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Frequently Asked Questions

What Is Taxable Property?

Personal Property

Personal property includes motor vehicles, boats, campers, trailers, singlewide mobile homes with wheels & axle attached and airplanes. Anyone who owns any of these items on January 1, (excluding licensed motor vehicles) must list them with the Tax Department during the month of January each year. If a property tax listing form, also known as an abstract of taxable property, is not received in the mail, please call our office at (910) 798-7300 to request one. A 10% late listing penalty will be charged for anyone not listing their required property with the Tax Department before the January 31st deadline. If January 31st falls on a weekend the next business day will be the deadline.

Licensed Motor Vehicles

Licensed motor vehicles and trailers are listed automatically when you first register or renew your motor vehicle or trailer registration through the North Carolina Department of Motor Vehicles (DMV). Each month the DMV sends to every county tax office, a list of taxpayers in their county who have registered a motor vehicle or a trailer. A licensed trailer includes any trailer that requires a registration, such as boat trailers, animal trailers, utility trailers, camping trailers and motor homes. Taxpayers receive a separate tax bill for each licensed motor vehicle or trailer which is due the 4th month following registration.

The following chart will identify the month of registration for a vehicle and the month the taxes will be due:

Business Personal Property

Business personal property includes machinery, computer/office equipment, airplanes, unlicensed vehicles, leasehold improvements, leased equipment, supplies, furniture, fixtures, farm equipment, etc. which are used for a business. Listings must be submitted during the month of January to avoid a 10% late listing penalty. However, an extension can be granted until March 15, if the request is made in writing and is postmarked or hand delivered to the Tax Department by January 31^st or if January 31st falls on a weekend the first business day following the 31st. Business property statements are mailed to all business' who listed the previous year or for anyone who has requested a form. If you have business personal property, and do not receive a listing form, please call the Info Center at (910) 798-7300 and request a form be mailed to you.

Real Property

Real property includes any structures or improvements on land including doublewide and single-wide mobile homes on the land of the same owner with it's wheels & axles removed. You do not have to list real property each year only improvements made to the property. Real Property is permanently listed in New Hanover County so you no longer have to list real property each year.  However, you must still list improvements made to the property. 

Any improvements made during the previous year must be listed during the regular listing period which is the month of January.  If you have made improvements to your property and did not receive an abstract, a form can be requested by calling (910) 798-7300 or you can write to the Tax Administrator's office and ask us to list for you. This letter must include your name and mailing address, the address of the property, the type of improvement made and the percentage of work completed as of January 1. Someone from the appraisal office will visit your property and identify improvements which have been made. That information will be entered into the tax data base to calculate a value using the adopted schedule of values in effect for the most recent revaluation.

The effective date of our current revaluation is January 1, 2007.  Anytime we make a change in your value, you will be notified in writing. If you do not agree with this value, you should contact our Information Center at (910) 798-7300 and they will arrange for you to discuss your value with an appraiser.  The next  revaluation is scheduled to become effective on January 1, 2012.

You may appeal your value in any year between January 1 and the adjournment of the Board of Equalization and Review.  The Board of Equalization and Review meets between the first Monday in April and the first Monday in May of each year.

How is Property Valued?

Personal Property

Personal property and real property are valued by using different methods. Personal property such as singlewide mobile homes, campers, boats and trailers are valued according to size, model and year. We use pricing guides to give us a fair market value of this property as of January 1st each year. These properties must be listed each January by the owner.

Motor Vehicles

Motor vehicles are valued by year, make and model in accordance with the "NC Vehicle Valuation Manual" which is used by all 100 Counties in North Carolina. A vehicle value is assigned as of January 1^st preceding the month in which the tax bill is due. For example, if you receive a vehicle tax bill due in October, 2007, the value placed on the vehicle is the market value as of January 1^st, 2007.

Business Personal Property

Business personal property such as computer/office equipment, machinery, farm equipment or any other machinery and equipment that is used in a business, is valued on a cost basis using "Trending Schedules" developed by the NC Department of Revenue. Trending schedules depict replacement cost new less depreciation.

