Chapter I

INTRODUCTION

HOW AND WHY PROPERTY TAXATION BEGAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04
SOURCES OF ERRORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07
WHY EVERYONE SHOULD CHECK THEIR ASSESSMENT . . . . . . . . . . . . . . . . . . . . . . . 07

Chapter II

THE PROPERTY TAX SYSTEM AND HOW IT WORKS

THE ADMINISTRATIVE PROCESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

PROPERTY CLASSIFICATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

THE ASSESSMENT PROCESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Chapter III

HOW FAIR IS YOUR PROPERTY TAX?
CAUSES OF INCORRECT ASSESSEMENTS

RESEARCHING YOUR CASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

POTENTIAL MECHANICAL AND FACTUAL ERRORS . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

COMPARING YOUR ASSESSMENT TO OTHERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

USING THE MARKET APPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

USING THE REPLACEMENT COST APPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Chapter IV

HOW TO APPEAL AN UNFAIR ASSESSMENT

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

BASIS FOR APPEALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

INITIATING THE APPEAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
INFORMAL APPEALS TO THE ASSESSOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

FORMAL HEARING BEFORE THE BOARD OF REVIEW . . . . . . . . . . . . . . . . . . . . . . . . 53

FURTHER APPEALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

GLOSSARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Continued…

STATE-BY-STATE TAX GUIDE

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

STATE BY STATE DIRECTORY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

FORMS

HOW TO USE THE FORMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

TAX ASSESSOR’S CALENDAR DATA FORM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

MECHANICAL ERRORS CHECK-OFF SHEET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

HOMEOWNERS PURCHASE PRICE INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

NEW HOME CONSTRUCTION DATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

COMPARABLE MARKET ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

ERRORS OF FACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

Text Box: This publication is designed to provide accurate and authoritative information about the subject covered. It is sold with the understanding that the authors are not engaged in rendering legal, accounting or other professional service. If legal or other expert advice is required, the services of an appropriate professional person should be sought.
Information contained in this publication has been carefully compiled from sources believed to be reliable, but the accuracy of such information is not guaranteed.
AHA and the authors specifically disclaim any liability loss or risk incurred as a consequence of the use, either directly or indirectly, of any information or advice given in this report.
© 2004 American Homeowners Assocation, Inc.
© 1992 Brooklawn Associates, Inc.
ALL RIGHTS RESERVED. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the publisher.

Chapter I

INTRODUCTION

 
HOW AND WHY PROPERTY TAXATION BEGAN

 To peruse the history of the taxation of property is to confirm a worldwide fundamental
truth: Private ownership of land does not exist except by the grace of the powers which govern
that land. And the bestowal of private ownership is never final. It is cluttered with demands on
the owners in the form of laws and ordinances which limit use and levy taxes. In our country, as
in most others, lawful title held by individuals can give way quickly to a decree of eminent
domain when a governing body decides that the public interest is greater than an individual
interest (for instance, a new highway, or the path of a supercollider).

 There is evidence of property taxation even in the days of Egyptian pharaohs, and as
more history is uncovered, we would estimate that when any artifact depicts land or other
property ownership, the completion of the story will include records of some form of property
taxation.

 Since monarchs could not effectively use all of the land they laid claim to, they extracted
payment from those whom they allowed to use it – and the form and degree of extraction varied
over the centuries. Then representative, democratic governments replaced self-appointed kinds
and conquerors, and the term, “royal estate,” which referred to absolute ownership by the
monarch, became known as “real estate.”

 There should be little wonder, then, that landowners have suffered for thousands of years
under the burdens of property taxes, a continuing reminder and confirmation that the ownership
of property is a privilege, not a right. Nevertheless, the control of the taxes levied on that
property lies more in the hands of individual owners and voters than any other tax. Indeed, when
given alternatives, voters seldom give up the property tax. When faced with the only viable
alternatives to property tax – income, sales, nuisance or other taxes, voters have historically held
on to the one taxing device over which they perceive they have more control – the property tax.

 However, that perception of control seems more of a psychological pacifier than a real
tool of action, because those who do, in fact, hold that control seldom use it. Although experts
state that about sixty percent of all taxable property is over-assessed, fewer than two percent of
all property tax assessments are ever challenged; but of those two percent, the vast majority
result in some reduction in the amount of property taxes owed. Research shows that taxpayers
who make up the middle and lower class of the economic spectrum are the least likely to
challenge an assessment. Yet, we know that the appeals process can be quick, inexpensive and
simple.

 Although many politicians have traditionally promised some kind of property tax reform,
beneficial changes from the citizens’ standpoint have been few. One of the most notable changes
of the past was California’s Proposition 13, an issue put on the ballot by a citizen initiative.

 The property tax is the single largest source of revenue for local governments. This in
itself is a cause of many injustices, because every one of the more than 65,000 governmental
units with taxing authority has its own laws, rules and procedures for levying and collecting
taxes. Governmental units make value judgments about the use of land – there are usually
different taxing formulas for businesses, homes, farms, and, of course, no tax rate at all for
property deemed exempt for religious, educational, governmental, or other special reasons. Since
the property tax is one of the few tools by which local control can be exercised by local
governments, some authorities use tax breaks to entice employers to take up residence if they can
guarantee a certain level of jobs in a community. General Motors’ location of its Saturn
manufacturing plant in Tennessee is just one notable example of this tactic.

 However, every increase in the number of exempt properties from taxation increases the
amount that the remaining property owners must pay, for the annual budget of a municipality,
having been determined by need rather than individual willingness to fund that need, is simply
spread over the remaining sources of income. And usually, eighty percent of a local
government’s budget comes from the property tax.

 When a property tax issue is on the ballot, voters are often barraged with “progressive”
and “regressive” jargon, and each side to the argument may use identical terms to promote their
own ideas and to blast the other’s.

 Proponents of the property tax value the ease of its use for funding education and other
local services. They often describe it as progressive, in that the more valuable properties are
assessed higher taxes. Since they see no chance of simply eliminating the property tax, defenders
of the system do not believe there is any benefit from trading the property tax for just another
kind of tax.

 Opponents of the property tax, focusing on individual incomes, point out that people with
lower incomes pay proportionately more in property taxes than their wealthier fellow citizens.
For instance, retired persons may have fine homes, acquired through lifetimes of hard work, but
a higher percentage of their retirement income is spent on property taxes. Opponents point to the
sales and income taxes as the truly progressive taxes, since they are based on current income
rather than past acquisitions.

 Opponents also point to the unequal assessment ratios used in levying property taxes, as
well as the unequal distribution of services provided by the property tax. Businesses often feel
that property owners in residential areas pay less in property taxes but receive more services for
that tax. However, the reverse can often be true. Incidentally, one can also argue that the
distribution of services funded by the income and sales taxes is equally unfair.

Critics of the property tax also highlight the lack of objectivity in assessing them. There
is simply no comparison to the objective method for determining income and sales taxes, where
an exact amount of income or sales, multiplied by an exact figure, equals the tax due.
Conversely, the property tax system has many inexact attributes. Each property has unique
characteristics. The value of those characteristics is determined by the governmental unit, not the
property owner. Just as all of us are likely to place less value on a property when buying than
when selling, so, too, are we prone to value our own property lower for tax purposes than the
value placed on it by our elected officials.

 The qualifications of the assessor affect the assessment. While most districts employ the
services of a professional, often this is a patronage appointment, and the person in the position
may be no more knowledgeable than the average taxpayer in appraising properties; in some
states, the assessor may be an elected official and, again, may or may not be a professional in the
field of property assessment.

 The assessor often performs his or her duties on a part-time basis and simply cannot
personally inspect every property. One retired taxpayer, when questioning the assessor on how
the property tax was determined, was appalled upon learning that the assessor had “looked at the
house from the road.” Yet, this is a common technique utilized as part of the assessment process.
This particular property, set back from the road about fifty feet, failed to show that the house was
falling apart both outside and in because the retiree’s income could not fund maintenance and
repair.

 Fortunately, most taxation units recognize the inherent potential in the property tax
system for inequality, error and bias, and have developed appeals procedures that any citizen can
use. We believe that the reason so few use the system include the myths that:

• you can’t fight city hall;
• the procedure requires special expertise;
• an appeal will be costly and/or time consuming; and
• the assessor and/or elected officials will retaliate.

In general, none of the above statements are true, although one may find isolated
instances of each.

One reason property owners put off or ignore inspection of their property tax levy is that
property taxes are often included as part of a mortgage or land contract monthly payment as an
easier way to pay the tax. The tax is less noticeable and therefore may be less of a concern than
one huge annual bill which may come at a difficult financial time.

 While it is true that the system can be complex, the average person can acquire an
understanding of it and can take steps to make sure that their property tax share of governmental
support is equitable.

In fact, in this manual, you will learn how the system works and how to make it work
fairly for you by finding out:

• how property is assessed, and the built-in potential for errors;
• how to determine whether your assessment is correct;
• how the appeals process works;
• the steps you must take, one by one, to utilize the appeals process.
• When to use outside experts, such as attorneys and appraisers; and
• How to present and appeal so that you not only gain the respect of the assessor or
members of the appeal board, but so that they have no choice but to agree with your
appeal.

 
SOURCES OF ERRORS

Sheer volume alone would lead a reasonable person to conclude that errors would occur.
In addition to the more than 65,000 governmental units with their own rules for assessing and
collecting taxes, well over eighty million taxable properties are assessed annually. The
complicated procedure of valuing those properties provides many other sources of error. These
include:

1. simple mistakes in mathematics;
2. errors in analyzing and interpreting market data;
3. making faulty comparisons with other property in the same area;
4. mistakes in assigning a property to a geographical taxing unit; and
5. incorrect facts about individual properties, including physical parameters and
changing market conditions.

More details will be found in Section III.

 
WHY EVERYONE SHOULD CHECK THEIR ASSESSMENT

 Anyone who is required to pay property tax may appeal. While we usually think of this
person as the property owner, some people who rent or lease property must pay the property tax
if this is stipulated in their lease. If this is the case, then a lessee may appeal the assessment.

 The immediate and long-term tax relief benefits which may result from an appeal are, of
course, obvious. Future plans to sell properties are also affected, and an equitable assessment
will certainly enhance a property in the eyes of a potential buyer.

 You may find that your property was assessed on its anticipated or potential use, rather
than its actual, current use and condition. Do you have an easement or public right-of-way which
cuts through your land? If so, does this lessen your tax burden? Do you live in the country, with
part of your land occupying two different governmental units? If so, is the tax burden a different
ratio in each governmental unit, and is the ratio applied accurately? Is your house in a designated
distressed area of a city? Are you taxed for sewers which are not hooked up to your home? Has
the assessor deducted the value of the tool shed which fell down a year after you purchased the
property, but was never replaced? All of these factors affect the amount of property tax you pay.

As you check your property tax and begin to become acquainted and comfortable with
the systems, you will likely come up with your own list of questions which, when answered, may
result in a significant reduction in your tax burden for years to come. Also, when remodeling
your home or when building a new one, if you know that reducing by a foot here or there, or
using an energy-efficient device instead of a fuel guzzler will decrease your annual tax burden,
you can certainly make more informed choices.

 You may also find that you qualify for an exemption from paying property tax on certain
items, or because of a special category which you may fit. For instance, some states exempt the
elderly, the disabled, certain veterans, or other categories. Your property may use an energyconservation
device, or it may contain wetlands or a stand of virgin timber which your state does
not tax. Many states and local governments have unique exemptions which are not found
elsewhere. Depending on where you live, you may qualify for one or more of these exemptions.

 All states set dates by which assessment must be completed. Not all of them make
adjustments throughout the year for increases in value through improvements. Thus, if your state
is one of these and your assessment is done on March 1st, you may want to wait until March 2nd
to add any improvements, and avoid additional property tax for ten months of that year.

 The facts of successful appeals should provide incentive for everyone to check their
property tax. Some experts estimate that at least one-third of all properties nationwide are overassessed.
Studies have shown that although less than two percent of assessments are appealed,
usually seventy-five percent to ninety percent of all appeals result in a reduction of taxes. One
study conducted in Boston, Massachusetts, found that owners of private homes, which made up
forty percent of the real estate in the city, filed only ten percent of all appeals over a ten-year
period. Ninety percent of the appeals were filed by, presumably, those who had the most at stake
– owners of commercial properties, including industrial, business, and rental properties. Studies
have been conducted all over the United States with similar findings.

 It does make sense that those who make real estate their business are more likely to seek
out ways to increase their profit. Yet, study after study shows that all appeals are likely to result
in a reduction. One little-known reason to appeal is the recent enactment in some states of laws
which order an automatic lower assessment upon appeal.

Although most taxing districts favor individual appeals over mass appeals, some citizens
have formed associations for the sole purpose of property tax relief for their
members/communities. Even if the association is not allowed to file mass appeals for its
members, it can provide those members with valuable information based on a bulk of experience.

There are consultants whose sole business is helping with appeals; however, they work
mainly with owners of expensive homes or businesses on a percentage basis; thus, they are
usually reluctant to invest their time on an appeal which will result in what they would perceive
as only a small savings but which, to you, would be a significant savings.

 Even your assessor and elected officials who must administer the taxing structure will
usually be cooperative and receptive to a legitimate appeal, because they have the same goal as
you: a fair taxation for everyone. After all, they are all subject to re-election or reappointment;
and, any flaw in the system which becomes institutionalized may affect their own properties.

 Even if you never realize a tax reduction – if, after all your research is done, you find that
your tax is accurate and just and that an appeal is not warranted – you will still have the
satisfaction of feeling more in control of any future tax action taken by your elected officials in
the form of new laws. And you will certainly understand any tax implications when making
decisions concerning the acquisitions or disposal of property.

 We can summarize this section by a slight modification of an old phrase: “It’s the
knowledgeable squeaking wheel which gets the grease.”

Chapter II

THE PROPERTY TAX SYSTEM AND HOW IT WORKS

 
THE ADMINISTRATIVE PROCESS

 Each taxing body’s revenue comes from several sources, including federal and state
rebates from income taxes, license fees, special projects, bonding issues and property taxes. The
property tax, as stated before, is usually the largest source.

 Property tax begins with legislation. A state legislature, within the confines of the United
States Constitution and their own state constitution, passes laws specifying the kind of property
taxes permitted, exemptions therefrom, tax rates and limits. Rates are usually set at a certain
percent per $100 or $1000 value of property. Some states have created a state-level appeals
board to oversee the collection of property taxes by local units of government. State laws can be
changed by popular vote, of course, but seldom are. California’s Proposition 13 is just one
example where citizens took things in their own hands by petitioning for a referendum and
successfully directed a campaign to educate voters who then voted for a new law limiting the
amount of property tax that the state or any governmental unit can levy.

 Local governmental units (township, village, city, county), working within the legislative
limit, pass local ordinances specifying the types, rates, ratios and rules of taxation. One example
of varying rules between districts is the practice of exempting certain properties. There may be
wide latitude between districts. As we mentioned before, one reason given by General Motors to
locate its Saturn auto plant in Tennessee was the amount of tax relief guaranteed by the
governing officials of a community. Manufacturers will determine all aspects of a community’s
business climate before locating a plant in a particular geographical area, and the property tax is
one of many very important considerations.

 Additionally, there may be a difference in the property tax components used by different
districts. Political pressures determine what is taxed, and reasons are as varied as there are people
who apply political pressure. One may think they have a tax “break,” but find that the “savings”
is made up in another area of taxation. When comparing assessments between districts, a
taxpayer may find that certain classes of property are assessed lower in one district than the
other; or that the base is lower. However, if the tax rates are higher than in the other district, the
tax may still be the same. The following is a simple illustration of this kind of difference which
results in the same tax.

