The Appeal is in the Details

Because the tax appeal process varies among states and even municipalities, several readers took exception to the details of a recent article that told real estate professionals to suggest that their clients explore property tax appeals in the face of falling home prices.

John Garippa's advice (“Time to Appeal,” Nov. 2008, page 47) telling real estate professionals to have their clients seek redress on their present tax valuation is incomplete and misleading. In Connecticut, home owners are permitted to challenge values only for the year in which the revaluation is based. As a sworn member of our Connecticut town's tax assessment appeals board, I would expect many other states to have similar statutes. We presently revalue every five years. Printing such incomplete data is damaging to the membership.

—Paul Jensen, e-Pro®, Coldwell Banker Frascatore Realty, Shelton, Conn.

Appeals Not So Simple

The article by Mr. Garippa provides an optimistic view of the tax appeal process. The prospect of winning the case is less than one would think.

In Arizona the tax assessments are sent out in the first quarter of the tax year. They provide information regarding the assessed value but not the bill. The data used to calculate the assessed value dates back 12 to 18 months by statute. 

You have a limited amount of time to proceed with an appeal but do not have the information (actual billable amount) to determine whether an appeal is necessary. In late September, when you receive the actual bill for the taxes due, you may find the assessed value has dropped but your taxes went up anyway because the statute allows the assessor to adjust the multiplier up to compensate for the falling market values (assessed value) to prevent a decrease in the revenue stream to the state. 

The fact that you have an appraisal or broker price opinion does not help your appeal; assessors can choose any group of homes in an area to support their assessment. If you purchase a home at a reduced value, do not expect that data to be used as your assessed value. The assessor is not bound to take your specific property sale into consideration. The assessment and system are not structured to reflect current market values but to extract the maximum tax amount on a continuing uninterrupted basis. Take the time to go to a tax appeal hearing to best assess your chances for success before you spend your money on the appeals process or counsel.

—Paul Bartoletti, Windermere West Valley Partners, Goodyear, Ariz.

Writer John Garippa replies: My article was written with a national scope in mind for a broad range of property owners throughout the United States. There will always be some local rules that diverge from state to state. For example, as a reader points out, you have to wait five years to contest the base-year assessment in Connecticut, a situation that is, I believe, unique to that state.

As I recommended in the article, the first step in any tax appeal is always to go to the assessor's office and determine the basis of the assessment and the dates of value relied upon in making that assessment. It is my hope that this article will engender a professional response by property owners in their tax appeals. It will become exceedingly difficult for boards of assessment to deny properly presented arguments for lower assessments when specific evidence is offered to support that appeal. In those areas where there is a lack of fundamental fairness, judgments should be appealed to a higher court.

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