Appealing Your Property Tax Value

Statistics show that approximately 33 percent of property tax appeals receive a positive decision.  Saving a few hundred dollars per year on your property tax may not seem very much; however, it can add up to thousands over the period of owning your home.  Even though you need to follow the appeal process, you do not need any special skills to appeal property tax value. 

The Appeal Process

It is important to file your appeal correctly and to follow procedures in order to receive positive results.  The first step is to file an appeals petition with the county clerk’s office between the date the tax statement is mailed to you and December 31.  If December 31 falls on a weekend or a legal holiday, you have until the next business day to file your petition.  You can download the forms online from your state’s Department of Revenue, or you can obtain them from the county clerk or county assessor’s office.

You will need to submit evidence to support your opinion of the property’s real market value (RMV).  Supporting evidence may include a comparison of comparable neighboring properties that have sold in your neighborhood recently.  Another option is an independent appraisal.  Homeowners often resort to comparing the taxes they pay on their property to the taxes their neighbors pay.  This is typically not sufficient to support an appeal.

The following three situations are examples in which your appeal may receive a favorable decision.  One is if the board’s RMV is lower than the current value on the roll.  The second example is when you have made improvement modifications to your property, and the board has reduced the new construction’s value.  Finally, the third situation is when there is a reduction of your property’s RMV, and the property’s taxes must be reduced in order to meet constitutional limits on the general government and education categories of your taxes. 

The Board of Property Tax Appeals (BOPTA) typically holds hearings between the first Monday in February and April 15.  If you chose the option to be present at the hearing, you will receive a letter from the BOPTA informing you of the date, time, and location.  If you chose on the appeals form the option not to be present, the board will reach a decision based on the evidence you submitted with your application.  You can expect to receive written notification of the decision by mail.  If you are not satisfied with the decision, you have the option and right to appeal.   

If you have a first or secondary industrial property on which you would like to appeal the Department of Revenue’s (DOR) appraised value, you may file your request with the Magistrate Division of the Tax Court.  The guidelines stated previously apply.  However, to apply the value of other centrally assessed property or of utilities, you need to file your appeal on or before June 15 of the assessment year. 

Late Filing Fees

You may also appeal penalties for late filing of a current year’s property return.  If you can prove that you had enough cause to file late, the board may waive in part or all of the late filing fee.  Additionally, if you filed a return for the first time, and it happened to be the year that the return was required to be filed, the board may waive part or the entire late filing fee.    

Property Tax Attorney

Many property owners choose to hire the services of a tax attorney and avoid the frustration of appealing themselves.  The American Property Tax Counsel (APTC) has affiliates nationwide, both in the United States and Canada.  If you have an appeal property tax value question or concern, you may perform a search by state to locate a tax attorney near you. 

Appeal Property Tax Value Tips

Some property owners don’t pay their taxes on time, thinking that because they filed an appeal, they are not obligated to meet the deadline.  This is incorrect.  Failing to pay your property taxes on time may result in late charges and other possible fees, even if you later receive a favorable decision. 

Prepare for the hearing ahead of time if you choose to attend.  Have all your supporting documentation in order, so you appear knowledgeable and informed.  The board’s decision on a property tax value is normally based on opinion.  You will need to present your evidence in a way that wins the board over, or at least enough members to grant you a benefit.       

Consider consulting with a real estate agent if you do not have the time to gather comparables.  Moreover, although a professional appraisal is the ideal evidence to present at a tax appeal hearing, the fee may be equal to the savings from lower property taxes.  You may want to consider whether it is worth the time involved.

In conclusion, any property owner that does not agree with his property tax value assessed by the tax assessor’s office can submit an appeal petition.  He may choose to attend the hearing, or simply receive a notification informing him of the decision.  If he finds the process time consuming and overwhelming, he may choose to hire the services of a tax attorney.  Regardless of the method you use to appeal, if you receive a favorable decision, you could save hundreds of dollars because of your decision to appeal your property tax value.




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