• Taxing community #1 – has decided to levy $10 million in taxes to meet its
budget for providing services to the community. The tax rate is $20 per $1,000
assessed valuation. The total assessed value of all property is $350 million. The
assessment ratio is 100% of market value. The owner of a home assessed at 100%
of its value of $120,000 would pay a tax of $2400 each year.

• Taxing community #2 – This district must also raise $10 million in taxes and has
the same tax base as its neighboring community, of $350 million. The assessment
ratio in this district, however, is 70 percent of market value. Therefore, the same
tax base of $350 million now becomes only $245 million. But this district has
adopted a tax rate of $28.57 per $1000 of assessed valuation. Therefore, a
homeowner in this district whose home is worth the same $120,000 market value
would pay on only 70 percent of that value, or $84,000. But the property tax,
figured at the higher rate of $28.57 per $1000 of assessed valuation would be the
same as that of his neighbor in District 1 -- $2400.

Many of the nation’s taxing jurisdictions may overlap. For instance, a school district’s
boundaries may include two or more municipalities, such as a township and a city. Each local
government prepares its budget annually according to the services they plan to provide their
citizens. This budgetary process also varies between taxing units, so let’s look at a typical small
city’s operation:

 Each city department prepares their own version of needed revenue to continue, delete,
and/or add services within their department. The department heads then forward their budgets to
the mayor. The mayor’s staff compiles these budget requests from each department into one
document. This staff, working under the direction of the mayor, then may trim or add to each
budget request, item by item, according to the mayor’s own perception of needs and priorities.

 The mayor then submits his recommended budget to a city council. Each member of the
city council also has his or her own biases and ideas about needs and priorities. The council then
discusses the mayor’s proposal and holds public hearings, after which it imposes its own
modifications, usually in the form of spending cuts (since little citizen input will ask for
increases) or changes in priorities.

 Once the final budget is adopted, the council will be in a position to know if the previous
year’s tax rate needs to be changed in order to meet anticipated expenditures. The council takes
into consideration all sources of revenue. These may include federal and state rebates of income
taxes, state rebate of the sales tax, local “nuisance” taxes such as parking fees, licenses, and
public debt issues.

 While the revenue which local governments may raise from property tax is limited by the
tax base within their geographical district, there are various methods to get more and more from
the same tax base. Zoning is one method, whereby the business use of a property may determine
a higher rate than residential use; or multifamily dwellings may be assessed a higher rate of tax
than single-family homes.

 Another method is to simply order assessors to reappraise all property within a district at
a higher market value. This technique stung many Michigan citizens unexpectedly one year
when suddenly their property, as listed on the assessors books, jumped significantly in
theoretical value. But since all property values were increased by the same percent, it was hard to
prove inequity.

 This method may be called trending or indexing, and is explained as a way to keep up
with current market values without physically inspecting every home. Yet, by using the “average
value increase” of properties in a particular area of, say, seven percent over the previous year,
then the assessor will increase the assessed value of every property in the same district by the
same seven percent, making some adjustment for differences which have already been noted in
prior assessments.

 As in all statistics, the “average value increase” implies that some properties will be
above or below the middle or average range, and owners whose properties which rose in value
much more than the average of seven percent will experience tax relief, while those whose
properties rose in value much less than seven percent will bear a larger proportion of the overall
tax burden than their fair share. All persons considering appeals must know if this practice has
resulted in an over-assessment of their property.

 
PROPERTY CLASSIFICATIONS

 Every governmental unit must keep track of land use, and there are many ways to do so.
A governmental unit issues permits for all new construction and remodeling. Zoning for use
requires a public act by the appropriate elected body. All holders of titles and liens on property,
as well as changes thereof are a matter of public record, usually found in the county courthouse.
These devices provide the officials of the taxing district with a complete record of all properties
under their jurisdiction.

 While it is common to use classifications of property for the purposes of applying
different assessment ratios, not every state or taxing district will use the same classification or
value it at the same rate.

In general, the following classifications are used, in some variation, nationwide:

1. Residential – by far the largest classification. These properties include:
a. single family
b. duplex or triplex
c. multifamily dwellings
d. mobile home park (but, depending on state or local law, the mobile home
in the park may be taxed either as real estate or licensed as a vehicle)

2. Commercial Properties
a. retail
b. wholesale
c. shopping centers
d. office buildings
e. parking lots or structures

3. Industrial
a. light to medium
b. heavy

c. warehouse
d. industrial park

4. Other recreational properties: golf clubs, race tracks, etc.
5. Rural: woodlands, wetlands, agricultural properties (a rural homeowner may not
be a farmer, but may have acreage which can be designated as farmland or any of
the other rural designations)
6. Public properties, including cemeteries, public buildings, parks
7. Public utilities
8. Vacant, or unimproved properties
9. Exempt properties, including those owned by non-profit organizations, hospitals,
religious or educational institutions, and native Americans (we’ll expand this list
shortly)
10. Miscellaneous properties, such as pipelines, mining, specific manufacturing
industries.

The practice of allowing some kind of exemption for the payment of property taxes is
almost universal. As you can surmise, exemptions recognize the unequal economic status of
some citizens, and can be used to encourage certain private and business activities. However,
every increase in the number of exemptions granted by a taxing district means that the remaining
properties must pay a higher share of the total tax burden. Opponents of the property tax often
blame the greater and greater numbers of exempt properties for creating a “flight to the suburbs”
of residents as well as businesses, to avoid paying higher and higher property taxes.

 In addition to those exemptions listed in number nine above, we found other common
exemptions as well as some unique, even imaginative ones. However, be sure to check your own
state laws and local ordinances as well as informal, unwritten practices of local authorities for
specific exemptions.

 Most states list personal property “not attached to a structure or land and not used for the
commercial production of goods or services” as exempt from taxation; however, boats, motor
homes, mobile homes and trailers may be taxed as real estate, or may be licensed as vehicles.

 Some states also allow a partial exemption for homesteads, and a partial to full exemption
for the elderly, disabled, and/or veterans. For tax purposes, a homestead is defined as the house
and land occupied by the actual owner. There may be a limit on the amount of land considered to
be part of the homestead. For instance, if a homeowner has built a house on five acres of land,
but only two are allowed to be included in the homestead, the other three acres may be taxed at a
different rate than those designated as part of the homestead. In some cases, families of military
persons killed or missing in action are granted exemptions of some kind.

 An income limit may also qualify a person for exemption, or an extremely low total value
of a homestead may qualify that property as exempt from taxation. Some states have attempted
to build in features which may make the property tax a more progressive one, such as a sliding
scale exemption according to income.

 Some states grant a credit against income tax; the taxpayer must first pay the property tax
and then file a state income tax form proving their right to the rebate of the property tax.

 Other exemptions are according to use; the following are some of the common and
uncommon exemptions we found: property used for specific manufacturing or agricultural
activities; beehives; theaters; wetlands; non-producing, unpatented mining claims leased from
the United States; structures to store manure (sometimes, only a specific kind of animal manure);
designated historic structures; private airports; a new business (for a given period of years);
newly planted forests and some timberland may be exempt until reaching maturity; waste
control, where a manufacturing facility must devote a certain amount of property toward the
disposition of waste; facilities for moving or storing water; research and development; radiation
fallout shelters; structures to prevent the erosion of shoreline; fruit and nut tree production;
college fraternities; facilities housing domestic animals; farm products stored for less than a year;
and property used to conduct foreign trade.

Often, low-income housing is exempt from taxation, or may have a partial exemption.
Other properties located in a recognized distressed area, regardless of use, may carry some kind
of exemption. If a homeowner must make modifications for a disability, these improvements
may be exempt from taxation.

 Some items, such as satellite dishes and above-ground pools, although in effect attached
to the land or structure, may still be exempt.

 Some of the exemptions which are most often listed include devices or facilities for
environmental conservation or devices which use renewable energy sources. These devices may
be solar, geo-thermal, or hydroelectric heating and cooling systems. However, in Alaska, energyconservation
features may so significantly increase the value of property, that assessors include
them as taxable.

 There may be exemptions for fire protection systems or the tools of a manual laborer,
although used for the production of income. Some states specify a number of years a facility
may be in existence before it is taxed.

 This long list is by no means exhaustive, but it will give you some idea of the wide
diversity of exemptions. Again, consult the state-by-state listing for your individual state for
exemptions which may be available to you. And, as we’ve pointed out, when you begin to look
at your own tax, you may find local exemptions.

 There may even be exemptions not listed in any manual or statute, but which may be
informally upheld by precedent and tradition. Some assessors may have decided that they
“shouldn’t penalize people for improving their property,” and certain items simply will not be
considered in the overall appraisal of a property. They may not intend for this informal practice
to be a secret, but perhaps the only way you can find out what is really taxable or exempt is to
get acquainted with your assessor or his/her staff.

 And, when planning those remodeling or repair projects or new structures, find out how
the assessor will interpret them. For instance, one homeowner replaced the leaking flat roof to
better facilitate the rain falloff. Since his state exempted repairs and maintenance until a property
changed hands, he thought there would be no tax penalty. However, the assessor interpreted the
change in design from a flat to a peaked roof to qualify the “repair” as a “new structure” and
increased the value of the house for tax purposes.

 Another homeowner sought out the assessor before building a small, separate structure to
house her lawn and garden equipment because, although she knew that her particular state
exempted “sheds” from taxation, she wanted to know how such a structure was determined. She
found that if she eliminated the foundation from the building it would qualify as a shed, but
putting a foundation under the shed would make it a taxable structure “attached to the land.”

 
THE ASSESSMENT PROCESS

 When people do not understand a process, it can often be perceived as overwhelming; in
the case of the assessment process, it is, in fact, an awesome task to administer. We can break
down this task into several components in order to begin to make sense of the process so that
taxpayers can utilize it to their advantage. Following is such a breakdown:

Locating and Listing the Properties

 Each property, whether vacant land or land with improvements in the form of buildings
or other structures, must be located, identified, and listed in some system for easy access. The
system must include the property descriptions, maps, property record cards, etc. Modern
assessment offices often use computers to store much of this information.

Valuation

 Since the tax assessments are based on the appraised value, the assessor must perform
this valuation using appropriate guidelines. These guidelines may be issued at a state level, or
determined by the taxing district.

Eligible Property for Taxation Purposes

 Each assessor must determine a property’s taxability – whether it is exempt, and therefore
not taxable at all; whether it is partially exempt; zoned as residential, commercial, or any number
of other uses; whether there are other factors which affect its taxability, classification, etc.

Equalization

 The assessor must be cognizant of the different governmental units within the assessment
district. There may be a number of school districts or other public services supported by different

properties. The assessor must make sure that taxes are equalized among all these entities. The
different items which may be taken into account during equalization include:

• the allocation of the costs of county government among the different districts (city,
township, etc.) within the county;
• the apportionment of each school district costs; and
• the distribution of state school aid to each school district within the county.

Revaluation

 Revaluation occurs when the taxing district finds that each property does not really share
the same proportion of the tax burden. This can happen for many reasons which we will not go
into here. However, when this has been determined by the taxing district, the assessor must carry
out any policy decision by the elected officials of a district to conduct a mass revaluation
program. When this happens, often an outside firm must be engaged, since an assessor’s office is
seldom staffed for this purpose, and a mass revaluation program must be carried out within a
limited time frame.

 A mass revaluation will probably not consider unique characteristics of individual
properties and, while generally accurate, may also be an instance in which one finds basis for
appeal.

Reassessments

 The terms, “revaluation” and “reassessment” are often confusing to the average
layperson. Revaluation refers to the practice of making sure that each property carries an equal
share of the tax burden. Reassessment implies that not all properties have been assessed at their
true value. Thus, while revaluation may be done, it assumes that properties have been assessed at
their true value even before the revaluation process is undertaken.

 The assessor supervises reassessments and seldom needs to engage an outside firm for
this purpose. If reassessment is done, the assessor’s responsibilities include submitting a plan to
the next higher authority for approval. The plan will probably include a description of the
methods which will be used for reassessment, dates during which the assessment will be
completed, and the effective date of the new assessments. When such a program is conducted,
taxpayers are also given notice of the new assessment dates and their rights of appeal.

Appeals

 Finally, the assessor is the defender of the district against appeals of taxpayers. The buck
ultimately stops with the assessor or, in the case of very large districts, with someone to whom
the defense duties have been delegated.

 Like any business, the assessor’s department may be a large organization with subdepartments
and personnel who carry out specific duties regarding property taxation. Also like
any business, there is probably a “culture” on how things get done, and anyone considering an
appeal should become knowledgeable, to the extent possible and practical, with this culture and
its fine nuances through exploration with people both inside and outside of that department.

 The assessment itself is made by the assessor or authorized staff, who uses specific
information to determine the market value of a property. Market value is called ad valorem,
meaning the actual price that the property would sell for if advertised for sale on the open
market, and where all buyers and sellers are free to conduct their activity. In other words, if you
were to sell a property to a relative for a nominal amount, and the property were not for sale to
the general public, this would not constitute market value. Neither would a sale forced by
damage or bankruptcy proceedings even though the property was for sale on the open market.

 In determining this market value for the purpose of assessing taxes, the assessor may also
take into account the purchase price, and the cost to build less depreciation. Many states publish
a manual which assessors use as guidelines. These manuals are available to taxpayers for a
nominal fee. In some cases, the taxpayer would have to pay for a photocopying cost.

 The manual gives detailed directions for evaluating every aspect of a property. There are
different calculations, for instance, for brick siding versus wood; for clay-tiled roofs versus
asphalt shingles; and for ten feet of cabinets versus eight feet. If a state has not developed a
manual, the assessor probably uses a publication by the California company of Marshall and
Swift, called Marshall Valuation Service manual. In any case, the assessor will let you know
how values are determined.

 After appraising the property and placing a value on it, the assessor will then apply a
ratio. This may be 100 percent, meaning that the tax rate is applied to every $100 or $1000 of
property value. Some districts have adopted an “equalized” rate to spread taxes more equitably.
A typical ratio is twenty percent of market value for tax purposes only. Thus, if a property’s
market value is estimated to be $100,000 and the tax rate is five percent per $1000 for tax
purposes, then that rate is applied to only the assessed valuation, or $20,000, in order to arrive at
a tax due of $1000.

 The practice of assessing properties on only a fraction of their market value is a common
practice and, for most taxpayers, a confusing one. There may even be fluctuations in assessment
ratios from jurisdiction to jurisdiction within a state, or within a county. Even where a state
requires property to be assessed at 100% of market value, a local jurisdiction may be using a
percentage instead.

 Confusion is created when, for instance, a homeowner is aware of the “requirement” of
assessment at one hundred percent of market value, but knows that in their area, homes are
assessed at forty percent. Thus, a couple who believes their property is worth $150,000 may not
challenge an assessment of $90,000 (or 60%) for fear of having the assessment raised. This will
not happen, because all assessments must be comparable.

 The assessment process may be performed for each property annually, but it is more
likely to be done initially when a new improvement is made, and then periodically. A common
method is to appraise perhaps one-quarter of all properties every four years, using the current
appraisal on that one-quarter to estimate any increase in value of the remaining properties for
that year.

 When all properties have been appraised and assessed, the assessor lists all of them in one
document called the tax roll. The tax roll is a public document, meaning that it is open to
inspection by any citizen. This is the document which local governments use to determine that
tax rate, as described above.

 You will use the tax roll at some point in time when researching your own property tax.
When doing so, you may be surprised to find that some properties are not listed, or that
information about them appears to be in error. Exempt properties may be listed, but they often
are not because no tax is payable.

Chapter III

HOW FAIR IS YOUR PROPERTY TAX?
CAUSES OF INCORRECT ASSESSMENTS

 
RESEARCHING YOUR CASE

 This section outlines how you can review your assessment and gather facts to determine
whether you have a basis for an appeal. The first step is to research your state requirements. The
state-by-state report has basic, general information. You will need to supplement this information
with other details. One way is by going to your state’s web site address as shown in the state-bystate
guide at the end of this guide.

