Problem With Tax Valuation

In a decision entered February 21, 2012 (In the Matter of Appeal of Ocean Isle Palms, LLC, COA 11-1127), the North Carolina Court of Appeals reversed a decision of the North Carolina Property Tax Commission in favor of the property owner regarding tax valuation of real estate.  For several years the county had valued lots in subdivisions that did not have completed infrastructure using a sliding scale based upon an approximate percentage of infrastructure completed.  As more lots were sold without infrastructure, the county changed this method of valuation and the land owner argued that the valuation was not permitted by statute.  The tax commission agreed with the land owner, but the Court of Appeals reversed the tax commission and sent the case back for a factual determination of how the valuations were made.