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Some Orange County homeowners could pay higher tax bills this year after a nearly 50% estimated increase in the county’s property values, officials said.

“Counties are seeing large increases throughout the state,” Tax Administrator Nancy Freeman told the Orange County Board of Commissioners Tuesday. The tax office is wrapping up the 2025 revaluation, which resets home and commercial property values.

This year’s median home sales price could reach $423,000 in Hillsborough, $612,500 in Carrboro, and $660,000 in Chapel Hill, Freeman said. That’s a 43% increase for Chapel Hill since 2021, when the median sales price was $460,000.

A tax office survey of 21 counties showed property values are up 25% to 88% in the last few years, Freeman said. Counties similar to Orange County are seeing an average increase of 61%, she said.

In Johnston County, significant growth since 2019 has led to a 70.6% increase or more in the median sales price, The News & Observer has reported. Wake County property values rose an average of 53% in that revaluation last year.

Durham County officials are expecting an 80% jump in median home sales prices — to $430,500. Revaluation notices should go out this month.

Orange County will send out new tax value notices in mid-March. Public information events will follow, and the tax office will meet with the town boards in Chapel Hill, Carrboro and Hillsborough.

The county and towns will set new tax rates by June, and new tax bills will arrive in August. Property owners currently pay:

▪ Orange County: 86.29 cents per $100 in property value. A home valued at $450,000 generates a county tax bill of $3,883.05.

▪ Chapel Hill: 59.2 cents per $100 in property value. A $450,000 home generates a combined county and city tax bill of $6,547.05.

▪ Carrboro: 60.44 cents per $100 in property value. A $450,000 home generates a combined county and city tax bill of $6,602.85.

▪ Hillsborough: 60.7 cents per $100 in property value. A $450,000 home generates a combined county and city tax bill of $6,614.55.

▪ Chapel Hill-Carrboro property owners also pay a special city schools district. The tax rate is 19.8 cents, which adds $891 to the tax bill for a $450,000 home.

▪ An appraisal of residential and commercial properties countywide, based on fair market value — the price at which the property would sell on the open market.

▪ The property’s location, size, scale, and income potential — the highest and best use under current zoning — are also considered.

▪ The goal is ensuring owners of similar properties pay roughly the same tax bill.

▪ The state requires a revaluation at least every eight years, but more quickly if a county’s sales ratio grows too high or too low.

▪ The state requires counties to set a revenue-neutral property tax rate following a revaluation.

▪ The revenue-neutral rate ensures that local governments receive the same amount of tax revenue based on new market values that they collected before the revaluation.

▪ Local governments can budget around the revenue-neutral tax rate or raise it to bring in additional money.

▪ A revaluation can generate higher tax bills for some property owners, while others can see their bills reduced.

An appeals form is included with revaluation notices and also available online. Submit an appeal:

▪ By mail: Orange County Board of Equalization and Review, Orange County Tax Office, P.O. Box 8181, Hillsborough, NC 27278-8181

▪ In person: Place in lockbox at 228 S. Churton St., Hillsborough

▪ Online: https://appeals.spatialest.com/nc-orange#/

There are two appeals periods:

▪ Informal appeal: Property owners can submit a real property or personal property appeal, such as for a car or mobile home, from mid-March through April 30. Staff handles informal appeals.

▪ Formal appeal: Property owners can submit a real property appeal or a personal property appeal, such as for a car or mobile home, from May 1 through July 31. The county’s Board of Equalization and Review considers formal appeals.

▪ Board of Equalization and Review decisions can be appealed to the N.C. Property Tax Commission.

There are local and state programs — each with its own requirements — that help lower-income property owners pay their tax bills.

▪ Homestead Exclusion: Open to homeowners who are 65 and older or permanently disabled as of Jan. 1, with incomes below $37,900. Provides a discount of $25,000 or 50% of the appraised value of the home and up to an acre of land, whichever is greater. Must own your home as of Jan. 1.

▪ Circuit Breaker Tax Deferment: A tax deferment program that puts a lien on your property. All owners of the property have to be approved and cannot earn more than $56,850 a year in 2025. Taxes from the last three years of program participation must be repaid if the owner dies, is later disqualified, or stops using the home as their permanent residence.