 Your research will relate almost exclusively to property other than personal property.
Very few states tax personal property not used in the production of goods or services, and the
determination of what is included in the definition of personal property is up to each state or
local government. Sometimes, personal property is listed separately on the property tax
statement. If so, you will need to compare records for these items also; but for the most part,
your research will cover all property except personal property.

 One little-known fact about personal property is that certain items in homes are assumed
by most people to be part of the real estate, but instead are classified as personal property. These
items may include wiring; generators; foundations built for specific equipment, not for the
building itself; and heating/cooling systems. These items are obviously “attached” to the building
– usually the determinate of real estate property. They are seldom included when valuing the
property.

 Since you will be making some analyses, you need to begin with some basic inquiries,
not the least of which is the location of your assessor’s office. The following are some simple
steps to get started:

1. When you visit the assessor’s office, take the legal description of your property with you.
This is located on your deed or land contract. Also take your property tax notice for comparison
purposes. You need to find out how your assessor’s office works – you may meet with the
assessor or with one of the staff (if a large office).

If the office has assigned staff to be responsible for a certain geographical area of
property, that person will understand the entire process, and your work will be easier. If the
office assigns only part of the appraisal process to individual staff, any one of them may not
understand the entire process, and your work will be harder. For instance, one person or group of
people may do the actual physical inspection; another may monitor the assessment system;
another may compute the taxes; and another may work only in the area of appeals, defending
them against taxpayer protests.

2. Take a copy of the record sheet found in the back of this manual. You will be transferring
information onto this sheet for analysis purposes later. You have a right to ask to see the
assessor’s records which show your assessment. If not clear on the document, ask the assessor
what percent is used for assessment – 100 percent or a smaller figure. This is expressed as a
percent of market value. Write this information on your record sheet. Ask about adjustments, if
any. This practice, which we described in Section II, called trending or indexing, makes a
blanket percentage adjustment to all property values to bring them up to what is perceived to be
current market value.

You may not need every bit of information which the assessor has, but the following is a
general list of information that may be available:

• Property record: Probably in card form; the information may also be stored in a data
base retrieval system. You will need the official property record to ascertain that all
facts are correct. Items often overlooked include: measurements of each room,
number of rooms, square feet as a result of correctly calculating the measurements,
year built, year improvements were added, etc.
• Maps: Zoning maps, tax maps, maps showing land value and use as well as potential
land use. If you later make a search of other properties for comparison purposes, these
maps may be useful.
• Exemptions: A list of each exemption allowed by local or state law, including criteria
for eligibility, which must be used to figure net property tax.
• Abstract of Deeds: You may already have your own abstract as part of acquiring title
to your property. If not, the assessor’s abstract of deeds shows the changes of title
over a huge number of years – and also the assessments which may have changed.
• Assessment Lists: These lists will show each property’s address, assessed value,
assessment ratio, new properties, personal property if applicable, and properties
which have changed status (for instance, from a taxable property to a tax-exempt
property).
• Tax List: This list is different from the assessment list. It is the official roll certified
by the property authorities for use by the taxation board and shows all property
subject to taxation within the district levying the tax.

Once you have located the appropriate personnel, you will find them usually to be most
cooperative. The passage of the Freedom of Information Act and the Right-to-Know laws, have
upheld your rights as a citizen and taxpayer. The office personnel will probably help you find
information relevant to your property. Occasionally, an individual may be too busy to help you,
but may have time with an appointment. Additionally, some offices may require proof that you
own the property in question, and that is a good reason to have your property records with you,
as mentioned in number one above.

 Your local assessor will be glad to cooperate with you in your research, because they
know that a taxpayer’s honest search will result in a more coherent and accurate appeal – or in no
appeal if the taxpayer finds that all has been done “according to the book.” An appeal based on
facts is treated with much more respect than one which, in essence, merely says: “My taxes are

too high because my neighbor pays less.” The appeal must contain the detailed, factual basis for
the appeal.

3. Other information which is critical at the beginning of the research includes:

a) the date of the certification of the tax roll;
b) dates for the filing of appeals, along with the order of appeals – that is, from the
first step through higher powers of authority, all the way to the court system (you
usually cannot skip a step – if you miss one step, it may jeopardize your ability to
take further steps);
c) the base year for assessments; and
d) the kinds of evidence which an appeals board will consider – find out the weight
attached to each, remembering that people making up appeals boards differ in
their idiosyncrasies; and what may be effective with one board may damage your
case with another.

Basis of Assessment

 If your state publishes an assessor’s manual, this written basis of assessment is probably
found in the manual. Usually, state or local law requires that this information be written and
available to the public. There are several possible bases of assessment.

 One basis is common-sense – assessment districts must, by law, assess the true price
(which, as we have repeated, is often a matter of opinion) of any property for the purposes of
levying property tax. The true price is that for which the property would sell on the open market
as of a particular date. The question you will want to ascertain is: Was your property assessed at
a fair and true market value, when taking into account every fact which pertains to that property?

 The second basis for assessment is legislative and judicial. A state constitution and state
legislature define and give guidelines for property taxation. Case law further interprets these laws
and guidelines. These systems not only define, but refine the following terms:

• a bona fide transaction;
• open market;
• a willing buyer and seller; and
• methods of valuing property.

Courts may, in some cases, decide whether a property may be assessed according to its
current value, or according to its potential value, even though you have no plans for changing the
use of your property. A court may also stipulate that more than one valuation method be used in
valuing a property in question.

 The third basis for assessment is the level of assessment, which must be an equal ratio for
all property in a given district. Often, a district will allow a given valuation above and below this
level to account for differences in properties. If your property was assessed above this common
level, you may have a basis for appeal.

Assessment Practices

 Not all districts assess each property every year. If they can perform this extremely timeconsuming
task, the district can be assured that they are current, and are collecting every dollar
they are due. For a district whose properties are decreasing in value, an annual assessment can
work in the favor of taxpayers, because their property tax may fall along with decline of property
values (unless the district raises the rate of tax).

 Another practice which may result in property taxes which are higher than they should be
is that of not conducting a physical inspection of every property. This is a common practice
which will not reveal items such as:

• the depreciation of individual buildings. A standard depreciation rate may not account
for every building in the district, and some will stand the test of time better than
others;
• the changes in traffic patterns caused by new highways (perhaps outside the district),
designation of one-way streets, or elimination of factories/service buildings, etc. may
cause a decline in property values; and
• changes in sections of the district, or particular neighborhoods because of crime or
other negative demographics will lower property values.

Once assessment has been done, if each subsequent assessment is based on past
appraisals, no correction will be done. For instance, if all properties have been appreciating at a
rate of two percent each year, and the assessor assumes that this rate will continue indefinitely,
then all property taxes will also increase at the rate of two percent. However, there are so many
factors which enter into the value of property other than just what that property cost. These
factors include market forces, business boom or bust, and crime-infested neighborhoods.

Although assessors should be aware of these factors – and we believe that most are – the
rapidity of change may inhibit the collection of constant up-to-date information. As an individual
property owner, you can make current information available now, not at some future time when
the assessor has caught up with the backload.

Additionally, if your property has experienced any kind of damage which decreases its
value, or if an outbuilding has been torn down, the assessor will not know of these changes, and
will keep on perpetuating the percent increase in value according to the original base property
value.

Assumptions must always be checked out – and corrected when they are erroneous. So
know what base assumptions your assessor is working with.

To illustrate the perpetuation of past mistakes, consider the following horror story: (We
want the impact to sink in, so we’ve used a highly valued commercial property for our
illustration, and have used hypothetical figures for ease in computing at a glance.)

 AICH Company used a three-story building for manufacturing their products. One year,
the owners eliminated the top story of the building, making only two stories of usable space. The
company did not tell the assessor that the building now only contained two-thirds of the original
15,000 square footage of working space.

 Since the first appraisal, the assessor has continued assessments based on an assumption
that the building still contained 15,000 square feet. However, since the elimination of the third
floor, it actually contains 10,000 square feet, making it over appraised by $500,000. After
elimination of the third floor, here is what happened:

 Tax for the first year:

The property is appraised at $100 per $100 per square foot, making the building’s
original 15,000 square feet worth $1,500,000. The tax rate was $10 per $1000 of
valuation, for a total property tax of $15,000. However, the building now has only
10,000 square feet; therefore, the valuation should have been $1 million, making a
total property tax at $10 per $1000 of valuation, of only $10,000. $5,000 overpaid

 Tax for the second year:

The tax remains the same – still $5000 more than should have been levied. $5,000
overpaid

 Tax for the third year:

 The taxing district raised the appraisal rate for this kind of commercial building
from $100 per square foot to $120 per square foot. The tax rate remains the same at $10 per
$1000 valuation, but the building as described on the assessor’s records is now worth
$1,800,000, making a total tax burden of $18,000. Instead, the assessed valuation on 10,000
square feet should have been $1,200,000 with a tax burden of $12,000. $6,000 overpaid

At this rate, the taxpayer will be paying huge sums of money because of the failure to
“apprise the appraiser” of the change in his building.

Although homeowners are dealing with smaller figures, the impact is the same, and
should be corrected at once, not later.

Assessment Methods

 While the assessment process nationwide is generally a professional undertaking, it is
also true that sometimes an assessor’s determination of theoretical market value is woefully
inadequate. Theoretical, of course, means that this is the value estimated if a property were
placed on the market. Assessors often estimate this market value by using one of two
approaches, and these are usually specified in the state manual: the replacement approach, or the
comparable sales approach.

 We will get into actual examples later, but to summarize briefly, under the replacement
approach the appraiser uses standard cost estimates (usually from a state-published manual) of

replacing an improvement, including construction costs of all specific items such as the main
structure, unique features, garages and outbuildings, while allowing for deprecation over the life
of the property. The land value is then added to arrive at the total property value.

 Using the comparable sales approach, the appraiser uses a list of properties which have
recently sold and which are similar to the one being appraised, making allowances for
differences, since no two properties can be exactly alike.

 You need to know which approach your assessor uses in determining the value of your
property. Additionally, you may find another method that you feel gives a more accurate
valuation of your property, and which may, in some cases, aid in your appeal.

Find out the date of appraisal

 Even though the state information says that all properties must be assessed by a certain
date, only the assessor will know if this was done physically, or if the assessment was
extrapolated from actual assessments only on a sample of properties. Just as an electric utility
can estimate your monthly bill by using data from the previous year, the assessor can also
estimate your assessment based on previous assessments, or facts about a portion of the taxing
district.

Determine the fiscal year of the taxing district

 Some governmental units use something other than a calendar year. There may be more
than one due date – the actual date due and a later date which will be a penalty date, requiring an
additional amount of tax due.

Become aware of the time lags

 There can be as much as a year time lapse between the date a property changed value, the
date is reassessed, and the appearance of that new assessment on the property tax bill. Time lags
can drastically increase the magnitude of a property tax problem. Consider the following
example:

 A taxpayer, whom we’ll call Mr. Money, bought three parcels of land in a rural area for
the purpose of building his dream home. He applied for and received rezoning on all three
parcels, which were formerly classified as three separate, agricultural ones for property tax
purposes. While the change in ownership was duly filed at the county courthouse, the township,
which was the taxing district, failed to note this change. Instead, the computer sent the next
property tax bills to the old owners, who sent them to Mr. Money, who paid them without
notifying the township of all the changes which had taken place, including the fact that there
was, by now, a half-completed residence on the formerly vacant land.

 When the construction was almost completed, Mr. Money (an obviously fickle
individual) sold the property to Mrs. Bag. Meanwhile, there was no evidence that the township

had made an adjustment in the assessed valuation of the property, which was by now worth more
than $500,000 (we did say it was a dream home).

 Now, it’s hard to believe that professionals in real estate could overlook an enormously
out-of-line tax bill when making a legal transaction transferring property, but in this case they
did. Four months after the transaction, Mrs. Bag was left holding one, in the form of a tax
liability for Mr. Money’s year of ownership. The bill now showed the new ownership, the
combination of the three parcels into one, the rezoning of the properties to a higher assessment
ratio, the value of the improvements on the land – AND THE ADJUSTED TAX BILL.

 It cost Mrs. Bag considerable time and money over a period of more than a year to
recover funds from Mr. Money to take care of a tax which should have never been billed to her.

 Therefore, include the property tax bill or even a copy of the assessment record in all the
documents you analyze when purchasing a property. Never leave it entirely up to the lawyer, real
estate agent, or the escrow officer to ascertain the accuracy of that bill. When it is clear that the
property tax record does not accurately reflect the value of improvements which existed during
the seller’s ownership, contact the assessor for an adjustment, or get an estimate of the tax
liability and have the funds placed in escrow until the adjusted bill is received.

 Even though any legal document should contain a clause guaranteeing the payment of
past bills by those who owe them, as you can see, a little extra time in checking will save time
spent later enforcing.

Don’t settle for information only from the assessor

 Also, don’t make a faulty assumption that the assessor is “the expert.” Often, there is no
job description for appointment or election to an assessor’s position. Even where taxing districts
make every effort to employ or appoint qualified people to the assessor’s position, that person
may not be any more skillful in appraising a property than you are, with the help of some
research. Before you talk with people at the assessor’s office, discuss assessment practices with a
couple of local real estate brokers. If you have a neighborhood tax organization, talk with their
members. Or, you may find individual taxpayers who have experience with the system and who
will be glad to share their experiences with you.

The assessors records

 The second step in determining whether your assessment is fair is to get a copy of all the
records relating to your property. This will include the assessor’s working papers. The assessor
may argue that his working papers are not “public” as is the official property record card.
However, past claims of this kind have been refuted by the courts. The assessor is your public
servant. Even though you may feel you are the servant since you are “ordered” to pay the bill, the
assessor owes you clarification of any record regarding your property.

 You need specific information, not general information. If the assessor has used actual
properties in any comparison with your property for assessment purposes, you have a right to
know the location of these properties and the detailed information about each of them.

 In summary, if any record is needed to show the basis for a fact, you are entitled to that
information. Some of the information may be difficult to interpret, and this is where a citizentype
relief organization would be helpful. Some states or communities have legal aid services
which may be of help in interpreting legal documents.

 In case of appeal, you will be including the assessor’s records as one part of the appeal
documents. Another part will be your independent valuation and the basis for determining it.

 The assessor’s record of your property should show:

a. the name as title holder(s) or mortgagee(s);
b. lien holder(s), if any;
c. the legal description, lot number, street address, dimensions of the land and buildings;
and
d. a detailed list of characteristics or features of the property.

 
POTENTIAL MECHANICAL AND FACTUAL ERRORS

 Once you have obtained all the information which the assessor has, you are in a position
to determine the assessed value, versus the true market value. Since almost all properties are
assessed for tax purposes at a fraction of their true market value, this is often the most confusing
part of checking for errors. Remember that the price you paid for your home will probably not be
the value written on the tax notice. We do feel it necessary to repeat: Many homeowners
mistakenly think they are getting a break when they see an assessed fractional valuation which is
less than what they believe their property is worth.

 Also, as we mentioned, there can be wide fluctuations between taxing districts, so that
your assessed valuation may be much higher or lower than your neighbor’s property which lies
in a separate district.

 A published example of this fluctuation appeared in the magazine, Changing Times,
during a recent presidential campaign. The magazine reported a difference of only $525,000 in
the assessed value of the homes of George Bush and Michael Dukakis, with Bush’s Maine home
assessed at a value of $891,600 and Dukakis’s Massachusetts home valued at $367,400. The
magazine would have been doing more accurate reporting had they published the true market
value, rather than the assessed value, which showed that Bush’s home was actually worth two
million dollars more than Dukakis’s home. This greater difference was hidden by the fact that
Maine assesses property at forty percent of market value, and Massachusetts assesses property at
one hundred percent.

