2024 Reappraisal

Why is Rockingham County performing a Reappraisal (Revaluation) of all Real Property in 2024?

North Carolina General Statutes require that a reappraisal of all real property occur at least once every eight years. There are other considerations that require the reappraisal to be performed on a shorter cycle.

In 2020, the residential real estate market became very strong.  Commercial markets also changed. With the current real estate market, most residential property sells higher than the tax values. While we expect to see this in a normal market, we do not normally see property sales prices and values increase at the pace we saw through 2023.

Each year the North Carolina Department of Revenue studies the ratio of tax values to market prices. We do a random sampling and report the percentage of the tax values as compared to the market values.

For example, if your tax value was set at $96,000 in 2019, and you have made no changes to your house, if that house sells for $138,000 today - then the sales ratio for state reporting is 69.57%.

State law dictates that if sales ratios fall below 85%, or above 115%, the County must do a mandatory reappraisal within 3 years, for us that would be 2025. Our ratio that was published by the State for 2021 was based on the 2020 sales and was 91.52%. For 2022, based on 2021 sales, our sales ratio was 77.86%! With this sales ratio, we must perform a reappraisal within 3 years. For 2023, based on 2022 sales, our sales ratio was 69.55%. This sales ratio affects our public utility values. 

Another concern is the revenue and tax value we can lose from our Public Service Companies. Public Service Companies are companies like utilities, pipelines or transportation. These companies are valued by the State who then report the values to the Tax Department to bill. The assessed tax values for these types of properties was over 1 billion dollars in 2022!

State statutes dictate that these Public Service Companies will have their values reduced if our sales ratio drops below 90% in the 4th year of our reappraisal. This will be in 2023 for us. The values would continue to be reduced by the percentage difference under 100% that the sales ratio has decreased. This will continue until the next reappraisal.

 We will lose $249 million in tax value from these companies. This is a loss of over $1.73 million dollars revenue loss each year until the next reappraisal is done. This is equal to the approximate amount of revenue that two cents of our tax rate can generate.

The 2024 reappraisal does not take effect until January 1, 2024. Please remember that the information used to develop the new values was prior to January 1, 2024.

SELECT THE LINK BELOW FOR AN INTERVIEW WITH THE TAX ADMINISTRATOR EXPLAINING WHY WE ARE DOING A 2024 REAPPRAISAL.

What is a Revaluation/Reappraisal?

Reappraisal, or Revaluation, is the process of resetting the assessed values of land and improvements to 100% of their market value by recognizing changes in the real estate and construction markets since the last reappraisal in 2019.This includes all Commercial, Industrial and Residential property.

It does not include personal property such as machinery and equipment, motor vehicles, boats and personal property mobile homes. Personal Property is valued annually as of January 1.

The Reappraisal also provides equity in the tax value assessments of properties, to recognize changes that have occurred with individual properties or groups of properties.

How often does Revaluation occur?

Since 1920, North Carolina counties have had the responsibility to assess and collect property tax. North Carolina State Law requires each of its 100 counties to reappraise real property at least every eight years. The Statutes also require that a reappraisal be performed within 3 years if the sales ratio of tax values to the real estate market sales prices falls below 85% or above 115%.

A county can choose the reappraisal cycle that reflects the fluctuations of the local real estate market. The reappraisal to be conducted in 2024 will address real estate market changes over a 5 year period.

Why is Reappraisal important?

Equity - Over time, almost all property changes in value.  In many cases, if the property is maintained, the normal trend is an increase in value between reappraisals. However, from location to location there will be fluctuations in the value based on factors that influence the property.  Because of this, it is important to address the tax assessments between different areas and property types to allow for this fluctuation of market value from both location and condition of the property over time.  Through analysis of all factors, it allows adjustments in assessments from all causes.  Most properties increase in value and others can decrease.  This process redistributes or equalizes the valuation between properties. 

Who conducts the Reappraisal?

The 2024 Real Property Reappraisal is being conducted by a private contractor, Piner Appraisal. They have a team of data collectors and appraisers. These appraisers are experienced, real property “Ad Valorem” Tax Appraisers certified by the North Carolina Department of Revenue. 

Regardless who performs the Reappraisal-the Rockingham County Tax Assessor is responsible for ensuring the quality, uniformity and accuracy of the reappraisal!

How is a Reappraisal done?

