Tax administrator urges Rockingham County to move revaluation to 2028, upgrade aerial imagery

At the Aug. 18 Rockingham County Board of Commissioners meeting, Tax Administrator Todd Hurst recommended advancing the county’s property revaluation schedule from the current five‑year plan (targeted for Jan. 1, 2029) to a four‑year revaluation effective Jan. 1, 2028. Hurst said state review metrics and the county’s current sales assessment ratio put Rockingham County at risk of public service company equalization that can reduce local assessed value and affect tax rates.

Hurst explained two North Carolina Department of Revenue (NCDOR) ratios that influence revaluations: the sales assessment ratio study (median of assessed value divided by sales price), and the public service company ratio that applies to state‑assessed utilities such as Duke Energy. He said Rockingham County’s current estimated sales assessment ratio is about 91% (NCDOR’s final number was expected in May 2026) and that state rules require reappraisal if the median is greater than 115% or less than 85% for counties with population over 75,000. Hurst said public service company equalization is triggered if the sales ratio drops below 90% in the fourth year, which can cause significant lost assessed value for the county.

Hurst presented recent history and a fiscal example: he said the county experienced a large loss in assessed value after the last cycle, citing about $249 million in lost assessed value and about $1.73 million in lost tax revenue in 2023 tied to state‑assessed properties. To limit similar impacts, he recommended hiring Piner Appraisal (the lowest RFP bid at $1,140,945 among bids ranging up to roughly $1,930,000) to perform the 2028 desktop reappraisal and proposed upgrading the county’s aerial imagery from a 6‑inch pixel to a 3‑inch pixel plan at an estimated one‑time cost of $179,400. Hurst said the 3‑inch flight would take place in December–January and could reduce field visits and improve accuracy.

Hurst outlined payment terms and logistics: the imagery cost of $179,400 could be paid in three annual installments of $59,800 beginning in March 2026; Piner’s desktop reappraisal bid was listed at $1,140,945; the county has an outstanding 6‑inch imagery contract balance (Hurst cited both $47,520 and later $47,005.20 in the presentation notes) that must be paid before the new flight; and the reappraisal work timeline would start in November–December 2027 with notices mailed by Feb. 1, 2028 if advanced. He also recommended retaining the appraisal consultant for major appeals during non‑revaluation years.

Commissioners asked procedural and policy questions. Commissioner Hall and others said moving the revaluation earlier would likely reduce “sticker shock” that can occur with longer cycles. Commissioners asked whether contract language could include an escape clause should state or federal policy change before work begins; a commissioner asked county staff and counsel to review escape‑clause language before any contract is executed. The chair and other commissioners indicated they were willing to delay final action and asked staff to return with contract language and options at a subsequent meeting (possible September date was discussed). No formal motion or vote to advance the revaluation was recorded.

Ending: Hurst offered to provide his presentation to commissioners by email and stressed that advancing the revaluation was a recommendation intended to reduce the county’s exposure to state equalization and to keep assessments aligned with market value.