Her family has owned land just west of Chapel Hill for over 100 years, but this is the first time she’s seen the value triple, putting her at risk of being priced out, Sandra Theard told the Orange County Board of Commissioners.
The value of one parcel — seven undeveloped acres on Rocky Ridge Road — jumped from $144,600 to $406,900 after the county’s recent revaluation, she said. Another 4.5 acres with a nearly 50-year-old cinderblock house on Union Grove Church Road was valued at $369,700 last year and is now worth $604,800.
It’s too much for her to pay on a limited Social Security income, and the increase just doesn’t add up, said Theard, 69. She doesn’t want to sell, despite increasing pressure from investors, all of whom offer her less than the county says the land is worth, she said.
“I’m trying to pass it down [to my son and grandson]. This is the land that my father gave to me, and the one thing he stressed, ‘pay your taxes, even if your lights got to get cut off’,” Theard said. “I don’t want to be priced out or move, because I can’t afford to pay my taxes.”
Theard was among roughly 16 residents, many of them older adults, who asked the Orange County commissioners to delay this year’s revaluation or find cuts in next year’s budget.
“What the commissioners can do for the people who’ve lived here and want to continue to live here is to set a realistic budget that we can afford, that we and our children will not be paying for 30 years down the line,” said Ashley Parker, who cautioned more farms could be lost to rising property taxes and rapid residential growth.
North Carolina counties are required to complete a revaluation, or appraisal, of all commercial and residential property at least every eight years. Orange County’s revaluation is on a four-year cycle and accounts for home prices on the open market, plus their location, size, scale, and other factors. The goal is to make sure owners of similar properties pay roughly the same tax bill.
Homeowners this year are feeling pinched by property value increases of 50% or more, which have pushed the county tax base — the total value of vehicles, personal and real property — to $32.6 billion. Other counties are reporting similar increases, The News & Observer reported.
That’s a 38.6% increase from last year, County Manager Travis Myren said, and leaves the county with a “revenue neutral” tax rate of 63.84 cents per $100 in assessed property value. That would bring in the same amount of money to the county as last year, plus a 2.5% increase, he said.
Not this time, although Orange County did delay its 2013 revaluation because the nation was still recovering from the 2008 recession. That led to sticker shock in 2017, especially among commercial property owners, and added over $1 billion to the county’s tax base.
Another $2.44 billion was added following the 2021 revaluation, when some lower-income homeowners were hit hard. In Chapel Hill’s Northside neighborhood, residents and their advocates challenged the fairness of the county’s revaluation process and pushed for relief. The commissioners established the Longtime Homeowner Assistance program in response.
State law prevents the commissioners from a delay this year, because it triggers a revaluation when the sales ratio — the difference between the assessed and market values of property — drops below 85% or is greater than 115%.
Orange County’s sale ratio fell to 81.97% in 2022, Myren said, and in 2024, it hit 64.45%, largely due to the growing demand for housing after the 2020 pandemic, he said. The demand for commercial property, especially office space, has languished, he added.
The county can’t delay the revaluation, and it also can’t value property at different levels based on income or age, county resident Terri Buckner acknowledged to surprised looks from a few audience members. She urged the commissioners to be “extremely careful in what you approve going forward.”
“I worry each month, for the last couple of months, am I going to get my Social Security check, and when I open my bank account and it’s there, I breathe a sigh of relief,” Buckner said. “I want to do what’s right for other people, but I also want to be able to live the end of my life in comfort and safety.”
That depends on how much your property value increased.
Homeowners who saw their property values increase by less than 35% could pay the same or a lower tax bill if the county adopts a revenue neutral tax rate. Increases of 35% or more could mean a higher property tax bill.
The county and/or the towns could also adopt tax rates that are higher than the revenue neutral rate, leaving more homeowners to pay higher tax bills.
As an example, the owner of a home valued at $400,000 last year paid roughly $3,452 in county taxes. If that same property is now worth $600,000 — a 50% increase — the homeowner would pay roughly $3,830 if the county approves the revenue neutral rate.
A 25% increase, creating a home valued at $500,000, would result in a revenue neutral tax bill of $3,192, a decrease of $260.
Orange County and the towns of Chapel Hill, Carrboro and Hillsborough will set new tax rates by June. The commissioners also set the property tax rate for the Chapel Hill-Carrboro schools district and the rural fire districts. Property tax bills will be mailed out in August.
An appeals form is included with revaluation notices and also available online. Appeals can be submitted:
? By mail: Orange County Board of Equalization and Review, Orange County Tax Office, P.O. Box 8181, Hillsborough, NC 27278-8181
? In person: Place in lockbox at 228 S. Churton St., Hillsborough
? Online: appeals.spatialest.com/nc-orange#
There are two appeals periods:
? Informal appeal: Property owners can submit a real property or personal property appeal, such as for a car or mobile home, from mid-March through April 30. Staff handles informal appeals.
? Formal appeal: Property owners can submit a real property appeal or a personal property appeal, such as for a car or mobile home, from May 1 through July 31. The county’s Board of Equalization and Review considers formal appeals.
There are local and state programs — each with its own requirements — that help lower-income homeowners pay their taxes.
? Homestead Exclusion: Homeowners who are 65 and older or permanently disabled as of Jan. 1, with incomes below $37,900. Must own your home as of Jan. 1.
? Circuit Breaker Tax Deferment: A tax deferment program that puts a lien on your property. All owners of the property have to be approved and cannot earn more than $56,850 a year in 2025. Taxes from the last three years of program participation must be repaid if the owner dies, is later disqualified, or stops using the home as their permanent residence.
? Disabled Veteran Exclusion: Available to honorably discharged veterans who get their disability documented through the Veterans Administration. Applications are due before June 1 each year.
? Longtime Homeowners Assistance Program: A tax relief program for Orange County and Chapel Hill property owners who have lived in their home for at least five years, earn no more than 80% of the area median income for their household size, and own a home worth less than the county’s annual property value limit.
TG
The News & Observer
919-829-8926
Tammy Grubb has written about Orange County’s politics, people and government since 2010. She is a UNC-Chapel Hill alumna and has lived and worked in the Triangle for over 30 years.