cabarrus county board of commissioners regular meeting november ...

October 17, 2011 (Regular Meeting)Pageappraising, the realities of the local market along with state and local lawsmust be considered. Also, fundamental to any mass appraisal system areknowledge, judgment and the ability to adapt a standardized system to thelocal market. A standardized system and method of handling both data and theapplication of the three basic approaches to value is necessary to achieveequalization and uniformity in the valuation process.The three basic approaches which may be used to arrive at a fair market valueare summarized as follows:COST APPROACHThis approach consists of estimating the land valueand the depreciated cost of the improvements to arriveat a value. Theoretically, the substitution principleis the basis for determining the maximum value of theproperty by this approach. The substitution principleassumes the value is equal to the cost of acquiring asubstitution of equal utility assuming no cost delayis encountered.MARKET APPROACHINCOME APPROACHThis approach utilizes the application of prior salesdata from the market and is also referred to as thesales or comparison approach. Use of this approachrequires that the sales used should be analyzed todetermine that the conditions of fair market valuehave been satisfied.The two most common applications of this approach inmass appraising are the capitalizednet income and thegross rent multiplier.The use of any of the three approaches requires careful consideration to begiven to:1. The relevancy of the approach applied to the property underconsideration.2. The inherent strengths and weaknesses of the approach used.3. The amount and reliability of the data collected.4. The affect of the local marketon the data collected.This standardized system or Schedule ofValues is designed and adopted to beused to establish Fair Market Value asof January 1 of the Revaluation year.Revaluation projects are mandated by State law to be performed every eightyears unless the Board of County Commissioners desires to perform theprojects more frequently. In the interest of maintaining fair and equitablevalues for the taxpayers of Cabarrus County the Board of County Commissionershas passed a resolutionestablishing a four year reappraisal cycle forCabarrus County as requiredby G. S. 105-286(a) (2).RESOLUTION ON OFTHE CABARRUS COUNTY BOARD OF COMMISSIONERSTO ADVANCE CABARRUS COUNTY’S REVALUATION SCHEDULEFROM JANUARY 1, 2012 TO JANUARY 1, 2008 AND TO IMPLEMENT SUBSEQUENTREAPPRAISALS EVERY FOUR YEARSDRAFTWHEREAS, Cabarrus County completed and implemented its most recentreappraisal of real property on January 1, 2004, utilizing its own staff andpersonnel; andWHEREAS, Cabarrus County desires to conduct a reappraisal of realproperty earlier than required by G.S. §105-286, to be effective January 1,2008, and to implement subsequent reappraisals every four years; andWHEREAS, the reappraisal work will be conducted by the staff of theCabarrus County Assessor’s Office as part of its program of work each year;NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of CabarrusCounty (“Board”) that in the annual budget ordinance for fiscal year 2007-08,the Board shall include an appropriation for Tax Administration in the amountrequired for reappraisal work during that fiscal year consistent with a planestablished for the reappraisal of real property, as required by GS §153A-150; andA-1Page 36