Agenda - 11-09-2010 - 2 - Laserfiche WebLink

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Attachment 1 • Revaluation Facts: • The purpose of a revaluation is not to garner increased values and thereby be in position to lower the tax rate it is in fact to ensure that all citizens are having their assets taxed fairly and equitably. • The average growth has historically prior to 2009 been 4% per year. This 4% represented actual increase in existing property value. When new construction was factored into the equation the percent of growth averaged 6% per year. That equated to 24% every four years. • Beginning in the later part of 2007 and during the year 2009 we began to see a slowing in new building permit issuance and number of actual completed sales. Additionally with an increased fiehd presence of Orange County staff we were able to complete the 2009 revaluation with the closest to full market sales ratio since 1987. (please see Exhibit I available through the North Carolina Department of Revenue) • Factors currently affecting the market - over the past 18 months the number of sales have dropped approximately 50% in comparison to prior years. Sales for the timeframe of January 1, 2005 through December 31, 2006 were 4844. For the timeframe of January 1, 2009 through October 31, 2010 the total sales is 2178. Additionally property is remaining on the market for a longer average time than historically data indicates. (See please Orange County Sales document included) • Currently with the limited number of completed sales it is reasonable to state that • at 22 months out from the 2009 revaluation we have basically established the equivalent to less than 1 year of sales data historically. • The sales market analysis which was presented to the Board of County Commissions in February f 2010 reflected an average ratio of assessed value to sales price of 100.40%. The median ration of assessed value to sale price was 100% and the measure of how closely values clustered around the median (COD) was 9.68. As reflected in the included sales market analysis covering January 1, 2010 through October 31, 2010 you will find this data has sifted very little. • The North Carolina Department of Revenue Property Tax Division sales ratio study of January 1, 2010 reflected the Orange County median as 98.65%. The same timeframe out from the 2005 revaluation the median for Orange County was 89.74%. • The 2005 beginning ratio was 95.58% and by the end of the year of 2006 the median was 88.29%. Our current reflected median from January 1, 2010 to October 31, 2010 is .99069 reflecting that our values are remaining flat. Prepared 11-3-2010 J Roberson • 2