Clay County Prepares for Mandatory 2026 Property Revaluation

Clay County officials are preparing for a mandatory countywide property revaluation that will take effect Jan. 1, 2026, marking the first full reappraisal since 2018. The process is required by North Carolina law and is intended to update real property values to reflect current market conditions and ensure an equitable distribution of the property tax burden.

Commission Chairman Rob Peck emphasized that the revaluation is not designed to increase overall tax revenue. Instead, all real property—land, buildings, and improvements—will be assessed at 100 percent of fair market value as of Jan. 1, 2026. Following the revaluation, the Clay County Board of Commissioners will calculate a revenue-neutral tax rate, which is expected to decrease proportionally if property values rise, keeping total tax collections relatively stable unless the board votes otherwise.

Clay County contracted with Pearson’s Appraisal Service in 2023 to conduct the revaluation, a firm that was later acquired by Vision Government Solutions. Vision is providing data collection, modeling, and appraisal support using mass appraisal techniques based on recent sales, property characteristics, income data for commercial properties, and construction costs.

County officials stressed that commissioners do not set individual property values. That responsibility lies with the county assessor and contracted appraisers. The commissioners’ role is limited to approving the Schedule of Values—a methodology outlining how properties are appraised—and setting the final tax rate after values are established.

Property owners will be notified of their new assessed values by mail during the revaluation year and will have multiple opportunities to appeal, beginning with an informal review through the tax office and progressing, if necessary, to the Board of Equalization and Review and the state Property Tax Commission.

Officials expect property values in Clay County to increase significantly due to post-pandemic growth in the mountain real estate market but reiterated that higher values do not automatically mean higher tax bills.

Below is the full release:

2026 Property Revaluation, Clay County, NC- Information below was presented during October, 2, 2025 Clay County Board of Commissioners Meeting with copy given to the Clay County Progress at that time.

Overview of the Revaluation Process in North Carolina

In North Carolina, the property revaluation (also called reappraisal) process is a systematic update of all real property values—such as land, buildings, and improvements—to reflect current fair market value. This ensures equitable distribution of the property tax burden across taxpayers, AS REQUIRED BY STATE LAW. The process is governed by the "Machinery Act" (Subchapter II of Chapter 105 of the North Carolina General Statutes), which mandates uniform appraisal practices for all 100 counties. Personal property (e.g., vehicles, boats, business equipment) is reappraised annually, but real property revaluations occur less frequently to minimize inequities that arise from market fluctuations.

The Machinery Act specifically provides the framework for the listing, appraisal, and assessment of property, as well as the levy and collection of property taxes by counties and municipalities. It aims to ensure uniformity in property tax administration across the state.

The goal is not to increase overall tax revenue but to align assessed values with market conditions, so properties that have appreciated (or depreciated) are taxed proportionally.

Key General Statutes Which Govern the Process:

The revaluation process is primarily outlined in these statutes from Chapter 105:

§ 105-286 (Time for General Reappraisal of Real Property): Establishes the core requirement for reappraisals and the role of county commissioners.

§ 105-283 (Market Value Definition): Defines "true value in money" or market value as "the price estimated in terms of money at which the property would change hands between a willing and financially able buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of all the uses to which the property is adapted and for which it is capable of being used." This excludes non-arm's-length sales like foreclosures or family transfers.

§ 105-317 (Appraisal of Real Property; Adoption of Schedules, Standards, and Rules): Requires the county assessor to develop uniform schedules, standards, and rules for appraising real property in preparation for revaluation, including consideration of sales data, income/expenses for commercial properties, and construction costs.

§ 105-322 (Board of Equalization and Review): Governs the appeal process through the county's Board of Equalization and Review (BER), which typically consists of the county commissioners or a special board they appoint.

These statutes are enforced by the North Carolina Department of Revenue (NCDOR), which monitors county compliance through sales assessment ratios (the ratio of assessed values to actual sales prices). If a county's ratio falls below 95% (or 90% in some cases for larger counties), a revaluation may be mandated sooner.

Clay County contracted with Pearson’s Appraisal Service Inc, on June 28, 2023. They started the field review in October of 2023. Pearson was purchased by Vision Government Solutions in late 2024.

