It should come as no surprise that property values are on the rise in Highlands.
With an impending countywide property tax revaluation on the horizon, the value increase will leave some property owners paying more when their tax bill arrives each year.
During Thursday’s board of commissioners meeting Highlands Mayor Patrick Taylor pointed out just how much value Macon County, and the Highlands area, have gained since the last revaluation in 2019.
“What I found amazing was that the county as a whole was right at $8 billion in property value in 2018 and now that number is at $12 billion,” Taylor said. “Highlands has led the way with a 57 percent increase in total valuation to $2.8 billion, followed by the Highlands township, which is the surrounding areas, valued at $2.6 billion. You add those up and the Highlands area in total has $5.4 billion in property value.”
Properties in the Town of Highlands and Highlands township will generate approximately 45 percent Macon County’s property tax revenue following the revaluation.
Taylor noted that the increase in value belies the need for a new fire station, which is currently under construction on Franklin Road and is expected to be open in October.
“We have a lot of properties that we need to protect and a lot of valuable properties,” Taylor said. “The new fire department is a big investment in our public safety and a way to help protect property owners’ assets.”
There is a public hearing regarding the proposed Macon County schedule of values set for 6 p.m. on Tuesday, Sept. 13 during the Macon County Board of Commissioners meeting at the courthouse in Franklin. Taylor noted that the revaluation is a county undertaking as laid out by state statute and the Town of Highlands is not responsible for the valuations.
“Every time we go through (a revaluation) I get the same phone calls, ‘How can the tax people do this to me and my property? I’m outraged and I want to appeal,’” Taylor said. “The county has a process to do that, and they will keep everyone informed regarding how to appeal their property valuation if they choose to do so.”
Macon County undergoes a property revaluation every four years as outlined by the state of North Carolina. Counties can delay revaluations if markets fluctuate wildly, but state statutes require a revaluation be performed at minimum every eight years.
Property appraisals
As part of the reappraisal process, the state requires that “all property, real and personal, shall as far as practicable be appraised or valued at its true value in money.”
The state interprets “true value” as meaning market value or the price estimated in terms of money at which the property would change hands between a buyer and seller. In other words, if you were to sell your house, how much you could expect to get for it at market value. Market value is not the same as market price, which is the price the property actually sells for.
When assessing the value of a property, an appraiser may use one or a combination of the fol-lowing methods: market, cost and income.
The market approach is the most commonly used and involves comparing the characteristics of a property to others that have recently sold, with adjustments made to account for differences between the properties. Since no two parcels of land are exactly alike, adjustments may be made for differences such as time of sale, location and physical characteristics.
Using the cost approach, an appraiser would determine the cost to build the structure new and then make an allowance for depreciation based on the condition of the existing improvements.
The income approach is used when the property was bought for its potential to produce in-come. In this instance, the appraiser estimates the value of an income-producing property by converting anticipated benefits (income and rent) that arise from owning the property.