County staff outline mandatory reappraisal and calculate a 39.22¢ revenue‑neutral tax rate

County staff and the property assessor detailed a statutorily required countywide reappraisal and showed how that data feeds the FY27 budget process. At a Buncombe County budget work session, Property Assessor Eric Kreger said the Department of Revenue notified the county that assessments were out of the state’s acceptable band and required a reappraisal for the 2026 assessment date. "We received a notice from the Department of Revenue, saying that we were to do a reappraise on 01/01/2026," Kreger said.

Kreger explained reappraisal “activates the real estate market” in assessments and reflects sales over a multi‑year period rather than a one‑year change. He noted Buncombe County has about 135,000 parcels and that residential property comprises roughly 70–76% of the tax base, with commercial parcels representing about 6% of parcels but a larger share of value.

Using the FY26 property tax revenue base ($293,034,735) and the county’s new estimated assessed value of about $76.8 billion, county staff calculated a revenue‑neutral tax rate of 39.22¢ per $100 of assessed value. Staff reported the 4‑year average natural tax‑base growth factor is 2.74%, which they applied to the FY26 revenue before dividing by the new assessed value. "That is the revenue neutral rate," John (county staff lead) said. He added that the manager’s recommended tax rate had not yet been set.

Staff cautioned that the revenue calculation represents 100% of expected property tax receipts before applying a collection rate; the budget uses a projected collection rate (presented in the packet at 99.25%) so budgeted revenue will be lower than the theoretical maximum. Commissioners asked how appeals and unfinished construction affect the final values; Kreger said partially completed developments are assessed at a percentage of completion and that appeals (staff estimated 9,500 to potentially 13,000) can reduce taxable values after billing and will be handled through staff review or, if contested, the volunteer Board of Equalization.

Why it matters: A change in the assessed base and the chosen tax rate will affect overall county revenue available for schools, public safety and services. Staff will bring a recommended rate with the manager’s budget on May 5, followed by a public hearing May 19 and adoption on June 2.

The next steps: staff will monitor appeals and refine collection‑rate assumptions before producing the manager’s recommended tax rate and the full recommended budget on May 5.