Surry supervisors retain Wingate for ‘limited’ reassessment contract
Published 5:32 pm Monday, September 16, 2024
Surry County supervisors voted 4-1 on Sept. 12 to approve a contract with Roanoke-based Wingate Appraisal Service for what supervisors have termed a “limited scope reassessment” of property values.
The reassessment may cause some homeowners to see an increase in the amount owed on their county real estate tax bills.
Wingate, which has performed reassessments for Surry since 1979, was the only bidder deemed responsive to the county’s August solicitation of bids, according to County Administrator Melissa Rollins. The adopted contract specifies a price “not to exceed” $180,000.
A limited scope reassessment looks solely at recent sales, rather than sending an appraiser to each house, to determine which types of real estate are selling at higher-than-assessed prices, then adjusts those homes’ real estate tax assessments accordingly. Commissioner of the Revenue Jonathan Judkins told supervisors in August that when Wingate last performed a limited scope reassessment for Surry in 2023, tax assessments were within 97% of sale prices. By July, that percentage had fallen to 88%, meaning sale prices are roughly nine percentage points higher than last year.
Dendron District Supervisor Amy Drewry cast the dissenting vote. She’d previously voted in August against soliciting bids, questioning the need for another reassessment. She asserted last month, and Judkins confirmed, that many municipalities collect public service corporation taxes at an 80% to 89% “sales ratio,” as the percentage is termed.
“This reassessment will raise taxes for those whose properties are valued at less than $350,000, which means many seniors and those who can least afford it,” Drewry told The Smithfield Times following the vote. “As a county we should be helping these neighbors. I voted no on the reassessment and in good conscience could not vote to fund it.”
The sales ratio has a direct impact on the amount of tax revenue the county receives not only from real estate owners but also public service corporations.
Certain types of real estate such as Dominion Energy’s Surry nuclear power plant pay public service corporation taxes that are calculated by the state based on a locality’s sales ratio.
Under a 100% sales ratio, Surry would take in $15.8 million in public service corporation taxes. An 88% sales ratio would equate to $13.9 million, or $1.8 million less. Public service corporation taxes account for 53% of the county’s total annual tax revenue, according to the county’s 2024-25 budget.
Don Thomas, a representative of Wingate, told supervisors in August that the reassessment would need to be completed by Dec. 31, with new valuations taking effect Jan. 1, unless the state grants a three-month extension through March 31, 2025.