Agenda 03-05-2026; 4-b - Final Report on Neighborhood Reviews and Revaluation Appeals

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2 Humanity homes based on deed restrictions on those homes that affect resale value. All other neighborhoods were reviewed by Tanner Valuation Group, and recommendations were made to the Tax Office. The Tax Office reviewed the recommendations and made value adjustments accordingly. Of the 172 neighborhoods reviewed, recommedations for value adjustments were made for properties in 57 of those neighborhoods. 2,761 properties received a value change resulting in an overall reduction of $98,757,700. Of these properties, 257 were the Habitat for Humanity referenced above. The total value reduction for the Habitat properties was $15,751,700. Tanner Valuation Group recommended no changes in value for the remaining 115 neighborhoods identified for further review. Tanner Valuation Group provided a Summary Report for the Orange County 2025 Reappraisal Findings and Recommendations which is included as Attachment 3. Appeal Status The Tax Office received 3,380 informal appeals during the informal appeal window from March 21 through April 30, 2025. Of those informal appeals, 2,148 resulted in adjustments to the value of the property, or 64% of the appeals. Total value reduction was $201,005,498 which is an average reduction of$93,578. All informal decision notices were mailed as of November 26, 2025. The formal appeal period was April 1 through July 31, 2025. There were a total of 1,038 formal appeals, and 686 resulted in adjustments to the value of the property, or 66% of the appeals. The total value reduction was $158,887,883, resulting in an average reduction of $231,615. The Fiscal Year 2025-2026 budget assumed a tax base reduction of 3%, or $936,162,977, resulting from the appeal process. The total value reduction from appeals was $359,893,381. The overall value reduction including appeals and neighborhood reviews is $458,651,081, which is a reduction of 1.47%. As of February 25, 2026, there have been thirty-four (34) appeals to the North Carolina Property Tax Commission (PTC) with a total of 94 properties. To compare to previous revaluation years: ➢ 2009 — 120 PTC appeals ➢ 2017 — 22 PTC appeals ➢ 2021 — 12 PTC appeals The last of the formal appeal decision notices were mailed on February 20, 2026. There is a 30- day window for the property owner to appeal to the PTC from the date the final decision notices were mailed, which means that the number of 2025 PTC appeals could increase. FINANCIAL IMPACT: The contract with Tanner Valuation Group is $68,000. The financial impact of the appeal and neighborhood review process is less than the estimated 3% reduction assumed in the budget at 1.47%, though there may be additional reductions from the PTC appeals. Estimated amount of interest to be paid for refunds per North Carolina General Statute 105-360(e) made after January 5, 2026 is $30,000. ALIGNMENT WITH STRATEGIC PLAN: This item supports all of the goals and objectives of the Strategic Plan as reliable and trusted tax values are fundamental in supporting all operations of County government.