County Urged to Address Property Tax Inequities

COLUMNS

By Michelle Cassell
Editor

*Based on interview with Delores Bailey, Executive Director of EMPOWERment Inc.

Oct. 20, 2025

Local problems, not state mandates

ORANGE COUNTY – While there is much about North Carolina’s Machinery Act that could be improved to strengthen fairness and equity in property taxation, the most pressing issues identified in Orange County are not directly related to state law.

According to Delores Bailey, Executive Director of EMPOWERment Inc., the problems stem from the Orange County Tax Office’s inconsistent application of its own Schedule of Values. This inconsistency, she said, has created a double standard in how neighborhoods are assessed—particularly historically Black communities, where property valuations do not reflect “true value” as the law requires.

The outcome has been disproportionately higher property tax increases for long-time residents compared to those in other neighborhoods with similar market conditions. “These inequities are not state-created,” Bailey said. “They can and should be fixed by the county.”

‘While there is much about the Machinery Act that could be improved and would help broader efforts for fairness and equity in property taxation, the primary issues we have identified and are tracking in Orange County are not state-created problems, nor do they require state changes to fix. They are primarily the tax office not following their Schedule of Values and applying a double-standard in how they have assessed neighborhoods, creating valuations in Historically Black neighborhoods not reflective of “true value” as the law demands and leading to vastly higher property tax increases for longtime neighbors than in other neighborhoods with similar markets. I am happy to share more about this if helpful. Having worked across several counties and done research across the state on this issue, there are tools that counties can and should use to increase vertical equity and the fairness of land valuations that have not been used in Orange County.  Furthermore, the widespread rejections of evidence-based appeals from many of these neighborhoods has increased the disparities.  These things can and should be fixed by the County,” stated Hudson Vaughn, Director, Community Justice Collaborative, in a letter to Rep. Rene Price published on Oct. 21.

What the Machinery Act is

The North Carolina Machinery Act is the state law that governs property taxation — specifically, how property values are determined, appraised, and taxed in all 100 counties.

Purpose

The Machinery Act (found mainly in Chapter 105, Articles 11–29 of the North Carolina General Statutes) establishes uniform procedures for:

• Listing taxable property
• Appraising real and personal property at market value
• Revaluing property periodically
• Applying property tax rates and exemptions
• Handling appeals and assessments

It ensures that every county uses the same framework for valuing and taxing property, even though local governments conduct the actual assessments.

Key Provisions

Market Value Requirement: All real property must be appraised at its “true value in money” — what it would sell for on the open market. Counties must apply this standard consistently to ensure fairness and impartiality.

Revaluation Cycle: Every county is required to conduct a countywide revaluation at least once every eight years, although many opt for shorter cycles to keep property values current.

Schedule of Values: Each county develops a Schedule of Values, Standards and Rules, which provides the basis for determining the value of different property types. The schedule must be approved by the Board of County Commissioners and used uniformly during the reappraisal process.

Appeals Process: Property owners who believe their property was unfairly valued can appeal to the County Assessor, then to the Board of Equalization and Review, and ultimately to the North Carolina Property Tax Commission.

Uniformity Clause: The Act requires equal treatment of similar properties, preventing favoritism or discrimination in property valuation and taxation.

⚖️ Why It Matters

The Machinery Act is designed to ensure fairness, equity, and uniformity in the application of property taxes across the state. However, as Bailey notes, local application of the Act — such as failing to follow the approved Schedule of Values — can lead to inequities that disproportionately affect certain communities.

In short, the Machinery Act sets the rules, but each county’s tax office is responsible for enforcing them properly. When they don’t, disparities arise.

Double Standard in Assessments

Bailey explained that the county’s assessment process has undervalued properties in some areas while inflating appraisals in Black neighborhoods, creating significant disparities in annual property tax bills.

