COLUMBUS – Polk County Commissioners received responses recently from N.C. Rep. Cody Henson and N.C. Senator Ralph Hise regarding the county’s plea for tax reform.

Commissioners met Monday, May 15 and heard from county manager Marche Pittman, who said he, commissioner vice-chair Jake Johnson and human services director Joshua Kennedy went to Raleigh recently to meet with representatives.

“We spent some time talking about the tax issue,” Pittman told commissioners. “Our representatives do understand our desire and wish to reach out to the rest of the counties in North Carolina.”

In April, commissioners approved a resolution calling for the General Assembly to complete a study of the property tax system and to provide relief to long-term property owners from being taxed out of their properties. Polk sent the resolution to all North Carolina legislators, N.C. Governor Roy Cooper and all county commissioners in North Carolina’s other 99 counties asking for their support.

The resolution for law change was sent after several packed meetings in Polk County by residents who said they saw up to 300 percent increases in their property values following the recent property revaluation. The increases in the county were mainly seen in the Green Creek area, particularly close to Tryon International Equestrian Center (TIEC).

Sen. Hise and Rep. Henson both responded recently with each saying under the North Carolina Constitution, all properties have to be assessed uniformly across the state.

“Under the North Carolina Constitution, all property must be assessed uniformly,” Sen. Hise said. “Since this is a provision within our constitution, any changes regarding tax assessment would have to be statewide, not just specific to Polk County, which could have unintended consequences all across the state. I am willing to explore any options; however, changes to our state’s constitution are more complex than changing a law, and would require a statewide base of support.”

Henson also said all property must be assessed equally and it would be deemed unconstitutional to change laws affecting some and not others.

“Several constituents have expressed a desire for the statute regarding tax assessments to change since this has caused their property values to unexpectedly rise,” Rep. Henson said. “However, under the North Carolina Constitution all property must be assessed equally and it would be deemed unconstitutional to change the laws affecting some properties and not others. Any changes for tax assessment would have to be for all of North Carolina and not just Polk County.”

Both representatives suggested Polk County adopt a revenue neutral tax rate next fiscal year, which the county is planning to do (see full text of letters from Hise on pg. 7 and Henson on pg. 15).

A revenue neutral tax rate will mean the county receives the same amount of tax revenues next year as this year but will still mean properties with higher tax values following the reassessment will pay more in taxes next year.

The Bulletin asked commissioners and manager Pittman their responses to the letters from Hise and Henson.

Commissioner Johnson said he is discouraged that state law gives the county little to no control over the valuations that have hit some residents hard.

“As a commissioner it is discouraging that our state laws give us little to no control over the valuations that have hit some of our citizens so hard,” Johnson said. “We are doing all we can to continue to reach out statewide, in hopes we can get traction and support from areas where similar issues have occurred. I will continue to strive for a fiscally conservative budget that keeps the tax rate as low as possible so our citizens can keep more of their own money.”

Commissioner Ray Gasperson said now that the representatives have reaffirmed tax reform will require action by the state legislature, he hopes they will provide strong leadership in helping to find a solution to this taxing problem.

“Now that Representative Henson and Senator Hise have reaffirmed that it will require action by the NC State Legislature before it becomes viable for local county governments to provide relief from sharp increases in revaluation property tax assessment, I hope they will provide strong, decisive leadership in helping to find a solution to this taxing problem,” Gasperson said. “They both represent primarily rural districts, and they both received a mandate from the voters in the 2016 election (each receiving approximately 61 percent of the votes) to work for all taxpayers. Obviously the advantage they both have lies in being members of the veto proof majority political party at the Legislative. If they are willing to take bold initiatives to help financially suffering rural property tax payers, then I believe there will be a viable means to correct a property tax system that is not looking out for owners of small acreage farmsteads.”

Pittman said during his discussion last week with Johnson and Kennedy and state representatives in Raleigh, they talked about the county’s desire to spread the word across the state by reaching out to every county and county commissioner to seek support in having the taxation issue evaluated thoroughly by the legislature.

“They are now aware of our efforts and I feel like they understand our outreach,” said Pittman. “We will be sending our letters out by the end of this week and we hope that will impact the legislature in a positive way.” 

Letter from Sen. Hise:

In January 2017, Polk County reassessed property values for homeowners for the first time since 2009. County governments are required by N.C.G.S. 105-286 to assess property values at least every eight years. A property must be assessed at its true value, determined by its market value at the time of assessment. The eight-year interval, along with new investment and development and improved infrastructure, have resulted in many owners experiencing a large increase in the property value since the last assessment in 2009.

Polk County officials have worked diligently to provide as much information as possible to assist property owners for options moving forward, and have also expressed a strong focus on mitigating the spikes in property values by possibly shortening the interval between assessments. I commend the efforts of Polk County officials for working with the Department of Revenue to acquire all available information, assisting individual property owners in addressing their concerns, and searching for solutions to prevent similar scenarios in the future. Additionally, I recommend that Polk County Commissioners move toward adopting a revenue-neutral tax rate to reduce property tax spikes. This provides commissioners the option to lower the tax rate when property values increase so as to maintain property tax revenue consistent with previous years.

Some constituents have called for a change in statute regarding tax assessment. Under the North Carolina Constitution, all property must be assessed uniformly. Since this is a provision within our constitution, any changes regarding tax assessment would have to be statewide, not just specific to Polk County, which could have unintended consequences all across the state. I am willing to explore any options; however, changes to our state’s constitution are more complex than changing a law, and would require a statewide base of support.

– Ralph Hise, N.C. Senate

Letter from Rep. Cody Henson:

County governments are required by statute to assess property values every eight years and Polk County reassessed property values for the first time since 2009 in January of this year. Over that eight-year span the county saw new developments and enhanced infrastructure, which resulted in many property owners seeing an increase in property values since the last assessment in 2009.

Polk County officials worked hard to find solutions for property owners and provided valuable information to help resolve the spikes in property tax value rates. The officials in Polk County sought guidance from the Department of Revenue to gather information to address property owners concerns and search for ways to prevent this from happening in the future. I appreciate the time and consideration the officials in Polk County have put into looking for ways to settle this matter.

Several constituents have expressed a desire for the statute regarding tax assessments to change since this has caused their property values to unexpectedly rise. However, under the North Carolina Constitution all property must be assessed equally and it would be deemed unconstitutional to change the laws affecting some properties and not others. Any changes for tax assessment would have to be for all of North Carolina and not just Polk County.

Currently it seems the best course of action would be for Polk County Commissioners to approve a revenue neutral tax rate to reduce property tax hikes. This will provide commissioners the choice to lower tax rates when property values increase and keep it consistent with prior years. I am happy to look for other alternatives, but any changes to the constitution are more detailed than changing a law and would need support from across the state.

– Cody Henson, N.C. House District 113