 Therefore, we caution you not to be confused by the practice of fractional assessment.
This is the first thing you need to understand in order to work with the figures. Once you know
the true market value and the assessed value, it is a simple matter to ascertain whether your
assessor has applied the proper ratio to your property. If this has not been done accurately, you
would certainly win an appeal.

 The second set of basis facts to check include those describing your property. Here, you
need to use the form in your kit to accurately record all the facts pertaining to your particular
property which may be taken into account in determining the true market value. Later on, we will
talk about the value of these attributes. But for now, simply focus on whether the facts are
correct.

• Check the dimensions of both the house and the land to see that they are correct.
Your property may have three bedrooms, but your assessment report lists four;
you may have removed a storage shed after buying your home, but the assessment
record still lists shed and therefore includes its value. Or the assessor or his/her
staff may have transported numbers incorrectly, describing a building as
containing 2150 square feet instead of 1250 square feet, resulting in an enormous
jump in value. If your lot or acreage is of an odd shape, be sure that is reflected. If
an easement cuts across your property, see that both that fact and the dimensions
are accurately recorded. Also, be sure that the assessor’s description or
measurements do not include a portion of your neighbor’s land.

• Check all the mathematical calculations. The assessor may have incorrectly
multiplied the dimensions of your home to arrive at the total number of square
feet. Remember that computers can err, also especially when the wrong data is
input, or the wrong program is used. And they can err for a number of other
reasons.

• Damage or Defects in the property: Find out if any defects in the property have
been taken into consideration by the assessor. The common practice of inspecting
a property only from the outside for assessment purposes will not disclose broken
parts of the heating system, or water damage from burst pipes. Leaking roofs are
expensive to replace and a homeowner may decide to put up with a small leak, but
fail to notify the assessor that their property is less valuable because of the leak.
Fixing the leak may mean that the entire roof must be replaced. A foundation
which is sagging would obviously take thousands of dollars to fix.

• Watch for semantics in descriptions. One homeowner bought a house classified
in the real estate agent’s ad as a split-level home. In reality, the lower level was a
finished basement, more than half of which was underground. The assessor, just
like the seller of the property, had equated the basement with a full floor when, in
fact, the state manual specified that in order to qualify as such, the ceiling of the
basement “story” must be at least five feet above ground. The homeowner had
been paying taxes on a non-existent floor of living space for more than fourteen
years before he found the error.

• Check to see that exemptions have been allowed. Be sure that the assessor has
credited you with any exemptions for which you may qualify. Often, exemptions
may be listed, but are mistakenly not included in the computation of a property
tax bill. On the other hand, the assessor or the taxing district may not know of a
taxpayers’ income or other status which would qualify them for an exemption.
We have listed many kinds of exemptions in Section II of this manual. These can
be summarized as those for the elderly, disabled and veterans or other personal
categories; total income exemptions; period of time an improvement has existed;
and special use.

• Type of construction used in the building: A frame building will be valued
differently than a brick one; a permanent log home will be differently valued than
a seasonal log vacation cottage.

• Outbuildings and other improvements: Anything you have added to the home
will add to the total value. Likewise, anything you have torn down and not
replaced should be deleted from the value. A swimming pool above ground may
not be considered an improvement, while an in-ground pool will probably add to
the total value of the property. A paved driveway/road is more valuable than a
gravel driveway/road. Sometimes, taxpayers focus only on the buildings
themselves, rather than the entire property.

• The age of your property: Another basic, common-sense fact that must be
checked for accuracy before going much further with your investigation.

• Utilities: One kind of utility versus another could affect the overall value of
properties. See that the correct one is listed on the assessor’s records.

• Externally caused changes in property values: Since the entire real estate
market changes constantly, be sure that the appraiser has accounted for anything
in the surrounding community which may have had a diminishing effect on your
property. Look for things such as: zoning to a lower level; flood damage to the
area (even if not specifically to your property); and declaration of your area or one
nearby as a hazardous waste.

• Location: Again, one cannot afford to make the common-sense assumption that
the assessor has placed your property in the correct assessment district. An
adjacent district may have a higher tax ratio and rate than the one to which you
should be paying your property tax. Make sure your property tax dollars go to the
governmental unit to which you belong.

• Property classification: Another common-sense assumption which should be
checked out. If your property is a single-family dwelling, be sure it has not been
classified as a multi-family dwelling or duplex.

• Property use: This is related to the above item, in that the use determines the
classification; however, some assessments are based not on actual use, but rather,
on the best use. While this is seldom a practice, be sure that your property does
not fall into one of the exceptions. Also, especially in commercial properties,
there may be restrictions which affect their total value or portion of their value.

• Depreciation allowance: Check both the computation of depreciation, and the
appropriateness of the method used for calculating the depreciation. If an item of
depreciation is not included in the records, you may need to probe for his
information. A more detailed description of depreciation is included on page 41 of
this manual.

• Method of valuation: If the state issues a manual for assessing property, the
method of valuation to be used with each type of property will be listed there. If
no state manual exists, find out what standard method is used by your district and
determine if it has been applied appropriately. If you find another method which
may be more accurate, find out if it can be substituted or be used as a supplement
to the other information. Also, find out where the assessor obtained the
information used to ascertain costs. In certain cases, an assessor may use one cost
record to figure depreciation, but that same record may not be appropriate to
arrive at an assessment of property value for the purposes of property taxation.

• Other: Determine whether property omitted in a previous year is now included; if
so, you may want to question whether such an inclusion of this property is now
proper. The exclusion may have been based on a good reason which has not
changed.

With this preliminary list of things to look for, you will be in a good position to
intelligently discuss your research needs with the assessor and his or her staff. Any assessor will
be glad to correct his records and make an adjustment when you point out erroneous facts.
Again, however, this must usually be done within the time limits for the property tax assessment
you are challenging.

 Forgive us for belaboring what should be an obvious place of beginning in checking your
report, but we find that people often take for granted our public servants’ mathematical
capabilities and careful copying of records. We find that a taxpayer who grumbles that their
name is misspelled seldom jumps to an obvious (to us) conclusion that if their name is incorrect,
there might be more items that are incorrect.

The fact that people overlook basic sources of error such as the simple mathematical and
copying errors or other errors of fact is quite comparable to the situation which occurs when your
television is not working. The first thing your TV repair person will ask when you say that your
television is not working may be: “Is it plugged in?” Repair people know from experience that
often the only problem is that the set is not plugged in. Yet, many people get offended if one
implies that they are not smart enough to know whether the thing is plugged in. Likewise with

the property tax, if the correct facts and figures are not “plugged in” to your assessment report,
then of course you will have an incorrect assessment.

 
COMPARING YOUR ASSESSMENT TO OTHERS

 Since the valuation of property is not an exact science, it requires the exercise of a lot of
opinion in making that judgment. It is well known that not every professional in the real estate
field will agree on the worth of a property. That is why we have a bidding process on public
construction, and why we may favor one real estate agent over another when buying or selling a
house. Therefore, it is reasonable to assume that these judgments, especially when comparing
your property to another one, may be faulty. Just one example will illustrate the problem of
judgment calls: One assessor placed a higher value on a separate garage, assuming that it, along
with the rest of the property, had appreciated in value. An appraiser, who also happened to be an
assessor in an adjoining district, but who was appraising the property for purposes of a bank
loan, depreciated the garage because it was older than the rest of the outbuildings, which
included a storage building as well as an in-ground swimming pool.

 Since comparable properties and sales conditions can almost never be identical, the
assessor makes adjustments for these differences. However, if you purchased your property in
the last two years and the real estate market has been relatively stable, the true market value of
your property should not be much different than the price you paid for it.

 If you purchased your property more than two years ago, or if real estate values have
fluctuated widely during your two years of ownership, you must begin to compile a list of other,
similar properties in order to determine comparable value.

Consistency

 Although all similar properties must, by law, be treated the same for tax purposes, many
studies have shown that in general, this has not always been done. If all properties are assessed at
forty percent of market value and yours is assessed at sixty percent, that figure is still less than
market value (which, as we said, confuses many people), but it is still not fair and equitable. On
the other hand, if your property is assessed at thirty percent when all others are at forty percent,
your assessor has erred to your benefit, and you may want to quietly go about your other
business.

 There are simple steps toward arriving at a test of comparability. First, look at the
assessment cards for all properties similar to yours, which are located in your general area. If
some of them are in a different taxing district, you may have go to more than one assessor’s
office for this purpose. Remember, we are talking about comparable properties, not comparable
tax liability, so property in another nearby district may still be used for comparison purposes if it
is similar. Initially, we are going to make a simple comparison before going to the more tedious
task of an item-by item comparison and subsequent adjustments for differences among these
“similar” properties.

 Second, compile all the relevant information on a chart which will show at a glance any
differences. A sample chart may look like the following:

All two-story homes within a five-year age range as listed on the Assessor’s records

Location

Building

Cost per Sq. Ft.

Land

Cost per Ft. Frontage

Property A

$33.50

$300

Property B

$32.00

$300

Property C

$32.70

$305

Property D

$33.00

$300

Property being compared

$38.00

$345

In the sample above, it is clear that one of these properties is out of line with the others.
Sometimes just showing that your assessment is out of line with others will be enough evidence
to challenge an assessment. However, there may be good reason for this, and if your assessor
does not agree with your first analysis, you will have to do some more work. Also, you will need
more than just a few properties on a comparison chart such as the one above in order to make a
good case.

 Some taxpayers have deliberately sought out information regarding public officials’
assessments in order to show that their own is higher, and therefore prove that favoritism was at
fault. This may result in a successful appeal, but it is always wiser to make more “neutral”
selection of homes for the purpose of comparison. Creating antagonistic situations can be
counterproductive. Elected officials are always in a goldfish bowl, and favoritism can be exposed
and dealt with more effectively in a political environment rather than by one individual on a
single, personal issue. In fact, information shared with newspapers often exposes inequities and
inconsistencies as such as these, and often helps the appropriate officials make corrections.

 
USING THE MARKET APPROACH

 Often, a state will specify the appropriate method to be used by assessors when
evaluating property for assessment. One of these is the market approach. There are several steps
to this process, and several sources of data which may be consulted. The classified real estate ads
will give a general impression or ball-park estimate of market values; but is not accurate, in that
it reflects asking prices, rather than actual selling prices. Other data can be found in publications
of multiple listings and through title insurance company records.

 As we discuss what the assessor does in the following narrative, keep in mind you will do
the same, or ensure that the steps are followed by someone to whom you may assign the task.

 First, the assessor may conduct a physical inspection of the property, confirming items on
his report, and adding or eliminating features, as the case may be.

 Then the assessor will analyze a data bank of real estate sales records in order to identify
several comparable local properties which were recently sold on the open market – those located
in the same general area which are similar in square feet, physical condition, commercial use,
zoning area, and age. The original asking price of these properties is irrelevant. The only data of
use is the actual selling price.

 Once the assessor has analyzed this data, he or she can then make a judgment about the
property in question. Remember that the assessed value on your tax record is probably a fraction,
since the practice of assessing properties at 100 percent (as in the case of Dukakis’s home, cited
earlier) is not used as often as assessing them at a fraction. In order to know what market value
the assessor assigned to your property, merely find out what percent the assessed value
represents and then adjust that figure to determine the market value. For instance, if the tax
record lists your property’s assessed value as $30,000 and you know that the tax district assesses
similar property at twenty-five percent of true market value, divide $30,000 by .25 to arrive at
the assessor’s estimate of a true market value of $120,000.

 You should conduct your comparison using at least three other similar properties. The
more comparisons, however, the better your preparation of any appeal. In order to check the
accuracy of the market value which the assessor has placed on your property, you can, of course,
hire a professional appraiser to appraise your property and similar ones for the purpose of
comparison; but this manual’s purpose is to help you to reduce your taxes without taking on
more financial burden in order to do so.

 However, you may feel more comfortable in appealing your property tax if you believe
that a professional will make fewer mistakes, or you may not have the time to learn the system
and then perform all the tasks. Before you engage the services of a professional appraiser, that
person will most likely provide free consultation regarding the chances of the success of getting
a tax reduction, the amount of the tax relief, and the fee for their services. They will have an
opinion based on a wide range of experience in working with both the general public as well as
with taxing districts as to whether an appeal can win at the assessor level or whether it would
likely go to a higher body, involving more time and costs.

 The major drawback of using a professional appraiser is, of course, the cost; and if the
potential tax saved is not great, that cost may not be justified.

 If you do use a professional real estate appraiser, make sure they have the proper
credentials – those who have been accredited by a national organization such as the American
Society of Appraisers, the Appraisal Institute, or the National Association of Independent Free
Appraisers. A professional appraiser may charge a flat fee per appraisal, an hourly fee, or figure
the fee as a percent of the value of your property. The charge averages $200 nationwide. If you
use the results of a professional appraisal at a hearing, the review board may also require the
appraiser to appear to confirm or clarify the information.

 We are confident that any taxpayer can easily learn the system, become comfortable with
the process, and perform all the tasks necessary to achieve an equitable property tax burden.
They can bolster their knowledge and confidence through discussions with real estate agents,
bankers, and attorneys. Of particular value will be discussions with others who have appealed,
analyzing both the successes and failures. Often, a situation which failed will yield more useful
information than a success, because the reasons are more apparent.

 In the introduction, we mentioned the use of consultants. We caution you to be careful if
selecting a consultant, to make sure that they have the credentials for the job. They may or may
not be a professional appraiser. While they usually charge nothing if they lose your case, they
often charge one-half of what you may save in reduced taxes – sometimes for a number of years
of savings.

 A consultant may not have the same credibility before an appeals board as a professional
appraiser since the consultant’s full-time occupation is challenging appeals of citizens, while an
appraiser may have served both sides of the issue at different times. Additionally, the review
board may have more respect for the sincerity of taxpayers who are their constituents, than for
consultants who may be based outside the district. Therefore, make a preliminary check of
records and facts before deciding that you need the services of a consultant.

 An economical method for gathering appraisal information is to ask a real estate agent to
provide this information, since they must have this sales data at their fingertips at all times. A
real estate agent often makes a comparison for a potential seller of property to help them arrive at
an asking price. If you are considering the sale of your property through this individual, the real
estate agent may make a comparison at no charge, and this data may help you in your research
now. But an appeals board may not consider the appraisal of a real estate agent to be as valid as
that of a “neutral” appraiser. (We all are aware of the vast differences between a bank’s appraisal
for loan purposes, a seller’s appraisal with or without a realtor’s help, and a buyer’s appraisal!)

 You may also find sales data at the assessor’s office, the local library, or a bank or other
lending institution. Some banks, however, consider such information confidential. The loan
officer who handled your own transaction may, at his or her discretion, allow you to examine
their other sales data. Additionally, city or county clerks’ offices have information on all
recorded deeds, as well as the sales price at the time of changing hands. (Keep in mind that a
quit-claim deed rarely reflects a sale.)

 When making your comparisons, you must use any official manual which the state
designates must be used in appraisals for tax purposes. Then, using relevant formulae for
assigning values, make adjustments for differences in similar properties. If your state does not
stipulate a specific manual, you may use other methods. Even if there is a mandated manual, if
you use a different method which legitimately shows inequity, you may be able to make a case.

 For our purposes, “similar” means properties which are reasonably comparable to yours.
They would have the same number of rooms, approximately the same number of square feet and
lot size, and would be located in the same geographical area – a neighborhood rather than a
whole county. Not all properties are the same age, of course, but try to choose properties in the

same age range for comparison. A house located on one street may be almost identical to one
two streets away, but be lower in value because of the particular neighborhood in which it is
located.

 When looking for differences among those properties, you may find that one property has
a fireplace but yours does not. If the manual says a fireplace is worth $2000, deduct that value
from the value of the comparison property. Find out the value of a garage versus no garage; a
basement versus just a slab foundation, etc., and make further adjustments.

