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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: July 8, 2025 <br /> Action Agenda <br /> Item No. 7-a <br /> SUBJECT: Report on 2025 Revaluation Review Efforts <br /> DEPARTMENT: Tax Administration <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Nancy Freeman, Tax Administrator, <br /> PowerPoint Presentation (919) 245-2735 <br /> PURPOSE: To: <br /> 1) Receive descriptions of the types of analyses that are being performed on the 2025 <br /> revaluation results based on different property characteristics and provide acceptable <br /> margins; and <br /> 2) Receive information outlining the actions that will be taken by the Tax Office for properties <br /> outside of the acceptable margins. <br /> BACKGROUND: On June 1, 2025, the Tax Office requested that vendor Spatialest provide a <br /> study to compare valuation data from 2024 to 2025 to determine whether specific property or <br /> building types experienced greater percentage growth, and if so, identify the corresponding <br /> growth rates. Additionally, the vendor will conduct a vertical equity analysis to assess whether <br /> lower-value homes are being overvalued and higher-value homes undervalued. <br /> The analyses includes three projects: <br /> • Residential <br /> • Non-Residential <br /> • 2024 vs 2025 Value <br /> The purpose of the Residential and Non-Residential analyses is to review the vertical equity in <br /> the 2025 Revaluation to ensure that assessment levels are consistent over the range of values, <br /> with high-value and low-value properties exhibiting similar ratio of assessment to market value. <br /> The vendor is calculating the Mean and Median Sales Ratios, the Price-Related Differential (PRD) <br /> and the Coefficient of Dispersion (COD) based on building type and land use, as well as vacant <br /> and improved, and building age. <br /> The 2024 vs 2025 Value prosect identifies the amount of increase or decrease in value of <br /> properties from the previous 2024 values to the 2025 Revaluation values. The project looks at the <br /> range by taxing district, such as the Carrboro or Hillsborough taxing district. It also compares land <br /> value changes, building value changes, and overall total value changes. <br />