What Does the Real Property Tax Reassessment Mean?
It is 2008 already and I want to wish each of you a wonderful and prosperous New Year.
By now, we all should have gotten our tax reassessment from the Wake County Revenue Department. You may be wondering what this means. This article is going to explain the following: How they do a reassessment, remove a myth about Wake County property taxes, and why we had a reassessment. First, there is a distinction between real property (Real Estate) and personal property (Cars, Boats, etc) for which we get taxed on and how often they are reassessed in value.
In NC, real property (Real Estate, Homes, Land, etc.) gets taxed each year, but only gets re-valued at intervals not to exceed every eight years. The 2008 reassessment we just received is the new value the Wake County Revenue Department puts on our real property. The last reassessment in Wake County was in the year 2000. We pay a tax on real property each year, but it will now be based on the value set forth in 2008. So, when we pay our 2012 tax bill, we will be paying this bill based on the value set forth in 2008. The next Wake County reassessment should be in 2016 on real property. Now, each county reassesses at different intervals and schedules. For example, Johnston County will reassess in 2011 (8 years) and Harnett County will likely reassess in 2010 or 2011 (7 or 8 years). If you are in another county, then call your local tax office to determine when they will reassess.
We must not forget that if we live in the city limits of one our many wonderful towns (Raleigh, Cary, Apex, etc.), then we also have to pay separate taxes for each of these municipalities as well. Luckily in Wake County, we get one bill to cover both the city and county taxes. Other Counties and Cities will send a separate tax bill for both the county and the city that has to be paid.
These reassessments are done by NC licensed appraisers. These are the same appraisers that might value your home if you were to sell it. The Reassessment process started in late 2006 and went through November 2007.
There has long been a rumor floating around that Wake County only taxes real property on 80% of its market value. This is False. Wake County Taxes 100% of the market value for each parcel of real property. As the years go on then it will seem that this percentage gets lower, but it is and will be based on 2008 values for the next eight years.
Many of us got a shock when we received our new assessments, as we saw what the county values our home at. Of all the market analyses I have done for clients since the reassessment, they are pretty much right on. This is good news. This means your real property has gone up in value. This is why we invested in real estate... for it to go up in value...Right? This additional tax money will be used for a number of good things, such as build roads, build new schools, offer government sponsored programs for our communities, and much more. This is why we have a reassessment. It is a natural way to move forward, support, and fund some of the growth we are feeling in our communities.
If you want a FREE Market Analysis on your home, please go to my website and request a FREE no obligation analysis of your homes current market value.
On a side note: Personal Property is reassessed every year, and we get a tax bill each year for our personal property in which we are required to pay county and city taxes for.
I also want to recognize Grady Wright from the Department of Revenue appraisal department for his thoughts and enlightenment.
Written by: Brian D. Wray; CEO/President and Broker-in-Charge of Wray Realty.
Visit our website at www.Triangle-NC.com to learn more about our unique 3.4% Total Commission and Buyers Cash Back Programs
Feel Free to contact Brian Wray at 919-880-4188 or bwray@wrayenterprises.com.
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