For every piece of property in Rockingham County there is a “property record” detailing the features of that property.  The property’s size, location, quality of construction, topography, age and general condition are noted.  Since the last reappraisal of property in 2019, Piner Appraisal will review property in the county comparing the data on record to data observed at the property, making changes where appropriate.  They track and analyze the sales data of all property sold since the last reappraisal.  Rental markets are studied along with building costs.  From this analysis, valuation tables are built. 

You can review your 2024 property record card here on our website.

In order to value land, the county is grouped into approximately 500 zones called neighborhoods.  Using local land sales within these neighborhoods the information is tracked and analyzed to determine the land rate that applies to that particular area.  After new land and building rates are applied to the changes made from field review, all property data is recalculated.  The resulting new assessments are reviewed and compared to current real estate sales to confirm that new land and building valuation changes are correct and are resulting in market value. 

How much change can I expect?

There is not one exact percent of change.  All property valuations are subject to change according to the corrections that were observed during review.  Most property values will increase.  Some could decrease depending on excessive depreciation that can result from lack of maintenance. 

Because of Rockingham County’s proximity to Greensboro and Winston Salem, the south side of Rockingham County continues to be very attractive to buyers.  Sales information will be studied to determine other trends in our local market.

The tax value can change for reasons other than the market.  If the change seems higher or lower than expected, the change may be due to a correction of information that resulted from a review of the property.

How will the new assessments affect my tax bill?

Each year the Board of County Commissioners and the City and Town Councils adopt a budget and a tax rate. The tax rate is determined by the budget needs and the assessed value of property in their jurisdiction.

There is no set percentage of value change for each property. 

When will the new assessments go into effect?

New assessments will be effective for 2024 tax bills and will remain unchanged until the next reappraisal, unless there is a specific change to the property that results in a value change allowed by statute. You will receive a notice of your 2024 tax value in 2024. We mailed these on April 2, 2024.

How can I determine if the appraisal is correct?

The Tax Office appraises property en masse, so fluctuations are expected. With approximately 55,000 parcels, we are constantly correcting our data. The Tax Office can make an error or we can find changes that property owners have not reported to the Tax Office.

There is no one perfect value for all real estate. All appraisals are opinions, whether done by a tax appraiser or independent fee appraiser.

The appraised value should be close to the amount you would expect to sell your property for in 2024.  

First consider the value in relation to your neighborhood.  Does the appraised value appear to be close to the price you would consider reasonable if you were to list your property for sale?  If so, the appraisal is correct. 

Another way is to review the information shown on your property record card for accuracy.  A 2024 property card can be obtained at the Rockingham County Tax Administration office in Wentworth or viewed on our website.

What if I disagree with the valuation placed on my property?

All property owners have the right to appeal the assessed valuation if they determine the valuation to be substantially higher or lower than current market value.  Instructions for appealing your 2024 valuation will be on the Notice of Change of Value we will send out in April of 2024. You will be able to appeal online for 2024.

Pursuant to North Carolina General Statute 105- 322, the Rockingham County Board of Equalization and Review will give notice of its intent to meet for 2024. The Rockingham County Board of Equalization and Review meets to hear appeals of property situs, taxability or valuation. The Board will convene for its first meeting Wednesday April 3, 2024 @ 2:00PM at the Rockingham County Governmental Center Campus, 371 Hwy 65 West, Wentworth, NC. The Board will adjourn Wednesday May 8, 2024.

Prior to the adjournment date in 2024, any person who owns property in Rockingham County and who wishes to appear before this Board should contact the Rockingham County Tax Administration by phone at (336) 342-8291 or by mail at PO Box 68, Wentworth, NC 27375 for the appropriate form, application and appointment time. We will let you know the time and location of the Board Appeal Hearing once it is scheduled. 

Rockingham County Real Estate Market, where do we stand?

What are we to think about all the news we hear every day regarding the real estate market? This is the strongest Real Estate market I have seen. Sale Prices exceed market value the majority of the time. Yes this market could change?  We need to remember that all real estate value is local.  The factors that affect other counties in North Carolina, or other states, are not the same as Rockingham County, North Carolina. There are areas in North Carolina which are experiencing more growth than Rockingham County. 

The County tax office and Piner Appraisal monitored market conditions until January 1, 2024.  While the tax appraisers look at offerings for sale, we use actual transactions to set our rates, and then only transactions which appear to be true open market arm's length sales.  If in the future information shows a change in Market Value County wide, the County Commissioners can schedule the next general reappraisal date to adjust for those changes.