 All other things being similar, evidence of property damage would also reduce the value
of a home. These things cannot be accurately determined without physical inspection.

 There can be differences in sales conditions such as the source of financing: ownerfinanced
versus bank financing; buy-back guarantees; and co-signer guarantees, among others.

 Also, ask the assessor for the “assessment/sales price ratio.” (Some states allow the use of
this ratio, and at least two states require that it be used in making assessments. Your state may or
may not allow the use of the ratio in a formal appeal, however.) This ratio is a result of dividing
recent sales prices into the assessments property in the area. This information will contain the
actual sales prices of property used to compute the ratio. With this data, you can determine
whether the assessment/sales price ratio for all property comparable to yours is higher than the
average properties in the area.

 Remember to find out whether the market has changed significantly since the sale of the
properties you are comparing. Also, become aware of the potential use of a property which
might affect the market value for tax purposes.

 All these factors should help you make an independent judgment of the true market value
of your property versus the official value determined by the assessor. However, we also need to
consider the replacement cost method for assessment. When you consider that our job in
evaluating just one property is by now quite labor intensive, you can develop a little sympathy
for the job of an assessor who must evaluate hundreds (and sometimes thousands) of properties.

 
USING THE REPLACEMENT COST APPROACH

 Using this approach, the appraiser must determine the cost of replacing a structure, make
allowances for depreciation, and then add value of the land to estimate total property value.
Again, a manual is used, which lists standard values for every construction item from heating
and plumbing to bricklaying and roofing.

 After determining the total property value, the assessor applies the appropriate ratio, or
fraction, to determine the assessed value.

 Although not used as often as the comparable sales approach, the replacement cost
approach may be the best method to use when: 1) You have investment properties for which the
replacement cost approach would prove to be the most valuable in determining those properties’
value; 2) comparable buildings would be hard to find because of the newness or uniqueness of
the building being valued. Additionally, by understanding all the methods of valuation, you will
probably increase your depth of understanding of the entire process.

 The cost replacement approach is not appropriate for very old properties which have
already experienced a lot of depreciation. Also, be aware that the original construction costs may
have reflected costs due to delays in construction caused by bad weather, materials delivery,
labor stoppages and/or factors which did not really add to the value of the building itself, but
which may have resulted in increased costs, nevertheless.

 The replacement cost approach is similar to the comparison method in that it makes an
assumption that the cost to replace is equal to the market value of the specific property. There are
two kinds of costs:

• Costs of reproduction: This method considers the costs to rebuild the property in
its original condition – usually with older materials, and with all its deficiencies
and possible obsolescence.
• Costs of replacement: This method uses current cost estimates to replace the
building(s). This method will use the cost of modern materials and construction
methods. Appraisers use this method more often because they consider it to be
more accurate.

When applying the cost approach to evaluating a property, the following is a brief
summary of the steps to be used: (We will go into them in more depth later.)

• The land must be valued separately from the buildings, using the sales method to
assess value.
• The cost to replace the building(s) is estimated.
• The accumulated depreciation over the life of the building is estimated.
• The total depreciation is then subtracted from the estimated replacement cost in
order to arrive at the current value.
• The current value is then added to the land value to arrive at an estimate of the
total value of the property.

Step 1 – Land Value

 As we stated above, one must always estimate the land value apart from an estimation of
the buildings and/or other structures upon the land. Quite simply, land exists regardless of
whether a building has been placed upon it; there is nothing to replace or cost out. Therefore, one
must determine the value of the land by finding out what it would sell for on the open market.

 A method used to value commercial land in some areas is the “land residual” approach,
which utilizes income-producing property, analyzing the income derived solely from the

buildings versus total income in order to arrive at an income produced by the land. Using
capitalization rates, they then arrive at the net income generated by the land alone in order to
assign a value to the land. This manual is concerned with homeowners rather than owners of
commercial property; however, we include this brief summary for those who may want to pursue
further investigation on the subject with other sources.

 Farmland: Each state or taxing district may have a different definition as to what
constitutes farmland. The definition will take into account items such as:

• Who owns the land.
• The total acreage; whether it is contiguous; and the percentage used in
agricultural production.
• The gross sales from the farms products.
• The total time the land has been used for farming.
• A statement committing the land to agricultural use for the tax period in
question.

If a right-of-way or road cuts across your property, find out whether this is considered by
the assessor to render a land non-contiguous and, if so, find out how this affects the value of the
land.

 If there is a size requirement for land to be considered farmland (and perhaps assessed at
a lower ratio) and you have several parcels in different districts, there may be a provision to
combine them for assessment purposes to meet a minimum requirement.

 Wetlands: The topic of wetland preservation has been making more and more headlines
in the newspapers of local communities recently. Designation as a wetland is accompanied by
restrictions on use, permits for certain uses, and other regulations. Their value for property tax
purposes is different from other land. Wetlands may fall under one or more of the following
descriptions:

• marshes;
• swamps;
• meadows;
• banks of waterways, both on the cost and on inland rivers and streams; and
• lands which may be inundated by tidal waters – these are called flat lands or low
lands.

Conservation lands: Most states place a value on historic sites, and encourage other
conservation practices. As a result, they often give a tax break for these purposes. To meet the
requirements for such breaks, property owners must agree to restrictions on the use of the land.

A property owner may need to designate only a portion of their property for conservation
purposes, thus reducing part of their property tax.

Step 2 – Replacement Cost of Each Structure

Often, a state assessment manual may stipulate that assessors should use more than one
method for assigning value to buildings, but because of time constraints, assessors generally use
only one.

Replacement costs include both direct and indirect costs of replacing a particular
structure.

Indirect Costs including all costs other than labor or materials or a percentage estimate of direct
costs. Indirect costs are not considered “hard” costs. They may include:

• title expenses;
• property taxes;
• costs to administer the building project;
• the fees charged by an architect, real estate broker, lawyer, appraiser or other
professional services related to the construction of the home and other structures;
• insurance other than that required for the construction itself;
• finance costs: loan fees and interest;
• costs to ready the site for construction (removal of trash, buildings, general cleanup of
the site); and
• profit: any difference between what the property would sell for and the price paid by
the purchaser. If this cost is estimated as a percentage of other costs, then it would be
considered a direct cost.

Direct Costs are for labor and materials for the construction of the structure and will include:

• building materials, including rental equipment used in construction;
• cost of the manual labor;
• overhead and profit which the builder must charge;
• insurances directly related to the construction (unemployment, workers’
compensation, fire, and liability);
• costs of ensuring security at the site during the building process;
• fees paid for surveying, performance bond and building permits;
• the cost of temporary structures such as those used for storage to shelter materials
and labor from the elements, as well as structures for administering the project;
and
• costs of installing utilities – gas, water, electricity, telephone, sewer, etc.

When estimating both direct and indirect costs of replacement, one can use the methods
of “comparative unit,” “quantity survey,” and “unit in place.”

Comparative Unit

 Again, this implies other similar structures for the purpose of comparison, and uses a
standard cost per square foot. For that reason, this method is most often used to estimate
replacement costs for a standard building.

 First, one must find the average cost per square foot for similar buildings. This can
usually be found in the files at the assessor’s office or the taxing district, or builders’ manuals
which estimate construction costs. Since they are “average” and may also be slightly out of date,
they must then be adjusted to show the current market value, along with any unique features
pertaining to the property being evaluated.

 Publishers of building cost manuals include Marshall and Swift Valuation Service;
Boecha; and S.W. Dodge.

Using the comparative unit method, then, the following chart shows sample figures:

Direct cost estimate (from builders’ cost manual)
Per square foot

$65.00

Add:

Union labor (local prevailing wage)

+2.00

Architect costs

+2.00

Sub-Total

$69.00

Adjustment for current market value (since the
publication of the manual). This is a “time multiplier.”

69 × 1.05

× 1.05

Sub-Total

$72.45

Adjustment for local market conditions (multiplier).

72.45 × 10.87

× 0.15

TOTAL COST PER SQUARE FOOT

$83.32

TOTAL DIRECT COSTS

(square feet x the adjusted cost per square foot)

2000 square feet × $83.32

$166,640

TOTAL INDIRECT COSTS

$20,000

GRAND TOTAL

$186,640

 Important: The manual uses a base building to arrive at unit figures. If estimating for a
different size building, each unit figure must be adjusted. The manual will usually contain
guidelines for making these adjustments, and your taxing district will have information regarding
their procedure for making adjustments.

 Additionally, your taxing district will have standard construction costs as well as indirect
costs. Your manual may not have estimates of indirect costs.

Quantity Survey

 When making this kind of estimate of costs to replace your home, you must compile
information on a number of similar properties, just as you would when making a comparison in
the sales approach.

 You will probably not find this method appropriate – nor, probably, will your assessor –
unless your home is brand new. In order to make a quantity survey, one must be familiar with the
field of construction and, for older homes, this would be difficult for a layperson. For a new
home, however, current costs are located on the construction estimate from the builder for your
particular property, and on similar estimates in the area. A sample list of detailed direct and
indirect items follows:

 Direct Costs

Excavation

Foundation

Carpentry

Masonry

Roofing

Insulation

Flooring System

Finished flooring

Sash/glazing

Painting

Electrical

Piping

Plumbing

Overhead and profit

TOTAL

 $

 Indirect Costs

Site cleanup

Architectural fees

Appraisal

Legal, title and financing expenses

Insurance

Property Taxes

TOTAL

 $

TOTAL COSTS = Direct Costs + Indirect Costs

Unit in Place

 This method arrives at costs by first determining the unit cost per square foot of all items
and then applying it to the actual amount of labor/material, etc., used in the particular building.
In this case, rather than arriving at a total cost per square foot as we did in the Comparative Unit
sample, we must first find the cost, for example, of framing, which may be $3.00 per square foot,
and then multiply it by the actual square feet of framing in the building to arrive at the total cost
for framing.

 Again, simply add the total of indirect costs to the direct costs to arrive at total costs.

 Direct Costs

Excavation: ___________ cubic ft. @ $0.20

Foundation: ___________ s.f. @ $0.__

Carpentry

Masonry

Roofing

Insulation

Flooring System

Finished flooring

Sash/glazing

Painting

Electrical

Piping

Plumbing

Overhead and profit

TOTAL

 $

Indirect Costs

TOTAL

 $

TOTAL COSTS = Direct Costs + Indirect Costs

Depreciation

 Now that we have estimated the value of the home, we must determine the depreciation
which has accumulated since the time the building was constructed. Depreciation estimates must
deal with two factors: physical deterioration and obsolescence.

 Deterioration which can be restored or repaired is, of course, treated differently from that
which is permanent.

 Obsolescence is also of two kinds: functional obsolescence refers to outdated use of the
building, and external obsolescence refers to those forces outside the control of the building
owner(s) which make the building obsolete. For instance, a neighborhood may be rundown and
the condition of the entire neighborhood affects a single property, even though the property
would be valued much higher in a different neighborhood.

 There are several methods for estimating depreciation. They are: economic age/life;
modified economic age/life, or breakdown.

Economic Age/Life Method

Don’t confuse this depreciation method with the different depreciation methods used for
your income tax or other purposes. For valuing property for assessment purposes, only the
straight-line method is used. The economic age/life method is not the most accurate, but it is by
far the simplest method for estimating depreciation.

To use this method, one must know the total life of a property and the “effective age”
(not the actual age) of the property. Then divide the effective age by the total life to get a
percentage; multiply this percentage by the replacement cost (the figure you arrived at by one of
the three methods above) to find the actual accumulated depreciation. Or, expressed as an
equation:

 Economic Age/Life Method

Effective Life ÷ Total Economic + Replacement = Total Accumulated
Life Life Cost Depreciation

Sample Figures

Replacement cost of building(s)

$150,000

Total economic life if the building were new

50 years

Remaining economic life

40 years

Effective age

10 years

Depreciation: 10 ÷ 50 = 20% + $150,000 =

30,000

Replacement cost less depreciation
gives the current value (150,000 - 30,000)

$120,000

Add the value of the land

$20,000

Total value of property

$140,000

Modified Economic Age/Life Method

 This method handles deterioration which can be restored separately from other items.
This method may be more accurate when there are clearly areas of deterioration which can be
restored.

 In order to arrive at the depreciation using this method, first estimate the value of the
“curable” deterioration. This value is the cost of what repairs would be necessary to bring it up to
a restored condition. Items may be sagging floors, painting, broken plumbing, etc. A sample
inventory of each of these items may look like the following:

 Sample Inventory

Kitchen cupboards

$3100

Utility floor
(water damage from leaking water heater)

$500

Replace carpet in room next to utility room
(damaged from water heater leak)

$1700

Bathroom ceiling & wiring
(water damage from water heater on above floor)

$500

Replace two columns under roof overhang

$200

Leaking roof over garage

$2500

Paint interior walls

$1000

TOTAL

$9500

Next, subtract the value of the deterioration which can be restored from its replacement
cost. This will be the adjusted replacement cost.

The third step is to measure the rest of the deterioration which cannot be repaired or
restored, using the formula for the economic age/life:

(Effective age ÷ Total economic life) x adjusted replacement cost = incurable accumulated
depreciation.

Next, add the value of the deterioration which can be repaired to the value for
deterioration beyond repair to arrive at total accumulated depreciation.

 Using sample figures:

Effective Age ÷ Total Economic × Replacement = Total Accumulated
Life Cost Depreciation

Sample Figures

Replacement cost of building(s)

$150,000

Subtract “curable” depreciation

- $9,500

$140,500

Total economic life if the building were new

50 years

Remaining economic life

40 years

Effective age

10 years

Depreciation: 10 ÷ 50 = 0.20 × $140,500 =

$28,100

Replacement cost less depreciation
gives the current value (150,000 - 30,000)

$120,000

Add the value of the land

$20,000

Total value of property

$132,000

Breakdown Method

 This method is the most accurate and the most difficult, because it figures depreciation on
five different categories.

 First, estimate the deterioration which can be restored, as in the above example.

 Second, estimate the deterioration which is beyond repair – the “incurable” depreciation.
These items include wear and tear which, if repaired, would cost more than it would add in
value. Some of this wear and tear is short term items, such as paint, carpet, ceilings, etc. Some is
long-term. Even though we included replacement of certain items in the “curable” categories
above, there may be others which would not be replaced simply because it doesn’t pay to do so.
If the replacement cost of the basement bathroom ceiling under the utility room is $800 and you
have already allowed for $500 of that under the “curable” portion, then $300 would be included
in the “incurable” portion.

 Using sample figures:

Effective Age ÷ Total Economic × Replacement = Total Accumulated
Life Cost Depreciation

Sample Figures

Replacement cost of building(s)

$150,000

Subtract “curable” depreciation

- $9,500

Subtract “incurable” depreciation

- $4,000

$137,500

Total economic life if the building were new

50 years

Remaining economic life

40 years

Effective age

10 years

Depreciation: 10 ÷ 50 = 0.20 × $140,500 =

$27,400

Replacement cost less depreciation
gives the current value
137,500 - 27,400

$110,100

Add the value of the land

110,100 + 20,000

$20,000

Total value of property

$130,100

Functional Obsolescence

 Functional obsolescence most often applies to commercial components of the structure
which are outdated or below current standards. A “curable” defect may be the lack of an elevator
which can be installed; and an “incurable” defect may be the lack of a parking lot, for which
there is no land available. Functional obsolescence is treated similarly to deterioration, in that
one estimates the cost of making such obsolescence equal to current standards, or the value of
not having such a standard at all, and then deducting that value from the replacement cost of the
building.

 If all five kinds of depreciation were applied to a building and were broken down, the list
(but not amounts) would read as follows:

1. Curable physical deterioration
2. Incurable physical deterioration
3. Curable obsolescence
4. Incurable obsolescence
5. External obsolescence

Additional Improvements

 This category might include such items as insignificant outbuildings, landscaping, and
other minor items. The depreciation for these items would be figured using the economic age/life
method.

