can
build an argument with similar properties as proof in a prepared presentation,
you can informally argue the value will be very likely to agree if your
evidence is conclusive.
If
you want to hire a professional, hire an M.A.I. who is an appraiser that is of
the most senior designation for qualifications. An assessor will tend to have
respect for someone with professional credentials attending with you or
preparing the case with you. I don’t suggest bringing an attorney to an
informal meeting with an assessor because they want to dominate and assessors
act more aggressively. I’ve witnessed it all over the country.
But
if you are an attorney, I suggest getting your M.A.I. or hiring a local M.A.I.
and start the representation in property taxation. It’s a great model for legal
income, especially on a contingency fee basis and price volatility will keep it
that way.
I
do think that knowing what the state’s laws are for property tax valuations is
critically important to be successful in arguing for reduced value and for
protecting your future. I expect that some states will change laws and start to
focus on the cost and income approach to value to confuse the matter even more.
I give this a 100 percent chance of happening; it’s just a matter of when.
Mayors don’t like firing policemen and governors like building bridges,
especially when they collapse.
Right
now it costs way more to replace homes and buildings than what they are worth and
incomes on rental real estate are plummeting. If states legislate to weigh
equally with market, the cost and income approach to value property for
taxation will be an even bigger mess and easier to win cases in my opinion (but
even more confusing to folks that haven’t read this).
Knowing
my faith in government, I suspect there will be more new property tax
legislation than ever before that will increase the confusion for the taxpayer
and increase revenues.
Semi-formal
hearings in some states happen annually and in all states happen during
re-valuations. If you meet with your assessor during the designated period
during a re-valuation and he says no to a lower value, then the next step is to
go to the local Board of Equalization and Review. The title might not be
exactly the same, but the board may be idiots or officials that really know
their stuff. It’s great to see them at work before your hearing, which is open
to the public.
For
instance, if you are in Pooler, Georgia where Boss Hog lives, he may just deny
you for no reason and his kangaroo court could see if you are willing to go the
state board, it happens. Or you have a great case and the board says yes to
your reduced value and you save $13,000. We may see a period where assessors
are like insurance companies and will deny claims and make everyone either go
to the next level or go away.
Here’s
a rule of thumb, the larger the city and the more spending scheduled, the
harder the fight. One nice thing about disputing property tax values is that governments
are adroit at caring for themselves so the appeals and offices are usually in
nice buildings.
The
state level of appeal is an entirely different ball game and the case runs much
like a formal court case.
written by Brad Richdale
blog founded by Bradford Richdale
