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15i <br /> ACTION AGENDA ITEM ABSTRACT <br /> Page Two <br /> Need: (Con't) In the development of this schedule over 7,000 sales were collected. <br /> Over 3,000 of the most recent sales were completely analyzed to find the <br /> weight of the contribution of each component part of each property until <br /> we could produce the selling price by using all the data on a parcel. All <br /> three approaches to value are to be considered in all appraisals using the <br /> approach that most suits the property. A. general role of thumb is, that <br /> replacement cost is used on newly constructed properties, that the comparison <br /> approach is used on older properties and vacant land, and the income approach <br /> is used on income producing properties. <br /> The Use value schedule was developed by N.C. State University along with a <br /> committee appointed by the General Assembly. Due to the current economic <br /> condition of farming and the use of the income approach to value, as <br /> required by law on use value, the value of farmland in the Use Value Program <br /> is down. The average looks to be about 40%, but in some cases as much as <br /> 90%. <br /> Impact: With the adoption of this schedule of values we will be able to apply the data <br /> on the 35,000 parcels in Orange County to the schedule and produce. current <br /> 1987 values. The notices of value can be mailed to the Taxpayers starting as <br /> early as November 15, 1986 and the Tax Supervisor would .start holding informal <br /> hearings with taxpayers very soon thereafter. <br /> What will be the impact on the taxpayer? I can only speak very generally <br /> and individual properties may vary greatly from these general statements. The <br /> largest increase will be in commercial property and property that is changing <br /> from one use to another, i.e: farm to suburban or single family to multi- <br /> family. The bulk of the properties which are residential should see a <br /> moderate increase in value of 30% to 50%. Farm properties that qualify for <br /> use value will see a decrease in use value but market value will be up. <br /> The impact of use value on the tax base will be much greater than ever before. <br /> Any taxpayer that feels that his or her appraisal is not the true value of <br /> their property will be given the opportunity to present their facts to an <br /> appraiser, employed by Orange County, not an outside appraisal firm, and <br /> if still not satisfied may present their facts to the Tax Supervisor. Every <br /> appealed property will be reappraised using all new information brought <br /> forth by the taxpayer, be it lower or be it higher. <br /> Marshall Evaluation Service has been used as a guide in the appraisal of <br /> some commercial properties and should be adopted as an addendum to the <br /> schedule of values. <br /> tecommendation: Approve <br />