Summary

 Again, there are many judgments and opinions involved in valuing real estate. Almost
everything is open to question. In looking at the assessment records, determine whether:

• the appropriate methods were used – replacement rather than reproduction, etc.;
• appropriate adjustments – such as prevailing wage labor costs;
• proper depreciation method(s) was used – perhaps the breakdown method would have
resulted in a more accurate assessment and a greater savings of property taxes;
• accurate costs of items were listed; and
• all exemptions were allowed.

Chapter IV

HOW TO APPEAL AN UNFAIR ASSESSMENT

 
INTRODUCTION

 You are now ready to prepare your appeal. The exciting part – discovering the error or
errors which have led to the appeal – is behind you. However, preparing your appeal and
presenting it can also be an exhilarating experience.

 Organizing your data for an effective and successful appeal will involve the actual
preparation, timing and other logistics, strategy, documentation, approach, and knowledge of the
idiosyncrasies, needs and preferences of your audience – the assessor and/or the members of the
appeals board.

 Before deciding where to begin with your appeal, become acquainted with the particular
process which your taxing district uses. You probably have some choice as to where to make the
initial appeal, but you certainly have no choice as to filing deadlines, so the time element is the
most crucial.

 Your district may require the use of certain forms to facilitate the process, and an
overlooked technicality here may seriously jeopardize your chances of winning an appeal. Or,
depending on each district’s requirements, your local tax authorities may be flexible in allowing
appeals to be submitted in any reasonable and coherent manner, as long as they are submitted
within the established time frames.

 The district’s rules may stipulate who may represent a taxpayer before an appeals board
or even in an informal appeal with the assessor. One level of the process may prohibit
representation in the form of anyone other than the taxpayer unless a paper of authorization is
given by the taxpayer to a third party; another level may actually require the use of an attorney
because the property holder is a corporation or the amount of the total tax burden in question is a
huge sum. When an appeal is carried all the way to the court system, a taxpayer must usually
employ the services of an attorney.

 As a citizen, your rights to due process apply to any governmental decision affecting your
welfare, and due process means proper allocation of time, the right to confront and question
witnesses, present your own version of the facts and the interpretation of them, and argue on
your own behalf.

 You have every right to make a thorough presentation but “thorough” does not
necessarily mean “lengthy.” Members of appeals board are usually laypersons like yourself. In
small districts, the members are probably donating their time as a public service or they may be
serving on the appeals board because of another position they may hold in the community, such
as fire inspector or county commissioner, and therefore, have no special expertise in the

assessment process itself. You will be doing the appeals board members and yourself a favor by
making your presentation concise, clear, simple and direct.

 You may want to refer to other successful appeals of a similar nature to support your
case. If so, you must gather this information during the research phase.

 Keep in mind that your appeal may fall into a category that, if granted, would set a
precedent. If the assessor or board agree that you deserve a reduction, but want to base it on
another technicality in order to avoid opening the door to a bundle of similar appeals and
subsequent mass property tax reductions, your goal will have been accomplished, and it may be
to your long-term benefit not to quibble about the method of reduction.

 
BASIS FOR APPEALS

 Besides the differences between appeals based on errors in facts and those based on
errors in judgment, there are four basic categories which most taxing districts recognize for bases
of appeals. Some governmental units may list others, however.

 The first appeal we will discuss is one based on an unequal assessment which results in
an unfair property tax burden. This problem is more likely to happen when fractional
assessments are used. Fractional assessment, you may recall, is the practice of using a percentage
of true market value to determine assessed value. In order to prove unequal assessment, you can
utilize the following steps:

1. First determine the full market value using the methods of comparative sales or
replacement cost.
2. Determine the equalization rate, which is the average percentage of full market
value for all properties in your classification or for all property in the taxing
district.
3. Determine the equalized value of your own property by applying this percentage
to the full market value of your own property. The result should equal the
assessed value shown on your property statement. If this amount is lower, you
probably have an unequal assessment and a basis for appeal.

The second grounds for appeal is one against a value that a taxpayer believes is too high.

There are several factors to this appeal. The full value and assessed value may be correct, but if
the assessor has not allowed for an exemption for which the taxpayer is eligible, the assessment
may still be too high. In this case, there could be two reasons for reducing assessment if both the
value used as a basis for the assessed value is overestimated and appropriate exemptions have
not been allowed. Be sure you construct separate arguments for both of these items.

If reassessment has been conducted, taxing districts often make the property tax increases
in stages in order to allow taxpayers to spread the burden over a period of years. Usually, the
taxing district has adopted a plan, available to the public, which describes this transition. You

may find basis for appeal if your assessment, on comparison, is greater than that allowed by the
plan.

 Be aware that you may need to prove that a comparable home would not sell on the open
market at the market value estimated by the assessor. Allow time to compile such information
before you initiate your appeal.

 The third category is that of property classification. This, of course, applies only to those
districts which classify their property for property tax purposes. These classifications, which we
have discussed earlier, include farmland, commercial buildings and land, residential, and others.
Since classifications are made for the purpose of assigning a different assessment ratio to the
respective properties, if you can prove that your property was mis-classified in a category which
carried with it a higher assessment ratio, you will win a reduction in property tax. However, be
aware that this is not as simple as looking up the public document which lists the criteria for
classifications. Proof must be presented to show that the criteria for the lower classification was
met.

 The fourth cause of appeals is that of assessments which have been made unlawfully.
There are several reasons that an assessor may have (almost always unknowingly) made an
assessment which can be categorized as illegal. Appeals on illegal grounds are not as numerous
as the other causes; however, they do happen, and you should be aware of the kinds of illegalities
which may exist.

• Legally, a taxing district may not go outside its specified boundaries to assess
property for tax purposes. Properties which lie close to these boundaries or
overlap jurisdictions may be illegally assessed. An appeal proving such an
assessment would certainly win.
• Again, exemptions may have been overlooked. Technically, then, to assess a
property which would fall into a category which has been determined as exempt,
such as a church, school, etc., would be illegal.
• The identification may be unclear, and the wrong property was identified as the
one being assessed. The assessment record must contain a clear description of the
property assessed. A taxpayer may be able to prove that he or she does not, in
fact, own the property described on the tax roll. However, if property tax must be
paid on that particular property, the assessor will probably simply clarify the
description. Then the tax will still have to be paid by the person(s) who own the
property.
• The authority to assess property is legally defined. Anyone other than the person
holding this authority, or one to whom that authority has been delegated, cannot
legally assess property. This would be a basis of appeal, but is quite rare. As in
the case above, the legally designated authorities would then take steps to make
the record official, and the tax would have to be paid. There may be a slight
chance to avoid a property tax burden based on this technicality.

Your strategy should be tailored to the type of appeal you are initiating. An appeal based
on errors of fact, of course, are easier for an assessor to change than an appeal challenging his or
her judgment. The following chart shows at a glance the facts which may make an assessor – or
board of appeals – make corrections:

Item in

Contention:

Error:

Result:

Estimate of

cost to

replace a

building

By basing the estimate

to replace the building

on the manual issued by

the state, the assessor

arrived at a cost of $200,000.
Actual cost of the building

was actually $180,000,

proven by the builder’s
contract.

Overvaluation

of $20,000.

Estimate of

cost to replace
building #2

In this case, the assessor

did, in fact, use the builder’s

contract to arrive at a

cost of $250,000. However,

the actual cost was

$200,000 and the added

costs were the result of

delays caused by a work

stoppage and the lack of

building materials. The

facts are proven by the

initial contract, the letters

describing the delays, and

the additional items charged for
delays.

Overassessment

of $50,000.

Cost of a

generator,

wiring and other

items connected

to an airconditioning
unit.

These should have been

classified as personal

property. Manual lists

exemptions for personal

property.

Overassessment

Of $5000.

Estimate of

square

footage

Assessor’s documents

show 4500 square feet

where the home is

actually 2500 square feet. A

blueprint of the home

shows the actual measurements

and square feet.

Overassessed

by $80,000.

INITIATING THE APPEAL

 Usually, the less formal the appeal, and the fewer people involved, the more efficient and
effective the result. However, some jurisdictions limit the freedom to choose a course of action.
If the time frame allows, and the tax roll has still not been certified, we believe that most appeals
can be handled very well directly with the assessor. An assessor who agrees with the facts
presented by the taxpayer can intervene before the tax board has certified the tax roll. This saves
time and usually saves money for both the taxpayer and the governmental unit involved.
However, some district rules specify that appeals of certain amounts must be filed directly at a
specific level, usually a court of law.

 Once a tax roll has been certified by the tax board, any change must be requested through
the appeals process before a formal board. There are exceptions to this rule, however, which you
can only ascertain by inquiry to the proper authorities.

 Once you have passed the informal and formal appeals processes, you may still have
further recourse in your state’s judicial system.

 
INFORMAL APPEALS TO THE ASSESSOR

 The most important thing before meeting with the assessor is to determine whether you
have time to do so. We assume that you conducted your research within the time frame allowed
before the dates that the appeals board meets to hear cases. If you have missed that hearing, you
probably will not achieve any adjustment on your current property tax assessment (some states
do allow correction for previous years). However, you can still affect the next year’s assessment.

 Before initiating a meeting with the assessor for purposes of discussing your case (you
may have already met this individual when researching the facts), talk with others who may
know whether the assessor wishes a formal letter requesting a meeting, or whether a telephone
call will suffice; whether the assessor will require formal documentation including charts, etc.;
backup documents such as the bill from the contractor, notarized statements, a physician
statement of disability or veteran’s discharge papers (in case of exemptions).

 If possible, discuss with others whether they believe you would have a better chance by
using an informal appeal or, because of the particular assessor, whether your chances would be
better if you take your appeal directly to the appeals board. It may be that the informal appeal
would be only a perfunctory exercise which would still result in the necessity for a formal
appeal. If so, then your time may be better spent researching, preparing and presenting for only
one hearing.

 Determine the political expediency of utilizing the informal versus the formal process.
The formal process may result in greater adjustments than those realized through the informal

process. However, if the appeal is based on factual errors rather than what you believe are errors
of opinion, the informal process is probably the only reasonable one.

 Finally, find out how others have handled situations like yours. Time spent with these
preliminary questions and concerns may well save you time later.

 In most cases of informal appeal, documentation is not required to the extent that it would
be in the formal appeals process. In fact, the assessor may think you are “beating a dead horse” if
you present a stack of documentation when a simple statement would suffice and would be
resolved in much less time on the part of both of you.

 This part of the appeals process could be the most comfortable, since, through
discussions, and before anything is written in concrete, you may be able to show the assessor that
errors have been made, and he/she will be happy to correct them. In fact, this step may be more
appropriately labeled “error correction.”

 Solving your property tax problem at this level also saves considerable time on your part,
as well as time – and therefore money – on the part of the assessor and the taxing district. Their
appreciation should be as great as yours. Also, there is less likelihood that any outside expert
whom you have used, such as a real estate agent or an appraiser, will be called upon to appear
and defend their appraisal. The final important fact is that the appraiser, who is familiar with the
entire process, and may be with your specific property, is in a position to understand your case
much better than the board of appeals.

 Once the assessor has sent his final record to the taxing district, even before it is certified
by the tax board, it is harder for the assessor to change it and still “keep face.” If you deliberately
wait until the formal appeals hearing to expose an obvious error or errors, you will be needlessly
and publicly exposing the assessor to embarrassment.

 However, if the roll has already been compiled, the assessor may still concur with your
facts and agree to attach a document to that effect to your appeal papers. In that case, the
adjustment by the appeals board will probably be automatic.

 Even if you have every reason to believe that the assessor will not agree, but will instead
try to argue in favor of the original assessment, it may be better to “try” your case with him or
her for the practice it will give you in presenting and meeting with counter-arguments. The
assessor’s viewpoint considering the same facts may give you reason to reconsider your case,
and/or to strengthen it before presenting it to the appeals board.

 Be aware, though, that your preliminary discussion with the assessor also has the
potential for weakening your case. We find that the reasons for discussing your appeal with the
assessor far outweigh those against it; however, following are some of the reasons for not using
the informal approach:

• The assessor may take your challenge of his assessment personally.
• There may be no provision in the taxing district’s formal or informal rules for the
informal appeal to the assessor.
• The assessor may discuss your appeal with you only so that he or she has your
case sized up in preparation for the “real” appeal to the appeals board. In this
case, always remember to not tip your entire hand if the error(s) is one of
judgment rather than fact.

In rare instances, assessors have been known to give false reasons why an appeal will not
result in a reduction of property tax, hoping the taxpayer will drop the issue. In some districts
they have been known to make a practice of threatening the taxpayer with a statement to the
effect that the appeal will result in a higher property tax. Don’t be intimidated by such claims
without checking them out.

 Assuming that you have good reason to believe that your property tax should be
reduced (if not, don’t even consider an appeal), there are several strategic points to keep in mind
during your discussion with the assessor:

1. Keep your discussion friendly; you are here to help, not hinder, the assessor.
However, also keep in mind that you are in a bargaining position, and may not
want to give the assessor all the information that you feel would be better
presented to a board of review.
2. Assume that no mistakes were intentional, but present your facts as additional
information which the assessor may not have known, or may have overlooked.
Express confidence that once the assessor has looked at this additional
information, he or she, being a reasonable person, will certainly make the
necessary adjustment(s).
3. While communicating your respect for the professional ethics and duties of the
assessor, do not readily accept the assessor’s opinion/argument as “expert” and
final authority.
4. Keep in mind the “politics” of the assessment practice and the fact that there may
be other pressures upon the assessor that you may not know. These pressures
should have no bearing on your tax, but may still force the next step of a formal
appeal.
5. Don’t worry about proper forms at this step unless required. Remember that this is
an informal process. You are going to have a quiet, non-judgmental talk about
your property tax with the assessor.
6. Remember to differentiate between errors of fact and errors of opinion; and focus
on the facts of your case, not on placing blame for errors.

If the assessor clarifies the assessment to your satisfaction, express your appreciation
rather than a feeling of being put down. As we stated in the beginning of this manual, both the
taxpayers and the taxing districts, including all the employees and elected officials, ultimately
have the same goal – an equitable tax for everyone.

 Again, if you have access to a neighborhood tax association, use their expertise in
forming your own opinion about the accuracy of any refusal of the appraiser, after hearing your
argument, to adjust your assessment.

 If you still feel your case has merit, do not hesitate to take it to the next step of the
appeals process – the formal hearing before a board of appeals.

 
FORMAL HEARING BEFORE THE BOARD OF REVIEW

 Again – MEET THE DEADLINE! This may mean that you must allow time to request
and receive a hearing date, rather than just showing up without being placed on the agenda.

 There is only one time period during the fiscal year that property tax appeals are heard by
an appeals board – and the appeals must be against the current property tax. However, in your
favor is the fact that no matter when an error may have occurred, even though you may not be
able to make retroactive adjustments, the fact that you didn’t appeal the error in the year it was
made does not prohibit your getting it corrected in the current year.

 Your tax assessment should give the dates for appeals. If not, call the district, or even the
assessor’s office to find out when the dates are. Someone in an authoritative position must supply
you with this information. A checklist would include all or more of the following:

• Date by which the assessor must complete all assessments and send them to the
certification authorities;
• date of certification of the tax roll;
• date by which all assessments are final (this is after the appeals period);
• flexible dates for filing informal appeals (there may be a number of dates) for:
a. the initial application;
b. the initial presentation;
c. the decision;

• flexible dates for filing formal appeals, which, again, may include a number of
dates or a timeline for:
a. the initial application;
b. the initial presentation;
c. the decision;

• deadline (which is not flexible) for filing official appeal at the next step, assuming
your previous appeal was denied and you intend to carry it forward;
• deadline for filing further appeals;
• deadline for formal hearings; and
• deadline for final (current year) decisions by the tax board.

