Property Tax Fairness

by Judy Major –

As a 2024 candidate for Madison County Commissioner, I focused on the topic of Taxation Without Fairness during the forums held in Hot Springs and Mars Hill, NC.

Property taxes paid each year by the owners of real estate are the primary source of funding needed to pay for most county services. Real estate includes buildings (from a simple shed to a multi-story, multi-unit apartment complex) and land (from a partial acre of rock cliff to hundreds of acres of prime land suitable for development).

Ideally, the burden of that tax, determined by the rate set by the county commissioners each year, is carried fairly by all property owners according to the value of their property.

However, well documented research has shown that in most counties across the U.S. the process for determining the value of real estate is regressive, meaning that smaller, less valuable homes and land tend to be over assessed and larger, more valuable homes and land tend to be under assessed.

In Madison County, 66% of owners of the least valuable properties are paying more than their fair share of taxes, while 73% of those who own some of the most valuable properties are paying less than their fair share.

Property values are only as accurate as the data entered by the assessor into the statewide schedule. That data may come from a variety of sources, including previous valuations and property descriptions, recent sales of homes/property in the area, self-reported information from the property owner, a drive-by inspection, or, infrequently, an on-site evaluation and interview of the owner.

Property taxes are the single most important source of income for our county. Those taxes are fair only when the property (homes, buildings and land) is assessed thoroughly and correctly.

Several North Carolina counties have begun taking steps to address unfair property taxes. All homeowners should share the tax burden in proportion to our means.