Vision Government Solutions is a leading government technology firm specializing in property tax appraisal software and services for local government organizations across the United States. Founded in 1975 and headquartered in Hudson, Massachusetts, the company provides innovative Computer-Assisted Mass Appraisal (CAMA) software and appraisal services to over 450 communities, ranging from small jurisdictions with a few hundred parcels to major cities like New York City and Washington, D.C.

The company conducts property reassessments, data collection, and valuation services, ensuring compliance with state regulations. Vision employs over 160 appraisal staff members, with an average of over 20 years of experience, and has completed more than 1,500 appraisal projects across 10 states.

Requirements for Revaluation

• Frequency: Counties must reappraise all real property at least once every 8 years. More frequent revaluations (e.g., every 4 years, 3 years, or even annually) are permitted if adopted by resolution of the county board of commissioners, often in response to rapid growth or market shifts.

• Valuation Standard: All real property must be appraised at 100% of its market value as of January 1 of the revaluation year. This is a "mass appraisal" process using statistical methods, not individual inspections, based on:

o Recent arm's-length sales data.

o Property characteristics (e.g., size, condition, location).

o Income/expense data for income-producing properties.

o Construction costs and depreciation schedules.

Schedule of Values (SOV): Before revaluation, the county assessor must create an SOV outlining valuation methods (e.g., cost, sales comparison, income approaches). This must be approved by the county board of commissioners and published in a local newspaper at least 7 days before it can be challenged.

Public Notice and Transparency: Counties must notify property owners of new values by mail (typically in February–April of the revaluation year). The effective date is January 1, and values apply to tax bills issued that year.

Data Collection and Review: Appraisers (often contracted firms like Pearson's Appraisal Service) use tools like aerial imagery, street-level photos, and field visits to verify property cards. The NCDOR certifies appraisers, and counties must maintain certified staff for oversight.

Equity and Uniformity: The process must ensure values are equitable across property classes (e.g., residential vs. commercial) and neighborhoods. Post-revaluation, the county must conduct ratio studies to validate accuracy.

The Revaluation Process Step-by-Step

1. Planning and Data Gathering (1–2 Years Before Effective Date): The county assessor collects sales data, aerial photos, and property records. An external appraiser may be hired.

2. Development of SOV: Assessor proposes valuation rules; board of commissioners approves after public input.

3. Appraisal Phase: Mass appraisals are performed using market analysis. Field reviews verify characteristics.

4. Review and Certification: Values are audited by county staff and NCDOR for compliance.

5. Notices Mailed: Owners receive abstract notices with new values (must be sent by April 1 in revaluation years).

6. Informal Appeals: Owners can request informal reviews with the assessor within 30 days.

7. Formal Appeals: If unresolved, appeal to the BER by May 15 (or later in revaluation years). The BER hears evidence and decides by December 1 (extendable).

8. Final Implementation: Values are finalized for tax billing (summer). Further appeals go to the NC Property Tax Commission within 30 days of BER decision.

Statutory Authority of the County Board of Commissioners

1. The board of county commissioners holds significant oversight but DOES NOT DIRECTLY SET INDIVIDUAL PROPERTY VALUES—that's the assessor's role. Their authority includes:

2. Adopting Resolutions for Frequency: They can shorten the 8-year cycle (e.g., Wake County adopted a 3-year cycle in 2025, transitioning to 2 years).

3. Approving the SOV: They review and approve the assessor's proposed schedules, standards, and rules before revaluation begins (§ 105-317).

4. Appointing the BER: The board typically serves as the BER or appoints a special citizen board. They designate the chair and can allow appeals from the special BER to themselves (§ 105-322).

5. Setting Tax Rates: Post-revaluation, they set the county tax rate (e.g., potentially lowering it to offset value increases), which determines final bills. They have no authority to alter individual values except through BER appeals.

6. Post-Review Changes: After BER adjournment, they can authorize limited changes (e.g., for errors) but not widespread adjustments (§ 105-322).

7. Budget and Contracting: They approve funding and contracts for appraisers.

This structure balances local control with state-mandated uniformity.

COMMISSIONERS ROLE IS LIMITED TO RATES, NOT VALUES!

