Reappraisal 2024 “is coming,” Keith Miller, Buncombe County’s tax assessor, warned during a presentation on “The Buncombe County Property Revaluation Process” during an early-morning Dec. 1 meeting of the Asheville-based Council of Independent Business Owners at UNC Asheville’s Sherrill Center.

Between 50 and 60 people attended the one-hour session that concluded with a separate presentation on “The State of Our Local Economy & Jobs Report” by Nathan Ramsey, who is director of the Mountain Area Workforce Development Board at Land of Sky Regional Council,. (A story on Ramsey’s presentation begins on Page A1.) 

Regarding the upcoming Buncombe reappraisal, Miller said, “We’ve had a robust information campaign.” 

After a brief pause, he asked, rhetorically, “So reappraisal — why do we do it? Because the state of North Carolina says we must do it... at least every eight years... We’ve been doing it on a four-year cycle” in Buncombe.

“If we didn’t do it every four years, people would have a tremendous sticker shock, if things went the way that they’ve been going” — higher and higher, for the most part.

He then asked, rhetorically, “What is reappraisal— and why do I tell people it’s good?”

In answering his own question, Miller said, “People say it’s about more taxes and getting more revenue… Not for me — it’s about assessing value of property... The big thing, I think, in reappraisal is equalization....”

Rhetorically, he asked, “What does that mean, as the market changes over time, rates of appreciation are different in different areas over time?”

In response, the tax assessor asserted, “The state says you have to pay 100 percent on your market value — that is what your taxes are based on. So reappraisals should fix that problem...

“We’re pushing data to improve our data…. For better reappraisals, we need better data. So we’ve asked the residents of Buncombe County to help us with this....

“We will not see inside of 99.9 percent of the houses in Buncombe County — ever...

“If you go next door to your neighbors and you never get to see the inside of their house, and you take some measurements… can you get it right?

“Because that’s what our appraisers are doing every day. Do we always get it right? No. But we need your help to do it better.”

In noting that data is vital for precision, Miller said, “If I were to say, ‘Could you give me a value on the (Omni) Grove Park Inn,’ would there be a the high expectation that you get it right?”

The tax assessor explained that part of the equation is that “what we don’t know is what is the revenue and expenses of the Grove Park Inn.

“The point is... Do we always get it right? No. But do we do the best we can with the info we have? Yes!”

He then noted that the $50 million recently reported to have been paid to buy the Asheville Outlets… Remember this — the values that are these properties today, represents Jan. 1, 2021 revaluation So the (appraised) values today do not represent market value of today.”

Miller also noted that there are “130,000 parcels of real estate in Buncombe County, which requires 10 appraisers to do the job.”

However, if one wanted Buncombe to do an appraisal of each property, “it would take about 270 appraisers to do it, which is not financially viable for Buncombe County,” Miller said.. “Every county in the United States uses the method of mass appraisal,” including Buncombe.

“We have models we use... We gather information from across the Southeast. That’s called ‘mass appraisal.’ We don’t have it — individual information. It is confidential information... We’re going to sit down at the table with owners of commercial real estate,” Miller said of the revaluation process.

What’s more, Miller said, “When we get into the latter part of 2024, going into 2025, I’m happy to review values with you — and give you an idea of what you can expect.

“We’ve always employed a commercial real estate appraiser. We do the same with residential — and we employ a residential real estate appraiser. Same thing with commercial…

“Lastly — the appeal process. Every property-owner has the right to appeal a revaluation. You will be more successful in the appeal process if you talk with us and meet with us. As long as you’re reasonable… you’ll probably go away successful.

“If you’re unhappy on Jan. 21, 2025 with your reappraisal, let us know.” 

For those preferring to handle everything online, he recommended using the app myvaluebc, which can be accessed under buncombecounty.org. Miller described the app as a place to “go to do anything” related to Buncombe property revaluations.

During a brief question-and-answer session that followed, an unidentified man asked Miller, “What is the timetable?”

The reapraisal will be effective Jan. 21, 2025,” Miller replied. “Then I will send you a notice”

Another unidentified man asked, “Commercial properties are normally set on a cap rate. How do you do that?”

“We get information from other local areas,” Buncombe’s tax assessor stated. “If there’s not enough good data to do what we’re comfortable with, then we go out and get someone who’s an expert on cap rates.”

An unidentified man asked, “Do you use Zillow” and other such real estate websites?

“Yes, we get it (information for repraisals) from all of the websites,” Miller replied,

CIBO member Mac Swicegood queried, “Would you expand upon what is ‘appealable’ and what’s not?”

“Everything’s appealable,” Miller answered. “But what you can be successful on is the question. If you have a property with contamination — how do you fix it? Who’s responsible for fixing it? Sometimes there’s not a good answer. If you don’t get the answer you’re seeking from the local board of property tax appeals, then the next step is the state board of property tax appeals.”

An identified man asked, “It seems to me the valuation should be on the property — not on the profitability of a business” on the property. “In the last couple of weeks, we’ve had a number of businesses that have closed, so the marketablity has gone down because their buildings are empty.”

In response, Miller asserted, “The value of the property is not the profitability of the business, but what is the lease rate of that building… The income (that can be generated) from the building. So we separate them....”

Persisting, the same man then asked, “If the building has been empty for five years...”

“It’s about market rent,” the tax assessor answered. “What can the building produce in the market? The first question I’d ask is: ‘Why can’t you get this leased?’”

Another unidentified man queried, “If the property-owner appeals, can you end up having to paying more?”

Prompting some chuckles from the CIBO audience, Miller replied, “When you appeal, it (the tax liability) could go up, down or stay the same… It does happen — that the price goes up,” on occasion, when taking a chance on improving one’s tax status in the appeals process.