After you file for a hearing date, the appeals board will send you a notice of that date.
Check the notice to see if the assessor has recommended an increase in the assessment. Most
states require that this fact be included in the notice of hearing date. Also, be aware that this
recommendation may simply be a scare tactic, but now that it is on the record, you must go
ahead with your appeal to avoid the higher assessment being placed on your property.

Again, if you miss any of these dates, whether flexible or actual deadlines, you are “dead
in the water,” and the busy members of the appeals boards will waste little time hearing excuses
or complaints. They will simply place the next taxpayer’s appeal on the agenda.

Where to File

 You also need to know the address for filing and to whom to address the request for a
hearing, along with the names and locations of anyone else in authority to whom you must send
copies of your papers. Find out if anything needs to be notarized. Too often, this item is
overlooked and people are scrambling at the last minute to find a notary. (Notary publics can be
found in one of the following locations: banks, real estate offices, attorney’s offices, and even
some convenience malls.)

 Find out if you must fill out a form(s) and pay a fee(s). Do all this in time to MEET THE
DEADLINES! If you think we are repeating this caution unnecessarily, bear with us; it just
happens to be one of the most-often overlooked facts in winning a reduction in property tax.
Again, if your property is owned by a corporation, your papers may need to be filed by an
attorney on behalf of the corporation.

 While not usually required, you may wish to send your request for an appeal by
registered mail or overnight courier to show proof that you have taken every precaution to meet
the deadline. Then, in the rare case where papers may have been lost, you may still be granted a
hearing if you can prove no fault of your own in failing to meet any deadline.

Advantages/Disadvantages of the Formal Appeal

 We emphasized that in most cases, it is more desirable to pursue an informal appeal, but
also listed some disadvantages. The formal appeal has advantages and disadvantages not
contained in the informal situation, and you may want to consider them.

Advantages:

1. The members of the appeals board did not make the original decision regarding the
assessment, so they are not personal stakeholders in maintaining that position.
2. Since the hearings are open, decision-makers (the members of the board) may make
more of an effort to be objective.
3. Different (and perhaps more) arguments can be proposed to the members of the
appeals board than to the assessor in an informal appeal.
4. One may be able to predict with some certainty the outcome of an appeal because of
knowledge of the set rules under which the board must operate.

Disadvantages:

1. There is more expense and time involved in a formal appeal.
2. Your presentation will be made to a group, each member of which will have a
different personality, level of expertise, level of interest in your case, and degree of
willingness to agree with your position.
3. The politics of the formal hearing are different than the politics of the informal
review. Pressures may cause more difficulty in winning your case.
4. The use of the formal procedure creates an adversary role for the assessor, who may
slip easily into that role.

Procedures

 Every board has a procedure for hearing appeals. Get a copy of these procedures and
review them so that you can tailor your presentation accordingly.

 Equally important is the actual observation of hearings of other appeals before presenting
your own. Because of the open meetings legislation, citizens usually have a right to sit in on the
appeals of others (however, despite open meetings legislation, actual decisions can still be made
conspiratorially behind closed doors and then given a public window dressing). You will gain
valuable information by observing. Here is what to look for:

1. What is the background of each member of the board – occupation, experience,
education, and expertise in the real estate field as a builder or appraiser?
2. Do the appeals board members assure that guidelines are adhered to? If not, do they
make allowances for some taxpayers that they do not make for others? In other
words, do they play favoritism?
3. Do the members show that political pressures affect their decisions/questions? Do
they deliberately place hurdles in the paths of the presenters, making it difficult for
them to carry out their appeal, or do the members strive to be objective and fair in
their deliberations?
4. Is there one “leader” among the members of the appeals board? Is a decision made by
vote, or by consensus?
5. Is there a difference in the reaction of board members to one kind of presentation
versus another? Do they really listen even to lengthy presentations, or are their minds
made up after the summary?

Once you have observed several hearings, you are in a position to compare those that
were successful with those that seemed to fail (although you may not know the final decision
until weeks after the deadline for your own appeal). Again, we have a list of questions for your
analysis:

1. Were successful appeals presented in writing or in person, and was the language
(either spoken or written) in common lay terms rather than in legal terms?
2. Did the presenters of successful appeals emphasize the property in question or the
properties used for comparison purposes?

3. What kinds of evidence were more palatable to the board, and how did the board
treat independent outside experts?
4. Did the board appear to be more receptive to the assessor than to the taxpayer?
5. Did emotional appeals gain sympathy, or did they work against the taxpayer?
6. If expert witnesses were known to be providing their services for a fee, did this
fact detract from the board’s positive reception of the evidence?
7. Did the board members ask questions? If so, did they interrupt the presenter or
was there a period at the end of the presentation for questions and answers? Were
the questions for clarification? Additional information?
8. What was the reaction of the board to any request by the assessor for an increase
in the assessment?
9. Finally, what was the board’s reaction to the taxpayer’s proposal for a new,
reduced assessment?

The Forms

 Prepare forms carefully, noting any carbon copies and where they should be sent. Attach
required documentation regarding your method of arriving at your property valuation – whether
the market approach or replacement cost approach. Attach required documentation regarding
overlooked exemptions, non-existent buildings, inaccurate computations or deterioration of your
property. Provide a written rationale for the appeal. However, you may not need to state every
bargaining point you have in the application papers. As in any negotiation, you do not want to
lay all your cards on the table until it is safe to do so.

 In the case of a formal appeal, if an appeals board needs additional information, they will
usually notify the taxpayer and give him or her time to provide the necessary information.
However, be sure that your district will allow revisions or addendums after the filing deadline.

 A taxing district may require that you complete everything in its entirety before the
appeals board will consider your appeal. In this case, there may be some information which is
not readily available, or which may actually be determined private, not public records. If this
information is crucial to your case, you may need the services of an attorney to get a writ of
mandate to include the information. Your knowledge of this technique of bypassing bureaucratic
stumbling blocks will also let the appeals board know that you will let nothing stop you in your
quest for justice.

 Make sure that your date of assessment coincides with the date of assessment used by the
assessor. A board may not go any further with your hearing if you have used a date several
months before or after the date used by the assessor.

Proof

 Unlike a felony or misdemeanor charge against a citizen, where the accused is presumed
innocent until proven guilty, a tax assessment and resulting tax burden levied against a property
owner is assumed by the legal system to be correct. Therefore, throughout the appeals process,
the burden of proof shifts to the “victim” in this case – the property owner.

 Similar to a court of law, the hearings process allows both sides of the argument to
present their proofs, and you can be assured that the assessor will be well prepared to argue the
correctness of his or her decision regarding your particular case. Your proof must be better than
the assessor’s proof and even though you will be using some of the same documents (gathered in
your research) that the assessor uses, you will have a different interpretation of the facts
contained in the documents as well as additional documentation. In fact, the appeals board will
be expecting your own opinion as well as your explanation of the basis for it.

Preparation Checklist

 Use the following as a checklist of strategy and materials to include in the preparation of
your appeal:

1. Carefully prepare to truthfully present clearly the grounds for appeal.
2. Keep your audience’s attention from wavering by pausing to ask if they have
questions. Keep your tone and demeanor sincere and professional without signs of
complaining about taxes in general. Since the board’s only jurisdiction is that of
property tax assessment, general complaints about high taxes are better presented
to those officials who decide tax rates.
3. Don’t include irrelevant facts or duplicate facts.
4. Include a copy of the records contained in the official public file.
5. Provide copies of all your papers for use by each member of the appeals board,
plus a couple of extra copies to handle any unexpected request.
6. Summarize in writing the important points of your appeal. Don’t rely on the
members of your audience taking complete or accurate notes for later review. It
may be several weeks before the appeals board makes its final decisions, and your
summary will be of great aid to them.
7. Use visual aids if appropriate – charts and graphs often tell a story more quickly
and more clearly than will spoken or written words.
8. Propose a recommended assessment. Don’t leave it to the board to simply reduce
– but to reduce it to a specific amount.
9. Convey your faith in the system and, without being overly dramatic, express your
trust that the board will do the “right thing” once they know the facts. Make the
presentation logical rather than emotional, although if true emotion is appropriate,
it should be expressed.1
10. Use humor sparingly and in good taste.

1 However, one consultant advises people to make their presentation a “performance,” including behavior
bordering on fanaticism, using the rationale that an appeals board, fearing further costly appeals, will cave in to the
demands of the taxpayer.

 While in general we do not recommend such a course of action, if your capabilities support such a tactic, be
sure you have rehearsed your “act” and that you know more about each member of the appeals board than they may
know about you.

 Remember that you must not only “act” as though you are convinced of the correctness of your cause, but
also that you are convinced of the fairness and competency of your “judges” and of their concern for the poor,
downtrodden common citizen. If you can make it believable, the members of the board may not only appreciate your
expression of faith in them, but will try to find some way to reward it.

11. Give credit where credit is due concerning the assessor’s work. Keep your
disagreements to points of fact and interpretation rather than to an assessor’s
motives, sincerity, or other personality issues. However, sometimes appeals are
taken personally by an assessor regardless of how careful you word or present
your disagreement. People sometimes interpret the bare fact of disagreement as an
attack on their character. If you have prepared thoroughly, however, you will be
aware of how your appeal will be perceived. Refusing to engage in personality
dramas will strengthen your presentation.
12. Answer any questions from members of the appeals board truthfully to the best of
your ability. However, sometimes a member of the board may digress from the
issue of fair property tax assessment and ask a question regarding whether you
would sell your property for the value placed on it by the assessor. At this attempt
to throw you off base, simply remind the board that you are here to find a fair
property assessment, not to sell that property. Even though such a tactic by a
board is out of line and should be counterproductive from that member’s
standpoint, if you become flustered or indignant as a result, it will certainly not
help your case. Stay relaxed and look forward to a positive outcome.
13. Be sure to attach any required fee for the right to be heard. This is usually
nominal, perhaps $25.00. However, there may be more than one fee if your
property falls into more than one classification. Some districts base fees on the
value of the property in question. If an appeal involves more than one basis, there
may be additional fees. Usually, however, the fees required are small relative to
the amount of property tax in question.

The above compilation may seem elementary in some respects; however, one tax
expert estimates that up to one-half of appeals are thrown out simply because this
rudimentary information is not put together carefully.

Presentation

 Testimony of Expert Witnesses

 When making your presentation, you may need to include information regarding what
you paid for your property and the cost of any improvements you made. Your most important
information, however, may be your analysis of comparable sales. If necessary, persons involved
in the buying and selling arena can be subpoenaed to provide “expert witness” testimony
regarding the sales of comparable property.

 If you have used appraisers or other experts to research and prepare part or all of your
appeal, be aware of how the board will perceive their testifying on your behalf. It is one thing to
argue for your own legitimate self interest before the appeals board. But the testimony of a
consultant or appraiser or any other person who has helped you for a “piece of the action” in the
form of a percent of what they help you save, adds another element of self interest, but one
which an appeals board may view as “tainted” and therefore not legitimate. Find out ahead of
time how your particular appeals board deals with “outsiders” and be cautious in the use of their
testimony.

 Right to Question the Assessor

 Although protocol may require you to present your case in its entirety before the
assessor is questioned, you should insist that at any point in the proceedings you do have the
right to question the assessor in order to establish any number of inaccurate or inappropriate
judgments, such as lack of sufficient data, discrimination, inappropriate valuation method, etc.
You must be careful to tie these matters of fact to your assertion that the final valuation was
clearly wrong, therefore resulting in an unfair tax burden that the board must reduce.

 Although you may have researched thoroughly, the assessor still may bring in evidence
which is new to you. If you do not understand this new evidence well enough to respond at that
time, or if the tactic serves its intended purpose – to thoroughly confuse you – ask for additional
time to analyze the new evidence. A fair appeals board will extend to you that courtesy.

 
FURTHER APPEALS

 Every successive step of the appeals process becomes more rigid and more difficult.
Usually there are at least three levels of appeals, the last level being the court system. This level
is seldom necessary. But if your appeal is rejected after the formal hearing, you may decide to go
that route. You have already done the hard work of research and preparation; the time element is
the important consideration at this point.

 Your appeal to the court must use the same bases for appeal as presented at the informal
hearing, however. You may add evidence but not change the basic nature of the appeal. Also, the
issues in court may be of law rather than of fact. (A fact would be the number of rooms in your
home; a law would be the ratio applied for assessment purposes).

 Court deadlines must be met and you will probably want to employ the services of an
attorney. Although citizens can represent themselves, their knowledge of the court system
usually prevents them from doing so effectively.

 Consider that the rejection of your claim by the appeals board may, in fact, be the right
decision before taking on the added expense and the time of a lawsuit.

 
SUMMARY

 The appeals process, while usually of a quasi-legal (and sometimes legal) nature, can be
effectively utilized by any taxpayer. While the informal aspect of the process can be more
efficient in terms of both time and cost, it is not guaranteed to be the best route, and taxpayers
must thoroughly research all aspects of the process, from research through final decision, in
order to decide whether to make the informal appeal their main thrust.

 Even the informal appeals must be well prepared, thoroughly documented, precise in
accuracy and detail, and contain a demand for adjustment/correction. Approaching the assessor
with a legitimate appeal in a non-adversarial manner which is educational and informationseeking
rather than confrontational and blame-seeking could achieve the desired goal then, and
nothing further would be gained by making a public spectacle out of what could be a private
undertaking.

 However, the formal appeals process may be the only effective and/or legal point of
beginning allowed by the rules of your district. The taxpayer can choose to be intimidated by its
formality, or encouraged by the fact that it is a citizen’s right to jurisprudence and the fact that
the vast majority of citizens who have pursued that right have achieved satisfaction in the form
of property tax reductions.

 If the entire process is approached as a problem-solving exercise rather than a
competition to determine who is right, it can have positive results. Confrontation/ competition
often produces impasses, and win/lose outcomes. Problem solvers usually see their involvements
as a joint effort to reach a solution which will be fair to all.

GOOD LUCK!

