New Dare County property values dive 29 percent

By on February 19, 2013

valuegraphicThe first Dare County assessment in eight years met many predictions, showing an average decline in taxable value of 29 percent for housing, businesses and land.

Property along the oceanfront and on Hatteras Island showed the greatest depreciation compared to last year, but almost every owner in the county will see lower values.

On Monday, County Assessor Greta Skeen provided details of the 2013 revaluation, the first since 2005, when property values across the board saw huge jumps spawned by a hot Outer Banks real estate market.

Lower values, however, will not mean lower taxes for many owners. In 2005, valuable oceanfront properties absorbed a large portion of the jump, sparing many local homeowners — and voters — from taking a big hit.

This year, however, the opposite will be true in many cases.

Revaluations are required by state law at least every eight years, but they can be done more often. Dare County postponed early revaluations when it became clear that the burst of the housing bubble in 2008 would have a huge impact on values.

[AdsWithin] The total value of property countywide was $11.9 billion in 2013 compared to $16.9 billion in 2012, which reflects the 2005 assessment values of individual houses existing at that time.

To generate the same amount of tax revenue, the county would have to increase the tax rate from 28 cents per $100 of value to 41 cents. That does not include special districts in incorporated areas or taxes charged by individual towns.

The new figure is called the revenue neutral rate.

“Some people will be paying more. Some people will be paying less,” Skeen said. “It redistributes the burden.”

In a presentation to the Dare County Board of Commissioners, Skeen provided examples of the tax impact on three different houses:

• An oceanfront house in Rodanthe previously valued at $539,000 was assessed at $317,300 this year, a 41 percent decrease. Last year’s tax bill was $1,509. This year if the revenue neutral rate is used: $1,301, which is a $208 decrease.

• A soundfront house in Southern Shores valued at $706,000 last year dropped to $566,7000, a 20 percent decrease. Under the revenue neutral rate, the owner would pay $346 more a year — $1,977 in 2012 versus $2,323 in 2013.

• A house in Manteo that was built in 1984 and valued at $242,800 dipped in value to $169,500, a 30 percent decline and roughly the countywide average. The owner will be paying $15 more a year under a revenue neutral rate — $695 this year compared to $680.

Property owners can appeal their revaluations. Instructions are included in the information the county will send out net week.

Click for a larger view. (Dare County)

Click for a larger view. (Dare County)

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