Every four years each county in North Carolina reappraises all real property to establish the current valuation for tax purposes. Everett Law Firm offers you the following information as public service to assist you if you want to pursue an appeal on your own. Call Everett Law Firm, P.A. at (800) 942-8048.

During any year (either the year of appraisal or otherwise) a taxpayer may appeal the appraised value of their property. An individual may appeal any property valuation in their county, as long as the taxpayer owns property in the county in question. You can reach the Department of Revenue toll-free by telephone at (877) 308-9103 opt. 2, opt. 4

 

Process - Property Tax Commission - Appeals Procedure (Property Tax Commission) - Appeals Procedure (Legal Framework) - Evidence, Presumptions and Burden of Proof in Property Tax Appeals - Discovery of Documents - Appearance at Commission Hearings - Appellate Review of Decisions by the Property Tax Commission - Articles of Interest

Generally the process of a tax appeal goes as follows:

• The first step is to contact your local tax office informally and try to resolve your differences that way.
• If it is not possible to settle the appeal informally, then the taxpayer may file an appeal to the local Board of Equalization and Review that begins to deliberate annually during the 1st week of April.
• Note, the Board of County Commissioners may comprise the Board of Equalization and Review or may appoint others to make up the Board of Equalization and Review that will handle the appeals.
• This appeal will take place at an appointed time with both the taxpayer and the county having a chance to present its arguments to the Board of Equalization and Review.
• The Board of Equalization and Review may issue a decision on the spot or may choose to deliberate and make a decision later.
• The taxpayer should receive written notice from the Board of Equalization and Review's decision after it is made.
• If the taxpayer is not satisfied with the decision of the local Board of Equalization and Review, they may appeal the decision to the Property Tax Commission located in Raleigh.
• The Property Tax Commission meets every month to decide questions of valuation and exemption.
• The Property Tax Commission is a trial court and thereby it is required to follow the North Carolina Rules of Evidence.
• When appearing in front of the Property Tax Commission the burden of proof is upon the taxpayer.
• Individual taxpayers are encouraged to hire an attorney, however they may present their own cases.
• The Property Tax Commission renders a decision based upon the greater weight of the evidence.
• The county that is being challenged will have an opportunity to cross-examine the witnesses presented by the taxpayer.
• If the taxpayer remains unsatisfied with the results from the Property Tax Commission they may appeal their commission's decision to the North Carolina Court of Appeals and the North Carolina Supreme Court.

The Property Tax Commission consists of five members appointed by the Governor and General Assembly. Once comprised, the Property Tax Commission is called the State Board of Equalization and Review.

The primary responsibility of the Property Tax Commission is to hear and adjudicate appeals from decisions made by the Court Boards of Equalization and Review and Boards of County Commissioners dealing with appraisals and adoptions of schedules of values that form the basis for the appraisals.

When a tax payer appeals a matter to the Property Tax Commission they are entitled to a hearing by the full commission. After the presentation of evidence by both the taxpayer (Appellant) and County (Appellee) the Property Tax Commission makes findings of fact and conclusions of law. This decision is made in writing and delivered to each side. Decisions made by the Property Tax Commission is appealable to the North Carolina Court of Appeals and North Carolina Supreme Court.

An individual who disagrees with a decision of a County Board of Equalization and Review or County Board of Commissioners may file an appeal with the Property Tax Commission challenging the County ruling. The Property Tax Commission, after conducting a hearing in accordance with N.C.G.S. 105-290(b) will make a final decision. The Property Tax Commission conducts a monthly Session of Hearings in Raleigh at the North Carolina Revenue Building 501 N. Wilmington Street, Room 135, Raleigh, NC.

Filing Requirements for Notice of Appeal N.C.G.S. 105-290(e)

A notice of appeal from the order of a Board of County Commissioners or Board of Equalization and Review, must be filed with the Property Tax Commission within thirty (30) days after the respective Board mails a notice of its decision to the property owner. If the notice of appeal is not filed with the Property Tax Commission within thirty (30) days, the appeal will be dismissed because the Property Tax Commission will then lack jurisdiction to hear the appeal.