Appeal Process

Taxpayers have multiple layers of recourse:

1. Informal Review: Contact the assessor within 30 days of notice.

2. BER Appeal: File by May 15 (extendable); taxpayer bears burden of proof. Virtual or in-person hearings.

3. Property Tax Commission: Appeal BER decisions within 30 days; formal evidentiary hearings in Raleigh.

4. Judicial Review: Further appeals to NC Court of Appeals or Supreme Court.

Schedule of Values:

The Schedule of Values, Standards, and Rules (SOV) in North Carolina is a statutory requirement under N.C. Gen. Stat. § 105-317 and serves as the blueprint for how every parcel of real property in a county will be appraised during a general revaluation. It is the assessor’s technical manual for achieving uniform, equitable, and market-based valuations across all property types.

Goal: Ensure every property is valued at 100% of true market value using uniform methods.

1. Initiation: Assessor’s Responsibility to Propose the SOV

(§ 105-317(a))

The county assessor (or contracted appraisal firm) is responsible for developing the SOV before the revaluation begins. This typically starts 12–24 months before the effective date of the revaluation (January 1 of the reval year). The SOV must be tailored to local market conditions and reflect current economic data.

2. Data Collection & Market Analysis

(§ 105-317(a)(1)–(3))

The assessor gathers and analyzes three primary types of data:

Data Type: Sales Data, Income and Expense Data, and Cost Data

3. Development of Valuation Models & Schedules

The SOV includes detailed schedules and rules for three appraisal approaches:

Cost, Sales Comparison, Income Approach (for commercial properties)

4. Draft SOV Document

The assessor compiles everything into a formal SOV document

5. Public Review & Hearing (§ 105-317(b))

The assessor presents the draft SOV to the county board of commissioners.

The board must publish a notice in a local newspaper at least 7 days before a public hearing.

At the public hearing, citizens, appraisers, and officials can comment.

The assessor may revise the SOV based on feedback.

6. Adoption by County Commissioners (§ 105-317(b))

After the hearing, the board of commissioners formally adopts the SOV by resolution.

Once adopted, the SOV becomes the legal standard for the entire revaluation.

It cannot be changed mid-reval except for clerical errors or state-mandated adjustments.

KEY: COMMISSIONERS DO NOT SET INDIVIDUAL VALUES-THEY APPROVE THE METHODOLOGY

7. Implementation in CAMA System

The SOV is programmed into the county’s CAMA software (e.g., Vision 8, Patriot, or custom systems).

Mass appraisal runs generate preliminary values for all parcels.

Field reviews and quality control ensure accuracy.

8. Post-Reval Validation

After values are mailed:

Ratio studies compare assessed values to actual sales.

NCDOR reviews and may require corrections if standards aren’t met.

Summary: Who Does What?

Role/Responsibility in SOV

County Assessor- Researches, drafts, defends SOV

Contract Appraiser (Vision)- Provides data, models, field support

Board of Commissioners- Holds hearing, adopts SOV

Public- Reviews, comments, appeals later

NCDOR- Oversees compliance, certifies process

Overview of Clay County, NC Property Revaluation for 2026

Clay County, North Carolina is undergoing a MANDATORY general revaluation (reappraisal) effective January 1, 2026. This is the county's first full revaluation in 8 years, as required by North Carolina General Statute § 105-286, which mandates reappraisals at least every 8 years to ensure property values reflect current market conditions and maintain equitable taxation. The last revaluation was in 2018, so 2026 fulfills the statutory cycle.

The process aims to update all real property values (land, buildings, improvements, and certain mobile homes on permanent foundations) to 100% of fair market value as of January 1, 2026. This does not automatically increase total county tax revenue; instead, the county must calculate a revenue-neutral tax rate (RNTR) to keep collections roughly the same, unless the Board of Commissioners votes to adjust it higher (e.g., to meet the demand of current services or for new services). Based on recent trends in similar rural NC counties (e.g., Johnston County's 55% value increase leading to a lower RNTR), Clay County values are expected to rise significantly due to post-pandemic market appreciation in mountain real estate, but the TAX RATE (currently $0.43 per $100 of assessed value) WILL LIKELY DECREASE PROPORTIONALLY.

The revaluation is overseen by the Clay County Tax Administration Office, with potential involvement from contracted appraisers. Vision Government solutions is contracted for data collection and modeling. The Board of County Commissioners (five members, elected at-large) holds ultimate authority, including approving the Schedule of Values (SOV), adopting resolutions, and setting the final tax rate.