“Having worked across several counties and researched this issue statewide, I’ve seen the tools available to increase vertical equity and fairness in land valuations,” she said. “Unfortunately, those tools have not been used in Orange County.”

Appeals Rejected, Disparities Widen

Bailey stated that the widespread rejection of residents’ evidence-based appeals in affected neighborhoods has exacerbated existing inequities.

“People have come forward with solid, documented evidence that their properties were overvalued, yet those appeals were largely dismissed,” she said. “That only increases the sense of unfairness and erodes trust in the process.”

County Reviews Underway

Orange County has begun reviewing neighborhoods to determine potential adjustments to valuations. Bailey noted that analyses conducted by her organization and partners have revealed an estimated $2 million overburden on several historically Black neighborhoods due to the unfair revaluation.

“The commissioners I’ve spoken with seem committed to fixing what they can,” Bailey said. “We are encouraged that the county is now taking a closer look at these neighborhoods.”

She also expressed appreciation for state leaders engaged in the issue.
“Rep. Price, you are correct about the working group. Several of us are serving on that group, and we are glad to see that happening,” Bailey said. “Having the two of you check in as Mr. Holman suggested is always helpful.”

Tools for Fairness Go Unused

Bailey emphasized that counties already have tools available to ensure property assessments are fair and consistent across property types—known as vertical equity—but Orange County has not implemented those methods.

“These are administrative changes that don’t require state approval,” she said. “They just require the will to use the tools that already exist to make assessments fair for everyone.”

Legislative Relief Measures Stalled

Bailey also called attention to the need for state-level property tax relief, citing several bills introduced this year, including Senate Bill 349, which would offer meaningful assistance to homeowners burdened by escalating property taxes.

“There have been a multitude of property tax relief bills filed this year,” she said. “They seem popular and even have the support of the commissioners’ association, yet they seem to hit a bottleneck somewhere. It would be great to understand how to support those bills to make it through.”

A Call for Continued Collaboration

Bailey said she looks forward to continued collaboration among county leaders, state representatives, and community organizations to restore fairness and accountability to the property tax system.

“After your next session, it would be helpful to connect around property tax relief bills,” she said. “We appreciate your continued attention and partnership in ensuring fairness for all Orange County residents.”

Orange County Property Tax Justice Coalition stated its case

The Orange County Property Tax Justice Coalition is made up of community organizers from historically Black neighborhoods across Orange County, including Councilville, Mars Hill, Fairview, Rogers Road, Piney Grove, Efland-Cheeks, Cedar Grove, Northside, Pine Knolls, Tin Top, and Glosson/Davie Rd. The coalition is supported by The Marian Cheek Jackson Center, The Rogers-Eubanks Neighborhood Association, Justice United, Habitat for Humanity, and The Community Justice Collaborative of the NC Housing Coalition. The Orange County Property Tax Justice Coalition supported over 250 property tax appeals in historically Black neighborhoods throughout the County. With support from the NC Housing Coalition and Dataworks NC, we have also conducted a property tax equity analysis to examine broader issues of fairness and equity in current valuations and to advocate for the tax office to correct these systemic inequities. 

This information was presented in a meeting hosted by the Orange County Property Tax Justice Coalition in May 2025:

Here are a few examples that bring this broader inequity into the light:

• An encumbered lot with a Pee Wee Home in the Historically Black neighborhood of Northside has a higher tax value than an acre of developable land on the east side of campus on Boundary Street. 
• A 3,750 square foot home built last year with the same tax value as a 975 square foot Black-owned property just doors down. 
• Eight acres of land in Rogers Road has a higher tax value than 100 acres owned by the Chapel Hill Country Club.

Michelle Cassell is a seasoned reporter who has covered everything from crime to hurricanes and local politics to human interest over the course of 35 years. As editor, she hopes to encourage writers of a wide range of backgrounds and interests in TLR’s coverage of Southern Orange County news. This reporter can be reached at: Information@TheLocalReporter.press.