 

Form of Notice of Appeal 17 N.C.A.C. 11/0212

The Property Tax Commission has designated a form for the filing of an appeal with the Commission. This form is known as Application for Hearing (Form AV-14) and can be obtained from the Property Tax Commission at no charge.

The Property Tax Commission requires appealing taxpayers to provide certain information on the Application for Hearing (Form AV-14). This information includes the following:

• The name and mailing address of the appellant.
• The county where the appeal arises from and the dates the appellant appeared before the appropriate county Board and was notified of the Board's decision.
• A description of the property that is subject to the application sufficient to identify it on the county tax records.
• The appellant's opinion on the value of the property on the valuation date of the assessment year at issue.
• The county's assessed value of the property on the valuation date of the assessment year at issue.
• The facts relied upon to support the appellant's claim that the Commission should order a change in the assessed value.
• Identification of documents that are available but are not included on the form.

It is important to note that an incomplete Application for Hearing (Form AV-14) may result in the dismissal of the appeal.

For an Application for Hearing (Form AV-14) to be considered complete it must have the original signature of the appealing taxpayer or their legal representative. An Application for Hearing (Form AV-14) may be filed by the property owner or the owner's legal representative.

During appeals in front of the Property Tax Commission the North Carolina Rules of Evidence are applied. Additionally, in valuation appeals, the taxpayer has the burden of proof and as such must show by competent, material and substantial evidence that the county's assessed value is arbitrary or illegal and that the assessed value substantially exceeds the market value of the property as of January 1 of the year at issue.

Rebuttable Presumption of Correctness

Taxes imposed on property in North Carolina are presumed to be correct.

The North Carolina Supreme Court established what it takes to overcome this presumption in the case of In re Amp, Inc., 287 N.C. 547, 215 S.E.2d 752 (1975). Per the holding of Amp the appellant taxpayer has the burden of establishing:

• The County employed an arbitrary or illegal method of appraisal; and
• The value assigned by the County Board was substantially greater than the true value in money of the property as of January 1 for the year at issue.

This presumption operates against the taxpayer and if they fail to present enough evidence to rebut the above presumption, the County's assessed value will be confirmed. However, if the appellant provides sufficient evidence the Property Tax Commission may grant the relief requested by the taxpayer or some other relief.

 

True Value in Money

The words "true value" are interpreted as meaning the market value (the price estimated in terms of money at which the property would change hands between a willing and financially able buyer and a willing seller, neither under any compulsion to buy or sell and both having reasonable knowledge of all the uses for which the property is adapted and for which it is capable of being used. N.C.G.S. 105-283.

Per the rules set out by the Property Tax Commission, the taxpayer and county are to exhaust all less formal opportunities to obtain discoverable documents before filing a motion to compel discovery with the Commission. All means of discovery available under the North Carolina Rules of Civil Procedure is permissible. If the party for whom discovery is sought, objects to the discovery, a Motion to Compel may be filed and heard by the Property Tax Commission. The party moving for discovery of documents must show that the discovery is needed for the proper presentation of the county's case. It is not for the purpose of delay and the issues must be significant enough to warrant discovery.

Sample Discovery

Sample Motion to Compel

At an appeal, each side must either appear in person or be represented by an attorney at law who is licensed to practice in North Carolina.

A party who disagrees with the decision of the Property Tax Commission may, within thirty (30) days after entry of the Commissions's final decision or order, file a notice of appeal and exceptions which shall specifically set forth the grounds upon which the moving party considers the Property Tax Commission's decision unlawful, unjust, unreasonable or unwarranted. Refer to N.C.G.S. 105-345(a). This appeal will be before the North Carolina Court of Appeals. The Court of Appeals scope of review is limited and any decision by the Property Tax Commission that is supported by substantial evidence must be affirmed. In re Maharishi Spiritual Ctr. of Am., 152 N.C.App. 269, 569 S.E.2d 3 (2002), cert denined, 356 N.C. 436, 572 S.E.2d 758 (2002).

Property Tax in North Carolina