Real Property

Every 4 years, the New Hanover County Tax Department completes a reappraisal of all real property in the county. This process is called "Revaluation" or the short term is "Reval". The purpose of a revaluation is to comply with North Carolina General Statutes which require property to be valued, or appraised, at its current market value at least every eight years and to ensure all taxpayers are taxed fairly and equitably. Values are placed on real property using either one or a combination of the following appraisal approaches:

• The sales comparison or market approach. This approach compares the selling prices of similar properties and places a value on those properties based on actual selling prices close to the date of the last revaluation. This approach is the most accurate when there are a number of sales occurring and must have occurred at the time of or before revaluation.
• Cost approach. Values are determined on what it would cost to replace a similar property at current building costs minus depreciation based on a variety of factors and the age of the property. This approach is best used for unique properties or newer construction.
• Income approach. This approach is used primarily on income producing properties such as apartment buildings or business offices. Revenues are analyzed to determine a net operating income. This income is then capitalized to determine a value for the property.

Revaluation - What Is It And Why Have It?

Revaluation is a systematic, in depth process using a Computer Aided Mass Appraisal (CAMA) system to reappraise or reassess all real property in the County to the current market value. (Appraised value and assessed value can be used interchangeably in North Carolina because property is required to be assessed at 100% of its appraised value.) The real estate market is one of constant change caused by the freedom we have to buy and sell property. This change can vary greatly depending on a property's size, type and location. This can create an inequitable situation in the level of assessment among owners of property and inequity among differing types of property.

The longer this situation exists, the more unjust it becomes. The end result is an unfair tax burden on those properties which have an assessed value close to the actual market value compared to those properties whose assessed value is well below market value. The relationship between assessed, or tax value, and market value is called the sales/assessment ratio.

A countywide revaluation is an enormous and complex task. We are fortunate to have a qualified and knowledgeable in-house appraisal team in New Hanover County. They are all residents of the local area who are very familiar with property in this County. They have made every effort to consider the many factors involved in determining property values through the completion of the revaluation process. Field inspections are conducted, sales files are developed and analyzed and market trends continually monitored. Contacts are made with property owners, local realtors, building contractors, building suppliers and home lending institutions, all for the purpose of being as knowledgeable as possible about property values.

What if I Disagree with my value?

Of course, no matter how thorough and fair a revaluation may be, there are still instances when only the property owner has all the information necessary for an accurate appraisal. That is why there is a relatively easy appeal process. First, complete the appeal form received with the revaluation notice and return it to the Appraisal Office. The appraiser responsible for your area will discuss your concerns after reviewing the back-up used during the revaluation of your property. We willl make any corrections that are appropriate based on the review or make no changes. You have the right to appeal that decision, in writing, to the Appraisal Supervisor, who will review the file and respond to you with the results of that review. If you still do not agree with the value you will be provided a "Valuation Complaint Form", from the Appraisal Office, to complete. This will be an appeal to the New Hanover County Board of Equalization and Review which appointed by the Board of County Commissioners. Appeals must be submitted prior to the convening of the Board of Equalization and Review which meets between the first Monday in April and the first Monday in May. It is incumbent upon the appellant to prove that the assigned value is incorrect.

If you are still dissatisfied with your property value after being heard by the Board of Equalization and Review, the next step is to appeal to the North Carolina Property Tax Commission in Raleigh. Very rarely is this step required. From the Property Tax Commission, you may appeal to the North Carolina Court of Appeals and finally to the North Carolina supreme Court. Again, these appeals are very rare since every effort is made by the Tax department to resolve our issue locally among people who are most familiar with property values in New Hanover County.

Are There Any Exemptions or Special Programs?

Yes, under certain circumstances, you may be eligible for reduced taxes if you meet the requirements specified in the North Carolina General Statutes. A brief description and the basic requirements are described under this section.

