What Is the Process for Contesting Property Tax Assessments?

Property tax assessments are used by local governments to determine how much a property owner owes in property taxes. These assessments are typically based on the value of the property, but in some cases, the valuation may be inaccurate, too high, or unfair. Property owners have the right to challenge or contest an assessment if they believe it is incorrect. The process for contesting property tax assessments involves a formal procedure with clear steps, deadlines, and required documentation.

Steps to Contest a Property Tax Assessment

1. Review the Assessment Notice:
   • Understand the Assessment: Property owners will typically receive an assessment notice from the local tax assessor's office, which outlines the assessed value of their property for tax purposes. The notice will specify the amount of tax due based on this assessment and often include information about how the property was valued.
   • Verify the Details: Ensure that the details on the assessment are correct. Check for any errors in the property description, such as incorrect square footage, number of rooms, or improvements. Mistakes like this can lead to an inflated property value.
2. Research Comparable Properties (Comps):
   • Find Comparable Properties: Research comparable properties (comps) in the same area that have similar characteristics (e.g., size, location, age, and condition). These properties should have similar values, which can help determine if your property has been overvalued. Real estate websites, local property records, and appraisals may provide useful information on property values in your area.
   • Gather Supporting Evidence: If you find comps that are valued lower than your property, this can be compelling evidence to present in your appeal. It's also helpful to gather any relevant market trends or sales data that might indicate the assessed value is too high.
3. Check the Appeal Process and Deadlines:
   • Understand the Appeal Process: Every locality has its own procedures for contesting a property tax assessment. Start by reviewing the local tax assessor’s guidelines or website to understand how the appeal process works in your area. This will include information on where to file the appeal, the forms required, and any relevant deadlines.
   • Check the Filing Deadline: Property owners usually have a limited window to contest their property tax assessments, often 30 to 60 days from the date of receiving the assessment notice. Missing this deadline may prevent you from being able to appeal for that tax year.
4. Prepare and Submit Your Appeal:
   • File an Appeal: In many areas, property owners can file an appeal with the local Board of Equalization or a Tax Appeal Board. Some regions may have a dedicated tax assessment office where appeals are handled. The appeal will require you to submit a form, which may be available online or at the tax assessor’s office.
   • Provide Supporting Evidence: Your appeal should include evidence that supports your claim that the assessment is incorrect. This might include:
     • A recent appraisal of the property by a licensed appraiser (which is typically a strong piece of evidence).
     • Data on comparable properties showing lower valuations.
     • Information on market conditions (e.g., declining property values in the area).
     • Photos or reports of property defects (e.g., damage or wear that affects the property's value).
   • Explanation of Discrepancies: Be clear about why you believe the assessment is inaccurate. This could involve pointing out errors in property details or arguing that the methodology used by the assessor was flawed.
5. Attend a Hearing or Meeting:
   • Pre-Hearing Conference or Informal Review: In some areas, there may be an opportunity for an informal review or pre-hearing conference with the assessor’s office before a formal hearing. This allows property owners to present their case directly to an assessor or a tax representative to see if the issue can be resolved without a full hearing.
   • Formal Hearing: If the issue is not resolved informally, a formal hearing may take place before the Tax Appeal Board or a similar tribunal. During the hearing, you will have the opportunity to present your evidence and make your case in person. The assessor may also present their findings, and the board will make a ruling based on the evidence provided.
   • Prepare for the Hearing: If the appeal goes to a hearing, make sure to bring all your evidence, including an appraisal, comps, photographs, or any other documentation that supports your claim. Be prepared to explain why you believe the assessor’s value is incorrect and how your evidence supports a lower valuation.
6. Wait for the Decision:
   • After the hearing, the board or tribunal will issue a decision. If the ruling is in your favor, the assessor’s office will adjust the property value and issue a revised tax bill based on the new assessment. In some cases, the property tax appeal board may also reduce the assessed value, but not to the level requested by the property owner.
   • Receiving a Rejected Appeal: If the appeal is denied, you may have options to take further action, such as filing an appeal to a higher court or pursuing alternative dispute resolution mechanisms, depending on the laws in your area.
7. Pay the Adjusted Taxes:
   • If your appeal is successful and the property assessment is lowered, you will receive an updated tax bill reflecting the new, reduced value. Be sure to pay the adjusted amount by the due date to avoid penalties and interest.
   • Refund of Overpaid Taxes: If the tax assessment is reduced after you have already paid your taxes, you may be entitled to a refund of the excess amount you paid. This is typically handled through the local tax assessor’s office or the treasurer’s department.
8. Consider Further Legal Action (if necessary):
   • If your appeal is unsuccessful and you believe there are significant grounds for contesting the assessment, you may have the option to take the matter to court. Some jurisdictions allow property owners to file an appeal in property tax court or another judicial forum if the tax appeal board's decision is unfavorable.
   • Keep in mind that pursuing legal action can be costly, so weigh the potential savings from a reduced assessment against the expenses involved in a legal battle.

Example:

Emily receives her annual property tax assessment notice, which states her home is valued at $350,000. She believes the value is too high, given that homes in her neighborhood are selling for around $300,000. After reviewing comparable sales, Emily finds several homes similar to hers that recently sold for much less.

Emily decides to contest the assessment. She files an appeal with her local Board of Equalization, submitting her findings on comparable property values, a recent appraisal, and photos of the home’s aging roof and outdated appliances. After attending a formal hearing and presenting her case, the board agrees with Emily's argument and lowers the assessed value to $310,000. As a result, her property taxes are significantly reduced, and she receives a refund for the overpayment.

Conclusion

Contesting a property tax assessment involves a series of steps, including reviewing the assessment notice, gathering evidence, filing an appeal, and possibly attending a hearing. Property owners have the right to challenge assessments they believe are inaccurate, and doing so can result in significant savings if successful. Understanding local laws, being thorough in gathering evidence, and following the appeal process carefully are key to a successful challenge. In cases where the appeal is denied, property owners may have further recourse through higher courts, though this option can be time-consuming and costly.