Cherokee Tax Reevaluation 3/24/11

Cherokee Tax Reevaluation 3/24/11

What’s your property really worth?

New reevaluations could alter your tax bill

By Frank Bradley

Sentinel writer

MURPHY–With the boom to bust cycle of mountain real estate during the last several years, many residents have found themselves stuck with a much larger tax bill than they think they deserve. In some cases, properties are appraised at 25 to 30 percent, maybe even 50 percent, more than the property could be sold for.

During the last county property reevaluation, that of 2008, home prices were based on what they had been selling for in 2006 and 2007, that was before the bottom fell out of the economy, when it seemed like you couldn’t give your house away. It just didn’t seem right you had to pay a lot more in taxes.

On Monday, Tim Kane, an appraiser with Assessment Solutions, Inc., a company helping the county with the 2112  Reevaluation, told the Board of Commissioners, “We’re doing everything from the ground up. We are making sure this is a transparent process, recognizing we are accountable to the taxpayers.”

On Tuesday, Will Roberts, Cherokee County Tax Administrator, told the Sentinel that his team is looking at every house that has sold since 2008, which currently includes 1,036 buildings. These are arms-length transactions only, meaning they do not include foreclosures and properties sold to family members. He said they are also taking a photo of every house sold which will help in the appraisal process.  He said he expected this part of the process to be completed by the end of the month.

The next step will to look at lots and vacant land. The county’s evaluation process will be completed by the end of this year, and appraisal notices will go out next January which will apply for tax year 2112. There will, of course, be an opportunity for homeowners to appeal if they find it necessary.

Roberts said homes will also be grouped by neighborhoods. The will consider the sale of higher prices homes, lower priced one and those in-between. Taking all the sales into account, the appraisers will try to come up with a happy medium, he said.

In Monday’s meeting, Commissioner David Wood speculated that the jump in appraised values for many homeowners caused their tax bills to skyrocket and pushed some of them into foreclosure. He said their taxes went up too much, while taxes for commercial property didn’t really go up that much. He asked Cherokee School Superintendent Dr. Stephen Lane to explain how it affected funding for the county schools.

Lane said with the property appraisal rates so high, it allowed the millage rated to be lowered; however the higher values and lower millage rate changed Cherokee County from a low-wealth county to one above the state average, and with that change the county lost $250,000 from the state each year that would have gone to the Cherokee County Schools.