Tax Relief for Elderly and Permanently Disabled ("Homestead Exemption")

Property tax laws exclude the greater of $25,000 or 50% of the value of your home and land up to and including 1 acre of land from the total assessed value of property owned by residents of North Carolina who reside in this residence and who meet the following requirements:

• Must be 65 years old or older, or totally and permanently disabled. (If not 65 years old or older, but permanently disabled, you will need certification from a physician licensed to practice medicine in North Carolina. It is essential that the certificate state your disability is total and permanent. This form will be supplied by the Tax Office).
  
• Total annual income coming into the home must not exceed $25,000. (income is defined as all money coming into your home except inheritances received from a spouse, ancestor or descendant or gifts. For married applicants residing with their spouses, the income of both spouses must be included even if only one is an owner of the property.)

Anyone who meets these requirements can request an exclusion form by calling 798-7300. Applications should be filed prior to June 1 to insure the exclusion is granted for the current tax year.

If the June 1st deadline is missed, you may still return the form and appropriate information to our office. We will be required to submit your application to the Board of County Commissioners for their approval. You will need to write a letter, addressed to the Board of County Commissioners, explaining why the form is late. Our office has prepared a general letter you will have to sign if you would rather use this. You can request this letter from our Infor Center when you come in or request the form if it is after June 1. Your information will then be submitted to the Board of County Commissioners for their approval.

Exempt Property

North Carolina General Statutes allow for certain types of property to be exempt from property taxes if they meet the requirements specified by the statutes. Some types of exempt property may include but are not limited to the following:

• Property used for religious purposes.
• Property set aside for burial.
• Property used for educational, scientific or literary purposes.
• Property used for charitable purposes.

To apply for an exemption, an application must be filed with the Tax Administrator during the regular listing period, which is the month of January. To receive an application or learn more about exempt property, please call 798-7300.

Land Use Programs

The North Carolina General Assembly enacted the "Land Use Program," which allows reduced tax values for individually owned property used for agriculture, horticulture or forestry. Basic eligibility requirements follow:

• Agriculture: Agricultural land consisting of one or more tracts, one of which consists of at least 10 acres that is in actual agricultural production and that, for the 3 years preceding January 1 of the year for which the benefit is claimed, has produced an average gross income of at least $1000.
• Horticulture: Land consisting of one or more tracts, one of which consists of at least five acres that is in actual production and that, for the three years preceding January of the year the benefit is claimed, has either produced an average gross income of $1,000 or been used to produce evergreens intended for use as Christmas trees and meet gross income requirements.
• Forestry: Forestland consisting of one or more tracts, one of which consists of at least 20 acres that is in actual production and are not included in a farm unit. A forestry management plan is required. To apply for the Land Use Program, or learn more about eligibility requirements, contact our office at (910) 798-7300.

Tax Rates - How Are Taxes Determined?

The responsibility of the Tax Department is to value all taxable property in the county. The total value of all the property in the county is called the tax base. Each county agency and/or department submits an annual operating budget to our County Budget Department. This information is forwarded to the County Manager who submits a recommended total budget to the County Commissioners for their consideration. The Board of Commissioners, along with the Budget Department and the County Manager, review the budget and the tax base to determine a recommended tax rate. This is also done to establish a fire district tax. Of course, this process is not as simple as it sounds, many hours are spent analyzing the departmental budgets, county programs, and outside agencies to arrive at a budget that will provide services to the citizens of New Hanover County.

Each municipality completes a similar process. The whole process is usually completed by the end of June and the county commissioners and town boards establish new tax rates by July 1. Once the tax rates are established, taxpayers receive a consolidated tax bill, usually in August, which includes their county and fire district tax if their taxable property is only within the county boundaries, or their county and municipality taxes which are the City of Wilmington, Kure Beach, Carolina Beach, and Wrightsville Beach, depending on the location of the property.

When is the Annual Required Listing Period?

