Property values in BuncombeCounty are up. With the completion of the 2006 property assessment, many homeowners found their homes are worth far more than their previous values, at least on paper.
The County reports that the average increase is 45%, or 11.25% per year since the last revaluation in 2002. However, one West Asheville homeowner (who has challenged the assessment) reported that his 1926 bungalow, previously valued at $88,500, had been reassessed at a value of $227,300, a 157% increase. This dramatic rise in property values has led many residents to wonder how they will be able to pay their property taxes.
To offset the huge increases in property values, the CountyCommission recently revised the tax rate downward, from 59 cents per $100 of assessed property value to 53 cents per $100. An even lower rate would have kept total county revenue unchanged (for a “revenue-neutral” budget), but commissioners voted to accept the 53-cent rate recommended by County Manager Wanda Greene.
Despite the decreased rate, tax bills faced by most residents will increase.For example, at the new rate, the owner of the $227,300 home described above would owe Buncombe County property taxes of $1,204.69 (at the old valuation and the old rate, he paid $522.12).
(The day before we went to press, this homeowner received a notice that his assessed value had been reduced to $168,400 as the result of an “informal hearing” with the Tax Department. The new appraisal represents a 90% increase in value, twice the County average. He now anticipates a County tax bill of $892.52.)
For the most vulnerable residents of BuncombeCounty, the North Carolina Homestead Exclusion Act (G.S. 105-277.1) provides some assistance. Under the act, senior citizens and permanently disabled persons who have an income of not more than $19,700 are eligible for partial property tax relief.
According to the Buncombe County Tax Office website, the Homestead Exclusion Act “excludes from property taxes the greater of twenty thousand dollars ($20,000) or fifty percent (50%) of the appraised value of a permanent residence owned and occupied by a qualifying owner.” This means that qualifying homeowners pay taxes on only half of the assessed value of their property. If the above homeowner were eligible for the exemption, he would be taxed for only half the value of the home, $84,200, and his County tax bill would be $446.26.
This home, previously valued at $88,500, had been reassesed at a value of $227,300, a 157% increase. Photo by Cathryn Shaffer.
Sheila McPeters of the Buncombe County Tax Office said that there are about 3,030 taxpayers who qualify for the exemption in BuncombeCounty. Exempt amounts range from $20,000 to $150,000.
To qualify for the Homestead Exclusion, a homeowner must be at least 65 years of age or totally and permanently disabled, a North Carolina resident, and have an income of $19,700 or less. Income includes earned income, social security and pension benefits, and all other non-taxable income. For married residents living with their spouses, the income of both spouses must be included.
More information about the Homestead Exclusion is available at www.buncombecounty.org/governing/depts/Tax/seniorDisability.htm, the Buncombe County Tax Office website. People who might be eligible (or their families) can also contact Sheila McPeters by phone at 828-250-4920 or by email at [email protected].
