Homes Selling at Less Than Assessed Value in 66 Out of 100 NC Counties

Homes are selling at prices lower than their assessed values in 66 out of 100 NC counties, including every county in the Triad besides Guilford County, which just went through a reassessment last year. What that means is that any county going through a revaluation will likely have to raise tax rates to stay revenue neutral. From a Triad Business Journal story on the issue:

In “normal” times following revaluations, with tax bases growing by 20 percent or more, counties are able to cut the tax rates they impose, in so-called “revenue neutral” actions.

Some 13 N.C. counties revalued last year. In nine of those cases, the new “revenue neutral” tax rate was higher than the previous rate due to eroding property values. Counties in which that happened included Cabarrus, Guilford and Pitt.

“Counties and towns that experience shrinking tax bases will need to dramatically reduce their expenses or raise tax rates to account for the lost revenue,” McLaughlin said. “Case in point: Carteret County raised its property tax rate by 30 percent last year in recognition of its new, smaller tax base.”