How To Appeal Your Property Tax Assessment

Every year, property owners receive a tax assessment from their county or city. Property taxes, or “ad valorem” taxes, are based on the value of your property. They fluctuate each year, depending on the property’s assessed value. Property taxes fund schools and other community projects.

For some owners, receiving their property tax notice is a major shock. Most owners know they need to pay property taxes, but didn’t know it was going to be that much. In some states, such as California, laws cap property taxes and reassessment at the time of sale. Others assess taxes annually, so your taxes can go up or down depending on the property’s current value.

That’s the bad news. The good news is you can sometimes have your property taxes reassessed. You must act quickly to challenge your property tax bill, so don’t wait if the assessed value seems too high.

Review Your Assessment Notice

An ad valorem tax is a tax on any real or personal property based on the sales value. Like a sales tax, the county assessor calculates the property’s fair market value and taxes it accordingly. A property’s assessed value should be comparable with similar properties and what a buyer would pay under normal conditions. In other words, there are no exemptions for distressed properties or weak housing markets.

Depending on your state, some types of real property are not included in property tax assessment. Religious properties, nonprofit entities, and homestead exemptions may exist in some locations. In some states, fixed machinery and equipment within a taxed business property are not themselves taxed.

The assessed value is not the final word on your property tax. As with anything else the government does, you have the right to appeal the assessment. A review of the assessment notice may give you grounds for an appeal.

Grounds for Assessment Appeal

The assessment appeal process begins with a review of your notice. Your first step is to look for discrepancies or errors in the notice itself. Common grounds for appeal include:

• Factual errors in the assessment: The assessor got the square footage of your property wrong, listed the wrong number of rooms, or made other material errors that affected the valuation of the property
• Valuation errors: The assessed value is substantially higher than comparable properties sold in the area
• Statutory errors: The tax levied does not meet statutory requirements according to state law, such as California’s capping of the annual increase of the property’s assessed value at 2%
• Uniformity errors: The assessor rated your property at a higher market value than comparable properties in similar condition

Once you’ve located possible grounds for a property tax assessment appeal, it’s a good idea to contact a tax attorney for legal advice.

Making Your Case for Appeal

Your first step is filing an appeal form at your state assessor’s office. It’s a good idea to have a legal professional help you find the right form and ensure it’s filled out correctly. There are strict deadlines for filing your application, often 60 or 90 days from receipt of your tax notice. There may be exceptions for disasters or other emergencies.

You will need supporting documentation to bolster your claims. Depending on what you’re claiming is the reason for the appeal, you’ll need different kinds of documentation. For example:

• Comparable sales: Evidence can show the assessor overvalued your property. You will need either proof of similar homes in your neighborhood selling at lower prices, or comparable homes in other locations. When you do this, the other properties and areas must be reasonably similar to your own. For instance, you cannot compare your neighborhood in rural Alabama to Beverly Hills, California.
• Comparable conditions: Photographic evidence can show proof that your property is in considerably worse condition (old roof, cracking foundations) than a lower-assessed neighbor. Assessors are not realtors and do not consider the structural aspects of your property. Keep in mind that an assessment does not include cosmetic factors like paint or fixtures.
• Using a professional independent appraiser: If the appraisal seems grossly unfair, consider having a professional appraiser provide a second opinion on the property value. Having an analysis from a respected appraiser can be helpful.

Once you have this evidence in hand, you can begin the appeals process.

The Property Tax Assessment Appeals Process

The county assessor’s office has an informal appeals board to hear taxpayer complaints. Depending on your county, these may require appointments or only be open on certain days. You can find these hearing dates and how to petition the county board at the tax assessor’s office website.

For more serious matters, you will need to make a formal appeal. The County Board of Equalization often conducts these hearings as a neutral third party between taxpayers and the County Assessor. The Board can review your documentation and make a decision on your request.

If the Board cannot resolve your issue, the final step is a judicial review. You may have grounds for legal action against the county. A tax attorney can explain what you need to do to sue the county in civil court.

Hiring a Property Tax Attorney

The deadlines for filing a property tax appeal are strict and somewhat confusing. For instance, in Los Angeles County, for new construction or a change of ownership, you must file a request within 60 days of the date of your tax notice. If you are an owner challenging the appraised value, you must file an appeal between July 2 and November 30 of the year in question, although you can still request an informal reappraisal.

Having an attorney who can explain these puzzling, contradictory deadlines is extremely useful and ensures that all your paperwork gets in on time. They’ll know which petition forms you should use and what evidence you should include with your form. If your case requires a formal hearing or judicial review, your attorney can present the case to the Board. In situations where a case goes to trial, having an attorney argue your case can make the difference between success and failure.

Since tax laws and property assessments vary between jurisdictions and years, a skilled tax attorney is essential to help you appeal your tax assessment.

Get Legal Advice From a Local Tax Attorney

Appealing your property taxes requires someone who understands the local rules for real estate, property assessment, and filing appeals. A local tax attorney knows the state laws the assessor must follow and can represent you in your challenge. Contact one in your area if you need to have your tax bill reviewed.