GLOSSARY

Terms and Definitions

ad valorem

A latin term meaning “at value.” Thus, when applied to the taxing structure, meaning that taxes
should be assessed according to the true market value of the property.

appeal

An appeal is a request by a taxpayer for the taxing authority (assessor or taxing district) to
review and make an adjustment on their property assessment and resulting tax.

appraisal

An estimate of current value of a property. When applied to property for tax purposes, this
estimate may be expressed as 100% of that value, or as a fraction.

appraisal district

In large governmental units, the appraiser may need to divide the geographic area into districts,
and appraise one per year, using that year’s appraisal as the basis for estimating
increases/decreases in value for the entire governmental unit.

appraiser

A professional in the field of property valuation, usually certified by a national accrediting
agency. An assessor may or may not also be a certified appraiser.

assess

The practice of assigning a value to a property for the purposes of taxation.

assessment process

First the value of a property is estimated; then a levy is placed against the property by the local
governmental unit for purpose of generating revenue to pay for the local government’s operating
expenses and for providing services to the community.

assessment ratio

The percentage of full value used by a local governmental unit for assessing the property tax.

assessment date

The value of all taxable property must be assessed by a certain date for tax purposes. Any appeal
must base an estimate of value on that same date.

assessor

An elected or appointed official who represents a governmental unit when assigning the value of
all property for the purpose of property taxation.

board of appeals

A body composed of members appointed by a governmental district who hear appeals and make
decisions regarding final property assessment for property tax purposes.

buyers and sellers

The principals whose activities determine the real estate market, which is used to assess the value
of properties.

character i s t i c s

Those things which make a property unique and which must be taken into consideration when
making comparisons with other properties which are similar.

classification

For property tax purposes, a taxing unit determines various classifications of property, such as
residential, rural, industrial, commercial, rural and exempt properties.

comparable properties; comparable sales

Those properties which are similar to a specific property, which have been sold on the open
market. One can determine the market value of the specific property by comparing the specific
property to the similar ones, thus using a comparable sales approach to valuation.

data bank

A computerized record of sales and other records which may be used for appraisal purposes. It
can also include non-computerized records.

depreciation

Over time, the process by which properties usually become less valuable.

equalization

The process whereby a taxing district attempts to more equitably distribute the property tax
burden. Also called the ratio.

evaluate

See appraise.

fiscal year

The fiscal year may be a calendar year or any other one-year period of time, used by a
governmental unit in budgeting, providing services and …levying taxes.

formal appeal

The process specified in the rules and procedures of a taxing district by which taxpayers may
appear before a board of review or an appeals board to request an adjustment on their property
tax assessment.

fractional assessment

The practice of assessing properties at a certain percent of their true market value for taxing
purposes only.

improvements

In real estate terms, an improvement is a permanent structure attached to the land. Although the
assessment may state: “land and improvements,” the term only refers to things like houses,
garages and other outbuildings, paving, swimming pools (usually only in-ground pools), etc.

informal appeal

To request a review directly with the assessor rather than waiting for a hearing before an official
board of review or appeals board.

legal description

The description on the property tax statement which identifies your land by geographic location
(plat, range, town, lot, block, subdivision, metes and bounds). The description should match that
on your deed or land contract.

legislated tax rate

Each state legislature determines the maximum rate at which a district may tax property. The
rate is usually expressed as dollars per hundred or thousand of valuation. Also called the
nominal rate or statutory limit.

l i s t i n g

An agreement between a property owner and a real estate agent which authorizes the sale of a
property, specifying the price, terms, and duration of the agreement.

market dat a

Similar to data bank. Records of property sales which are used to determine the value of unsold
property.

market place

For purposes of this manual, this term refers to the real estate market where properties are bought
and sold.

market value

The price of a property on the open market, assuming all buyers and sellers have access to the
market and are free to buy and sell without other constraints.

obsolescence – economic or market

The process by which a property is negatively affected by forces outside the control of the
owner, such as negative traffic patterns, deteriorating neighborhoods, adverse zoning, etc.

obsolescence – functional

The process by which a property may become outdated because of design or other feature, and
therefore become less valuable.

open market

When a property is made available to all buyers and sellers through a variety of means, the term,
open market, describes that condition.

progressive

When applied to the tax structure, a tax based on individual income is usually called progressive.

property record

The official record kept by the assessor which contains the legal description of a given
taxpayer’s property, the character of the land and buildings, and which specifies a market value
and assessed value.

reassess

When not all properties have been assessed at their true value, a reassessment program may be
instituted to revalue the properties. However, this is not the same as revalue in the following
definition.

revaluation program

The practice of making sure that each property carries an equal share of the tax burden; not the
same as reassessment to see that each is valued at their true market value.

replacement cost

A method for valuing properties by determining what it would cost to build the property at
current costs.

regressive

When applied to the tax structure, a tax based on the ownership of property regardless of
individual income is called regressive.

sales data

Similar to data bank and market data – the records, published or not, which are a matter of public
record available to all citizens, which lists the price, terms and conditions of properties sold.

statistical data

A sample derived from sales data which is used to make comparisons.

subject property

A term used to refer to a particular taxpayer’s property which is the subject of discussion,
verbally or on paper.

t a x d i s t r i c t

A division of a city, county, township or parish according to the services provided, such as
schools, water and sewer, fire protection, garbage pickup, and other services.

tax numbe r

The identification of a property numerically for record-keeping purposes by an assessor.

 
tax rate
The rate set by legislation or local ordinance which specifies the amount of dollars per $100 or
$1000 of assessed value that a taxpayer must pay.

t a x r o l l

The official listing of all properties in a taxing district, along with their current assessment;
certified by the taxing district after receipt from the assessor.

trending or indexing

The practice by which an assessor makes annual adjustments in assessed value of all properties
under his/her jurisdiction based on market conditions.

true market value

The value estimated by using the comparable sales approach, the replacement cost approach, or
another method arrive at the true market value upon which assessment will be based.

value range

The range of value, defined by a high and low dollar amount, between which a property may be
sold; for instance, a property may be valued in a range from $100,000 to $120,000.

State-By-State Tax Guide

Introduction

Every states taxes real estate unless expressly exempt. In addition, many states tax
personal property or tangible personal property, unless expressly exempt.

Common exemptions for personal property include:

• Household furniture and effects
• Farm utensils and tools of a trade
• Household items that are not attached to the structure or land
• Household goods and personal effects
• Wearing apparel
• Autos and small trucks which are otherwise taxed
• Recreational vehicles and motor vehicles

For specific, up-to-date property tax exemptions, policies, and practices, please refer to
the guide below and the individual information for the state in which your property is located.
Each state has its own rules, regulations, and practices.

Common Real Estate Tax Exemptions Include:

• Homestead exemptions. These apply to exempt amounts for real estate and/or
personal property for people under the age of 65.
• Some states provide tax relief and/or homestead exemptions for certain amounts
of assessed value of a homestead for disabled veterans, people over 65, or people
over the age of 60 who are a widow or widower of a qualified person. Other
states provide exemptions for the disabled, veterans, and families of military who
have died or are missing. Some states provide exemptions for veterans, or
servicemen and their families who are in active duty. Some states provide
exemptions for specific land used for certain farm purposes or crops, or live stock
purposes. Some provide exemption for boats and vessels, even bicycles.
• More unusual exemptions found in certain states include:
Motion picture studios, commercial forest plantations, college fraternities, and
school tax exemptions for persons exceeding a certain age.

Go to your states property tax information as listed below to find out answers to the following:

• Which county, school or municipal authorities have their own assessors?
• What procedures are prescribed by the state for conducting the assessment?
• When are assessments for property tax or real estate values made?
• What is the appeals procedure and is there an informal appeal procedure which
can begin the process?
• When can property be reassessed?
• What is the basis for the new assessment?
• What appeals are available for the assessment?
• When are tax payments due?
• Are assessments done using a computer program, or through individual
valuations?
• Is there a statewide manual which guides the assessment process?
• Are properties assessed at a percentage of the true market value?
• How often is each property reassessed?

State by State Directory

ALABAMA

AL Department of Revenue

Property Tax Division

50 North Ripley Street

Montgomery AL 36132

(334) 242- 1170

www.ador.state.al.us/advalorem/index.html

ALASKA

AK Office of State Assessor
Dept. of Community and Economic Development
Municipal and Regional Assistance Division
550 West 7th Ave., Suite 1790
Anchorage AK 99501-3510
Phone: (907) 269-4605

www.dced.state.ak.us/dca/osa/assessor.htm

ARIZONA

AZ Dep’t of Revenue

Property Tax Division

1600 West Monroe,

Phoenix AZ 85007-2650

602 542-3529

www.revenue.state.az.us/property/property.htm

ARKANSAS

AR Assessment Coordination Department

1614 West Third Street

Little Rock AR 72201

501) 324-9240

www.arkansas.gov/acd/index.html

CALIFORNIA

CA State Board of Equalization

Dep’t of Property Taxes, Assessment Standards Division

450 North Street

Sacramento CA 95814

916-322-3822

www.boe.ca.gov/proptaxes/proptax.htm

COLORADO

CO Board of Assessment Appeals
Room 315
1313 Sherman Street
Denver CO 80203

(303) 866.5880

www.co.gov/taxes.htm

CONNECTICUT

CT Office of Policy & Management

450 Capitol Avenue

Hartford CT 06106

860-418-6200

www.opm.state.ct.us/

DELAWARE

DE Department of Revenue

820 North French Street
Wilmington DE 19801

1-800- 292-7826 (toll free-DE only)

www.state.de.us/revenue/

DISTRICT OF COLUMBIA

D.C. Office of Tax & Revenue

Customer Service Center

941 North Capitol Street, NE, 1st Floor
Washington DC 20002

202) 727-4TAX

www.cfo.dc.gov/otr/

FLORIDA

FL Department of Revenue

Taxpayer Services

1379 Blountstown Hwy
Tallahassee FL 32304-2716

800-352-3671

www.myflorida.com/dor/property/

GEORGIA

GA Department of Revenue
Property Tax Division
4245 International Parkway, Suite A
Hapeville GA 30354-3918

(404) 968-0707

www.gatax.org/

HAWAII

Hawaii State Tax Assessor - Real Property Division

842 Bethel Street

Honolulu HI 96813

(808) 527-5510

www.co.honolulu.hi.us/rpa/index.htm

IDAHO

ID State Tax Commission

PO Box 36
Boise ID 83722

(208) 334-7736

www.tax.idaho.gov/propertytax/propertytax.htm

ILLINOIS

IL Property Tax Appeal Board

402 Stratton Office Bldg.
401 South Spring
Springfield IL 62706
(217) 782-6076

www.state.il.us/agency/ptab/

INDIANA

IN Department Of Local Government Finance
100 North Senate Ave, N-1058 (B)
Indianapolis IN 46204
(317) 232-3777

www.in.gov/dlgf/

IOWA

IA Department of Revenue

Taxpayer Services
P.O. Box 10457
Des Moines IA 50306-0457

(515) 281-3114

www.state.ia.us/tax/

KANSAS

KS Department of Revenue

Property Valuation Division
915 SW Harrison Street
Room 400N
Topeka KS 66612-1585

(785) 296-2365

www.ksrevenue.org/pvd.htm

KENTUCKY

KY Department of Revenue

Department of Property Valuation

200 Fair Oaks Lane

Station 32
Frankfort KY 40620
502) 564-8338

www.revenue.ky.gov/property_info.htm

LOUISIANA

LA Dept of Revenue - Tax Commission

5420 Corporate Blvd., Suite 107
P. O. Box 66788
Baton Rouge LA 70896

(225) 925-7830

www.latax.state.la.us/

MAINE

ME Department of Revenue

Property Tax Division
PO Box 9106

14 Edison Drive
Augusta ME 04332

(207) 287-2011

www.state.me.us/revenue/propertytax

MARYLAND

MD State Dep’t of Assessment & Taxation

301 West Preston Street

Baltimore MD 21201-2395
410-767-1184, toll free in MD 888-246-5941

www.dat.state.md.us/

MASSACHUSETTS

MA Department of Revenue - Office of Appeals

100 Cambridge Street
Boston MA 02114

(617) 626-3300

www.dor.state.ma.us/

MICHIGAN

MI Department of Treasury - Property Tax Division

Treasury Building
430 West Allegan

Lansing MI 48901

(517) 373-3200

www.michigan.gov/treasury/

MINNESOTA

MN Department of Revenue
Property Tax Division

Mail Station 3340
St. Paul MN 55146-3340

(651) 556-6091

www.taxes.state.mn.us/taxes/property/

MISSISSIPPI

MS State Tax Commission

P.O. Box 1033
Jackson MS 39215-1033

(601) 923-7631

www.mstc.state.ms.us/

MISSOURI

MO Division of Taxation & Collection
301 West High Street., Rm. 330
Jefferson City MO 65101

(800) 877-6881

www.dor.mo.gov/tax/

MONTANA

MT Department of Revenue

Property Assessment Division
P.O. Box 5805
Helena MT 59604-5805

(406) 444-4406

www.discoveringmontana.com/revenue/css/default.asp

NEBRASKA

NE Dep’t of Property Assessment and Taxation

1033 "O" Street, Suite 600
Lincoln NE 68508
(402) 471-5984

www.pat.nol.org/

NEVADA

NV Department of Taxation

Division of Assessment Standards
1550 East College Parkway
Suite 115
Carson City NV 89706

(775) 684-2000 (voice)

www.tax.state.nv.us/

NEW HAMPSHIRE

NH Department of Revenue Administration
45 Chenell Drive
Concord NH 03302-0457
(603) 271-2191

www.nh.gov/revenue/property_tax/

NEW JERSEY

State of New Jersey
Division of Taxation
PO Box 281
Trenton NJ 08695-0281

609-292-6400

www.nj.gov/treasury/taxation/

NEW MEXICO

State of New Mexico

Taxation & Revenue Dept

Property Tax Division

PO Box 25126

Santa Fe NM 87504-5126

(505) 827-0870

www.state.nm.us/tax/ptd/ptd_hom1a.htm

NEW YORK

NY Office of Real Property Services - Public Information Office
Sheridan Hollow Plaza
16 Sheridan Avenue
Albany NY 12210-2714

518) 486-5446

www.orps.state.ny.us/

NORTH CAROLINA

NC Department of Revenue

Property Tax Division
P.O. Box 871
Raleigh NC 27602

1-877-308-9103

www.dor.state.nc.us/practitioner/property/

NORTH DAKOTA

Office of State Tax Commissioner

Supervisor of Assessments

600 East Boulevard Ave

Bismarck ND 58505

701.328.2770 phone

www.state.nd.us/taxdpt/property/

OHIO

OH Department of Taxation - Personal Property Tax Division
30 East Broad St, 21st Floor

Columbus OH 43215

(888) 644-6778

www.tax.ohio.gov/

OKLAHOMA

OK Tax Commission
2501 North Lincoln Blvd.
Oklahoma City, OK 73194-0009

(405) 521-3178

www.oktax.state.ok.us/oktax/advalhm.html

OREGON

OR Department of Revenue

Property Tax Division

955 Center Street, N.E.

Salem OR 97301-2555

503-378-4988

www.dor.state.or.us/ptd.html

PENNSYLVANIA

Assessor’s Association of Pennsylvania

17 N. Front Street
Harrisburg PA 17101-1624

717-232-7554

www.pacounties.org/aap/

RHODE ISLAND

RI Division of Taxation

1 Capitol Hill

Providence RI 02908

(401) 222-1040

www.tax.ri.gov/

SOUTH CAROLINA

SC Department of Revenue - Property Tax Division

301 Gervais St.

PO Box 125

Columbia SC 29214

(803) 898-5490

www.sctax.org/Tax+Information/property

SOUTH DAKOTA

SD Department of Revenue & Regulation

Property Tax Division

445 East Capitol Avenue

Pierre SD 57501

(605) 773-3311

www.state.sd.us/drr2/propspectax/property/home.htm

TENNESSEE

TN State Board of Equalization

Division of Property Assessments

505 Deaderick Street
Nashville TN 37243-0277
Telephone - (615) 401-7777

www.comptroller.state.tn.us/proptax.htm

TEXAS

TX State Property Tax Board
4301 Westbank Drive
Building B, Suite 100
Austin TX 78746-6565

(512) 329-7901

www.cpa.state.tx.us/taxinfo/proptax/proptax.html

UTAH

UT State Tax Commission - Property Tax Division
210 North 1950 West
Salt Lake City UT 84134
Phone: (801) 297-3600

propertytax.utah.gov/

VERMONT

VT Department of Taxes - Property Valuation and Review Division

PO Box 1577

Montpelier VT 05601-1577

(802) 828-5860

www.state.vt.us/tax/pvr.htm

VIRGINIA

VA Department of Taxation
Office of Customer Services
Post Office Box 1115
Richmond VA 23218-1115

804-367-8031

www.tax.state.va.us/

WASHINGTON

WA Department of Revenue
Property Tax Division
PO Box 47471
Olympia WA 98504-7471

(360) 570-5864

www.dor.wa.gov/content/taxes/property/

WEST VIRGINIA

WV State Tax Department

Property Tax Division

PO Box 2389

Charleston VA 25323

(304) 558-3940

www.wvrevenue.gov/

WISCONSIN

WI Department of Revenue

Office of Assessment Practices

PO Box 8971, MS 6-97
Madison WI 53708-8971
(608) 266-7750

www.dor.state.wi.us/html/indiv.html

WYOMING

WY Department of Revenue and Taxation

122 West 25th Street

Herschler Building, 2W

Cheyenne WY 82002-0110

www.revenue.state.wy.us/