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October 17, 2011 (Regular Meeting) Page 655 appraising, the realities of the local market along with state and local laws must be considered. Also, fundamental to any mass appraisal system are knowledge, judgment and the ability to adapt a standardized system to the local market. A standardized system and method of handling both data and the application of the three basic approaches to value is necessary to achieve equalization and uniformity in the valuation process. The three basic approaches which may be used to arrive at a fair market value are summarized as follows: COST APPROACH MARKET APPROACH INCOME APPROACH This approach consists of estimating the land value and the depreciated cost of the improvements to arrive at a value. Theoretically, the substitution principle is the basis for determining the maximum value of the property by this approach. The substitution principle assumes the value is equal to the cost of acquiring a substitution of equal utility assuming no cost delay is encountered. This approach utilizes the application of prior sales data from the market and is also referred to as the sales or comparison approach. Use of this approach requires that the sales used should be analyzed to determine that the conditions of fair market value have been satisfied. The two most common applications of this approach in mass appraising are the capitalized net income and the gross rent multiplier. The use of any of the three approaches requires careful consideration to be given to: 1. The relevancy of the approach applied to the property under consideration. 2. The inherent strengths and weaknesses of the approach used. 3. The amount and reliability of the data collected. 4. The affect of the local market on the data collected. This standardized system or Schedule of Values is designed and adopted to be used to establish Fair Market Value as of January 1 of the Revaluation year. Revaluation projects are mandated by State law to be performed every eight years unless the Board of County Commissioners desires to perform the projects more frequently. In the interest of maintaining fair and equitable values for the taxpayers of Cabarrus County the Board of County Commissioners has passed a resolution establishing a four year reappraisal cycle for Cabarrus County as required by G. S. 105- 286(a) (2). RESOLUTION OF THE CABARRUS COUNTY BOARD OF COMMISSIONERS TO ADVANCE CABARRUS COUNTY'S REVALUATION SCHEDULE FROM JANUARY 1, 2012 TO JANUARY 1, 2008 AND TO IMPLEMENT SUBSEQUENT REAPPRAISALS EVERY FOUR YEARS WHEREAS, Cabarrus County completed and implemented its most recent reappraisal of real property on January 1, 2004, utilizing its own staff and personnel; and WHEREAS, Cabarrus County desires to conduct a reappraisal of real property earlier than required by G.S. §105 -286, to be effective January 1, 2008, and to implement subsequent reappraisals every four years; and WHEREAS, the reappraisal work will be conducted by the staff of the Cabarrus County Assessor's Office as part of its program of work each year; NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of Cabarrus County ( "Board ") that in the annual budget ordinance for fiscal year 2007 -08, the Board shall include an appropriation for Tax Administration in the amount required for reappraisal work during that fiscal year consistent with a plan established for the reappraisal of real property, as required by GS §153A- 150; and