Asheville Area Mansion Owners Could Face Higher Taxes; Changes in Local Tax Assessment
Following changes in one county government department, homeowners in the burgeoning local mansion market could find themselves paying property taxes that are higher and fairer, according to advocates of reforming county tax assessment.
New Assessments Bring Fairness
Those changes in the way Buncombe County assesses the value of homes for purposes of taxation include greater outreach to owners of lower-priced homes to help them appeal assessments, more monitoring of real estate websites, and the addition of two new assessment department staff – with one of them assigned to luxury homes. County Assessor Keith Miller presented the changes to the Board of Commissioners on Feb. 20.
The presentation followed years of pressure by reform advocates and coverage by the Citizen Times of multi-million dollar gaps between sale prices of mansions and their tax-assessed value. One glaring example was Deerhaven Gardens, valued at $40 million by a private appraiser, while the tax assessors had it at just $3.3 million. After public scrutiny, the assessed value was raised to $6.3 million.
Impact of Changes on Tax Bills
To calculate tax bills, the assessed value is multiplied by a tax rate set annually by elected officials. Owners of Deerhaven saw their property taxes jump from $19,070 in 2022 to $37,702 in 2023 after the increased assessment.
On the flip side, reformers highlighted that owners of lower-end homes were being over-assessed, leading to poorer county homeowners being over-taxed by $1 million and wealthier homeowners undertaxed by nearly $6 million.
Key Time for Reappraisal
The changes come at a crucial point as the county is undergoing a once-every-four-year reappraisal process of every property. Those assessed values will be used to calculate taxes until the next reappraisal, pending successful appeals by owners.
“We have made several changes and improvements. Our hope is that the community will see that reappraisal is about equalization of value by estimating a new property value for all property owners as of Jan. 1, 2025,” Miller stated in an email.
Exciting Developments in Assessments
During the commissioner meeting, Miller highlighted the increased use of data, outreach to lower-income homeowners, and a focus on equity including an analysis by a private contractor to assess the impact on poorer and minority homeowners. He mentioned the addition of two new appraiser positions dedicated to luxury home assessment.
Urban planner Joe Minicozzi expressed satisfaction with the changes but emphasized the need for more frequent reappraisals and suggested publishing a list of unreported home improvements for possible back taxes.
Ensuring Fairness in Appeals
Commissioners raised concerns about wealthier property owners being more successful at appealing their assessments. County Assessor Miller assured that efforts were being made to reach out to lower-wealth homeowners and ensure they understand the appeal process.
Miller stressed the importance of providing all property owners with the necessary information to make successful appeals: “Do our higher-end properties have more success? Maybe. But I think more success comes from better information. What we want everyone to know is what to do to be successful.”
Overall, the changes in tax assessment aim to create a more equitable and fair system for property owners in the Asheville area, ensuring that taxes reflect the true value of their homes.
