PENDER COUNTY — Almost two years after Pender County commissioners changed their property tax revaluation process to take place every four years, a new board has opted to go back to a seven-year cycle.
READ MORE: Pender County bumps next tax revaluation to 2026, cuts time between future appraisals
Commissioners voted March 10 in a 3-1 decision to confirm the changes, but it won’t go into effect until 2030. Pender County is in a seven-year revaluation cycle, which began in 2019 and is set to end in 2026.
The North Carolina Department of Revenue requires a property revaluation at least once every eight years by law. Currently, 51 out of 100 North Carolina counties are on four-year revaluation cycles.
In 2023, a different board of commissioners voted to move it to four years, in line with other surrounding counties, such as New Hanover. That would take place from 2026-2030. According to previous PCD reporting, their reasoning for the change included:
- It makes taxes more fair by shifting burden off low-growth areas
- Tax values will be closer to market value
- A four-year cycle better reflects changes in a rapidly growing county like Pender
- Less “sticker shock” when property value changes
These sentiments were echoed by Pender County Tax Administrator Melissa Radke, who presented to the Pender commissioners on Feb. 18, suggesting they stay in a four-year cycle.
However, commissioner Jerry Groves put forth the motion to change it back to seven, adding he also wanted to honor the previous board’s vote for the upcoming cycle and therefore asked for the seven years to begin in 2030. Field work has already begun on 2026 appraisals.
Groves told Port City Daily Wednesday changes to the revaluation were brought forth again because of residents reaching out to complain to commissioners.
“It’s just a way for the appraisers to make more money,” Groves said on the phone call.
Radke suggested a shorter cycle because of the commercial and personal property growth in the county.
According to 2020 data from Cape Fear Realtors, the Pender County median home sale price in 2020 was $330,214. As of December 2024, reports indicate the median home sales prices increased to $475,000 — 44% over four years.
The report for the 2024-2025 fiscal year budget in Pender County states the largest portion of revenue generated for the county is from appraised value tax revenue. It’s estimated that the county gathered $71.4 million for the general fund from 2024 property tax levies.
Radke told commissioners continuing with a four-year cycle was beneficial, in that it keeps the revaluation closer in line with market values.
“Obviously, we have to look at the cost of revaluation,” she voiced to the board in February, acknowledging Groves’ concern.
Yet, the tax administrator’s office estimates over the course of an eight-year reappraisal cycle, the county would be leaving an additional $2.2 million on the table from “equalizing” public service companies over the additional four-year period.
Service companies like Duke’s Energy or Verizon pay taxes to the county but they are assessed by the state. In order to get the correct value of taxes owed, the state has to retrieve data from Pender County, which includes the properties’ current assessed values — as determined by the last reappraisal — and the current market prices.
The North Carolina Department of Revenue looks at the county’s sales ratio — or relationship between a property’s assessed value and the actual current market sales price — the fourth and seventh year after a reappraisal. The service companies pay taxes based on those numbers.
Because values are only adjusted once every seven years, the relationship between that current assessed value and the sales price (or sales ratio) may be below the 90% threshold. If the sales ratio dips below 90%, state statute requires NCDOR to “equalize” the public service company values, so the companies aren’t paying 100% of current market value — since they are valued annually — when county property owners aren’t.
Radke stated: “In a four-year cycle, you don’t have to worry about equalization. The county will always get 100% of that value from those companies.”
The county contracts surveyors for roughly $2.2 million to conduct the physical revaluation process, which consists of measuring parcels and evaluating changes to property, to assess its market value.
“At our highest point, we had about 18 field appraisers,” Radke said in a phone call Tuesday. “They are paying for their own gas, the personnel, the training.”
There are 54,000 parcels countywide, so that’s around 6,000 per appraiser and it takes two years to complete.
Concerned Hampstead resident Jim Harris spoke at the March 10 meeting and suggested a different approach to the revaluation.
“Why can’t we use a non-physical expression or examination of properties in order to come up with market value or some percentage of market value as a base rate?” he said. “I think that would be an extremely cost-effective approach to take based on that it costs $2 million per physical revaluation cycle.”
Chair Commissioner Randy Burton voted in favor of returning to the seven-year revaluation cycle due to the financial burden it puts on the county.
“I think it just makes more sense,” he said in a Tuesday phone call with PCD. “The revaluation cost of $2.2 million is high for every cycle.”
Commissioner Brent Springer also voted in favor of the motion for the same reasons.
“We’re gonna save $4.4 million dollars by doing that,” Groves said during his motion to switch it back.
Finance director Meg Blue questioned where Groves was coming up with saving $4.4 million. She emphasized that the county has to pay $2.2 million for revaluations in 2026 and again in 2030. However, by waiting seven years on a revaluation would also equate a loss.
“We would have also lost $2.2 [million] in those four years without having done it,” Blue explained.
Groves retorted: “I disagree with you — if we keep up with the permits and the tax office does what they’re supposed to do.”
Blue said permitting does not have any impact on the reappraisal.
The Pender County Tax Department is responsible for ensuring all properties are listed accurately and that property values align fairly with the current market. The tax value of properties is dependent on what the market indicates about property sales prices.
Many people associate revaluations with property taxes also increasing, but that’s not always the case. This, too, was broached at the meeting.
“The tax department, again, is not the deciding factor in what amount you’re paying,” Radke noted to residents. “That has to be incorporated with the tax rate set by the board.”
Commissioner Springer agreed and told Port City Daily: “If values of the homes go up, then taxes need to come down.”
Burton questioned when the last time the board voted to lower the tax rate.
In 2019, following the last revaluation cycle, it was decreased by 4.5 cents due to escalated property values.
According to previous PCD reporting, Pender County’s tax rate increased in 2023-2024 fiscal year by 9.25 cents from 64.5 cents to 73.75 cents to cover the $178-million Pender County school bond. It remained the same in the 2024-2025 fiscal year.
Commissioner Brad George was the only dissenting vote against walking back the revaluation cycle to seven years. Port City Daily reached out to George for comment but did not hear back by press.
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