Agenda - 04-18-2023; 4-a - Property Tax Appeals Bias Study Presentation from UNC School of Government

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4 2 February 2023 The Study did not identify any consistent relationships between (1) appeal rates and neighborhood White population percentages, (2) appeal results and neighborhood White population percentages,or(3) appeal results and median neighborhood property values. These observations applied to both informal and formal appeals. In other words,there was little evidence that taxpayers in neighborhoods with higher minority populations were less likely to appeal their tax appraisals than taxpayers from Whiter neighborhoods.Nor was there evidence that taxpayers from neighborhoods with higher minority populations or lower property values achieved worse results when they did appeal than taxpayers from Whiter and more expensive neighborhoods. If there were a strong systemic bias in Orange County's appeal process, one would expect to see both higher appeal rates and better appeal results for both more expensive neighborhoods and Whiter neighborhoods. That is not the case.While more expensive neighborhoods tend to have more appeals than do less expensive neighborhoods,the rest of the data provides little evidence of consistent bias. It is important to note that the Study results were influenced by the unusually large number of 2021 reappraisal appeals filed in and around Northside,a historically Black neighborhood near the UNC—Chapel Hill campus.According to a representative from one of the civic organizations that worked with residents from these neighborhoods,the total appeals filed by taxpayers in and around Northside numbered close to 200.As a result,at least two Census tracts in the countyz had much higher appeal rates and larger reductions in appraisal values (i.e.,better appeal results)than would have otherwise been expected,given the statistics from other Census tracts with similar demographics.The impact of the Northside appeals is highlighted where appropriate below. The following tables provide a summary of how the two independent variables—property values and race—affected the two dependent variables—appeal rates (how often taxpayers appealed their tax appraisals) and appeal results(the percentage reduction in tax appraisals resulting from appeals). Appeal Rates—(see Table 1) The higher appeal rate for the more expensive neighborhoods indicated in table 1 appears to be consistent across the data. However,the higher appeal rates for neighborhoods with low White populations are somewhat misleading because that category includes the Northside tracts. For more details,see data on pages 5 and 7. Appeal Results—(see Table 2) Table 2 shows appeal results as percentage reductions in initial appraised value. For example, the 8.9 percent average for all neighborhoods'informal appeals means that the average informal appeal resulted in an 8.9 percent reduction in appraised value.Note that the larger reductions from informal appeals for neighborhoods with low White populations are somewhat misleading because that category includes the Northside tracts. For more details,see data on pages 6 and 8. 2.These tracts,numbered 107.05 and 113,can be located on the map cited in note 1,above. ©2023.School of Government.The University of North Carolina at Chapel Hill.