▪ Disabled Veteran Exclusion: Available to honorably discharged veterans from any military branch who get their disability documented through the Veterans Administration. Offers a $45,000 tax discount. Applications are due before June 1 each year.

▪ Longtime Homeowners Assistance Program: A tax relief program for Orange County and Chapel Hill property owners who have lived in their home for at least five years, earn no more than 80% of the area median income for their household size, and own a home worth less than the county’s annual property value limit.

There may be exceptions for households that also include a person age 70 or older or someone who is disabled.

This story was originally published February 26, 2025 at 8:28 AM.

TG

The News & Observer

919-829-8926

Tammy Grubb has written about Orange County’s politics, people and government since 2010. She is a UNC-Chapel Hill alumna and has lived and worked in the Triangle for over 30 years.

The future Hillsborough Station is currently set to be completed in 2027, but the town might have to wait a little longer before it comes into fruition. The Orange County Board of Commissioners recently met with the Town of Hillsborough to hear the latest updates.

The 20 acre site — located between Gold Hill Way and the North Carolina Railroad tracks — could be a new heart for the town, according to Hillsborough’s Public Space and Sustainability Manager Stephanie Trueblood.

“In the past, Hillsborough’s always been thought of as a historic downtown,” Trueblood said. “But what we’re talking about is shifting this focus to a new, higher-density, transit-oriented development area that celebrates our arts and invites people in, helps with tourism, supports local businesses.”

Served by Amtrak, the net-zero-ready passenger station would be about 8,000 square feet and include town offices, a new boardroom, and an outdoor public gathering space in addition to its platform and ticketing area.

The town first prepared a concept plan for the project in 2016, later contracting Clearscapes to lead the design team in 2022. Along with parking and EV charging stations, the facility would also allow for multimodal transportation to Hillsborough’s downtown by way of the Ridgewalk Greenway. The station’s construction is set to be completed in February 2027, but Trueblood said that date will likely be extended.

Although Hillsborough approved the site plan in August, the North Carolina Railroad (NCRR) and Northfolk Southern (NS) cannot review it until the town executes a preliminary engineering agreement. However, Trueblood explained how there cannot be a PE agreement until indemnification and insurance terms are developed and approved.

“We are third in line for that. There’s sort of an unspoken rule that Northfolk Southern reviews one set of plans at a time in North Carolina. So Kannapolis and Salisbury are just ahead of us. They are currently negotiating their terms with the railroad. And I think they’re getting close to an agreement.”

In accordance with the Town’s Comprehensive Sustainability Plan, a third of the site will be set aside for affordable housing. On the remaining acreage, there is potential for complementary residential and nonresidential transit-related development, like commercial space and either a multi-modal transportation center (MMC) and/or a performing arts venue.

The latter is something Hillsborough has a huge need for, according to Orange County Arts Commission Director Katie Murray.

“What I do know is the Eno Arts Mill has provided a lot of great visual arts space or artist studios or gallery or classroom, but even after just three and a half years we’re already busting at the seams,” she said at the February 17 meeting.

Murray said local artists deserve a purpose-built space to perform and host classes, citing how a lot of groups have to use schools and churches right now. And the venue could bring outside audiences who will spend money in town, she added.

And the MMC could provide additional amenities for pedestrians and cyclists utilizing the greenway. While neither board has expressed official support for either use, Trueblood said the two options are compatible. The biggest challenge is figuring out cost and partnerships, she added.

The current project cost is about $8 million, and it is partially funded through a 2016 Transportation Improvement Program grant. In 2020, Hillsborough also signed a funding agreement with the North Carolina Department of Transportation and GoTriangle.

With support from town staff, Orange County is also seeking additional funding for the multimodal hub through a USDOT grant, among other avenues. Hillsborough Commissioner Kathleen Ferguson stressed how those plan b’s will be essential, as the project is “just too important” not to have them.

“We did confirm that at least both our senators are very supportive of economic development when it’s framed that way,” Ferguson said. “I hope we are utilizing that in terms of federal asks. With all of this, I hope we are considering that.”

To view the full Orange County Board of Commissioners and Town of Hillsborough meeting, click here.

Featured image via the Town of Hillsborough.

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