 2024.”

By state law, counties must conduct revaluations of all real property, with Wake County conducting them on a four-year cycle, with the previous values set back on January 1, 2020. To give historical context to the county’s growth and value increases: in 1992, Wake County had 165,000 parcels of land, now, in 2024, there are more than 425,000. The 1992 real property tax base was $30 billion, it’s now estimated at $272.4 billion. The County’s total tax base, including residential and commercial properties, personal property and utility assets exceeds $307 billion.

Wake County remains a diverse county with a mix of urban, suburban and rural areas. Increases in values varied across the county. The highest overall percentage changes were in Wendell, Holly Springs and Knightdale. The largest increases in commercial values were driven by mini storage, industrial uses and apartments, with less growth in hotels and office space. The full revaluation results presentation can be viewed here.

Overall property value increase (land and structures):

• 53% for residential property
• 45% for commercial property
  • 51% combined increase for residential and commercial
     

Ultimately, the budget processes for the county and municipalities will drive what tax rates are adopted using these new property values. County and municipal elected officials aren’t expected to approve budgets until the June 2024 timeframe, leading up to the July 1 start of a new fiscal year. Currently, Wake County’s FY2024 property tax rate is 65.7 cents per $100 of property value. Based on the new overall values, the revenue neutral tax rate for FY2025 is estimated to be 46.33 cents per $100 of value. Revenue neutral is the rate that would bring in the same amount of money as the previous year’s budget, after an adjustment for average annual growth. Since the Wake County Board won’t approve a new budget for another five months, property owners should not try to calculate their July tax bills using the current tax rate. They can, however, see an estimate of what their upcoming tax obligation could be by using the county’s Revenue-Neutral Tax Calculator.

Helpful Tools and Appeals
If you agree with your new value, no action is needed. However, all property owners have the right to appeal their new value. The Wake County Tax Administration has created several new tools to help property owners understand their new value and how it was calculated.

The Residential Comparable Sales Search tool allows users to search sales of similar properties in their neighborhood, display the results on a map, and generate reports of comparable sales that can be submitted as part of a value appeal. You can find the tool at wake.gov/revaluation.

Taxpayers can request an informal review of their value from the Tax Administration Department. They can also appeal formally to the Wake County Board of Equalization and Review. Taxpayers should submit documentation as to why their new assessed value does not reflect fair market value or provide corrected or additional information about property characteristics that may influence their assessed value.

• Informal appeals deadline: March 1, 2024
• Formal appeals window: March 2 to May 15, 2024
   

More information on how values were calculated, how to view specific property information, and how to appeal were included in the revaluation notices mailed to each property owner. Additionally, more in-depth information on appeals, FAQs and revaluation statistics are available at wake.gov/revaluation.

Taxpayers who need help paying their property taxes are encouraged to apply for tax relief. Three tax relief programs authorized by the state of North Carolina may provide assistance for taxpayers 65+ years of age and living on a low income, 100% disabled and living on a low income, or for veterans with a total and permanent service-connected disability or their unmarried surviving spouse. More information regarding tax relief may be found at wake.gov/taxrelief.

The Tax Administration also has a fully-staffed revaluation call center that can be reached at 919-857-3800 or revaluation@wake.gov.