The month of January is the annual required listing period. Anyone who does not list their taxable personal property (see section "What is Taxable Property") by January 31st will be charged a 10% late list fee. January 1 is the established date for determining property value and ownership. Everyone pays property taxes for the whole year based on what they own on January 1, with the exception of motor vehicles and trailers registered with the NC Department of Motor Vehicles. Vehicle taxes can be prorated when the vehicle is sold or a taxpayer moves out of state and surrenders their license plate to the NCDMV. All ofther taxes are not prorated or released because you relocate within or out of North Carolina or dispose of the property anytime after January 1. The full amount of tax is due for the entire year based on ownership and property value as of January 1 of the current year. You list in one county each year. If you move to another county in North Carolina after January 1, you will not file a "Property Tax Listing" form in that county until the following January.

VEHICLES

When will I receive a bill?

Motor vehicle bills are mailed approximately three months after the license plate has been issued or renewed.

My value is too high, how do I appeal?

All vehicle values must be appealed informally in writing within 30 days of the date of the notice. Grounds for appeal would be, but are not limited to, excessive damage, poor condition or excessive mileage. Proof must be submitted to prove the condition of the vehicle as of January 1.

I don’t own this vehicle any longer. Why did I get a bill?

You are billed for the vehicle you owned on the date of registration. If you have purchased a new vehicle and transferred your tags from the old vehicle to the new one, the tax on the old vehicle would be due in full. You would not receive a tax bill on the new vehicle until you renew your registration again the following year. However, if you sold your vehicle AND surrendered the use of the plate, send a copy of the receipt from DMV and proof that you are no longer the owner of the vehicle to the Tax Department within 1 year of surrendering the license plate. You may qualify for a release or refund if your tax bill has been paid. This release or refund would be based on the number of full months remaining valid on the license plate.

DMV has blocked my registration renewal. What should I do?

If your vehicle taxes become delinquent our office will notify the DMV and a block on your registration will be issued. You will not be able to renew your registration until the bill is paid in full. Once the bill and any other past due tax bills with your name on them are satisfied, our office will issue you a receipt which must be taken to the DMV office to renew your registration. DMV will release the block and you will then be allowed to renew your registration.

REAL ESTATE

When will I receive a bill?

Tax notices (bills) are mailed in August each year and are due on September 1^st but payable until January 5th (the next business day if the 5th falls on a weekend) of the next year to avoid legal action. Partial payments are accepted prior to the delinquent date. Interest begins January 5th at a rate of 2% and increases by 3/4% each month thereafter. Delinquent taxes are subject to immediate garnishment, foreclosure, or seizure of property. Unpaid taxes are advertised during the month of March.

What if I buy/sell property during the year?

The owner of personal property (see explanation under Personal Property above) as of January 1^st of the current tax year is responsible for taxes for the entire year. Real estate taxes are not pro rated either but are usually handled between the buyer and seller at the time of closing. You should refer to your closing statement to see if provisions for property taxes were made at that time. Most attorneys pro rate the taxes on real estate on a calendar year basis and depending on the time of year the closing is processed determines whether the taxes are paid to the tax department directly or if the seller pays the buyer their portion of the taxes and then the buyer is responsible for payment of the entire tax bill to the tax office. The tax bill is sent to the owner of record when the bills are processed. The January 1st owner's name will appear on the tax bill but it will be sent to the new owner if there is a change in ownership. The reason for sending the new owner the bill is if these taxes are not paid, a lien is placed on the property and any action as described above will be taken against the current owner.

PROPERTY TAX PAYMENTS

Where can I pay my taxes?

The most convenient way to pay your taxes is by mail. You can send your payments to the post office box in Charlotte which is on the bill you receive in the mail, or mail them directly New Hanover County Tax Office, PO Box 18000, Wilmington, N.C. 28406. You may also pay your bills in person in our Collections Office, at the above address, between the hours of 7:30 am and 5:00 pm Monday through Friday.

Do you accept debit or credit card payments?

We do not accept debit or credit card payments at our office. You may pay your tax bills by credit card to Official Payments. To pay by credit card you can either call 1-800-2PAY-TAX (1-800-272-9829) or visit them at www.officialpayments.com. There is a convenience fee for this service that is collected by Official Payments.