Understanding the Property Tax Appeal Process with David Nettles

Property tax appeals can be complex and daunting for many homeowners and commercial property owners. To shed light on this subject, we spoke with David Nettles, a seasoned property tax consultant with over 20 years of experience in the industry. Nettles provided invaluable insights into the property tax appeal process, offering a step-by-step guide to help property owners navigate this challenging terrain.

The Importance of Understanding Property Tax Assessments

Before diving into the appeal process, it’s crucial to understand what a property tax assessment is. Local government assessors evaluate the value of a property to determine the amount of property tax owed by the owner. This assessment is based on factors such as the property's size, location, and market conditions.

However, these assessments are not always accurate. Nettles points out, "Assessors use mass appraisal techniques that may not always reflect the true market value of a specific property. This can result in over-assessments and, consequently, higher property taxes."

Recognizing the Right Time to Appeal

The first step in the appeal process is recognizing when an appeal is warranted. According to Nettles, property owners should consider appealing if they believe their property's assessed value is significantly higher than its market value. "It's essential to compare the assessed value with recent sales of similar properties in the area," he advises.

Additionally, changes in the property’s condition, such as damage or significant depreciation, can also justify an appeal. Nettles emphasizes, "Any factor that adversely affects the property’s value should be considered when evaluating the need for an appeal."

Preparing for the Appeal

Once you decide to appeal, preparation is key. Nettles outlines several steps to ensure a strong appeal:

1. Gather Evidence: Collect data on recent sales of comparable properties, also known as "comps." This information is crucial in demonstrating that the assessed value is higher than the market value.

2. Document Property Conditions: Take photographs and provide documentation of any damage or issues that negatively impact the property’s value.

3. Review the Assessment Record: Obtain a copy of the assessor's property record card to check for any errors in the recorded details about your property.

4. Professional Appraisal: Consider hiring a professional appraiser to provide an independent valuation of the property. This can serve as strong evidence in your appeal.

Filing the Appeal

Filing an appeal involves submitting a formal petition to the local property tax assessor’s office. Nettles advises, "Each jurisdiction has specific deadlines and requirements for filing an appeal. It’s crucial to adhere to these guidelines to avoid having your appeal dismissed on technicalities."

The appeal petition typically includes:

• A written statement explaining why you believe the assessment is incorrect.

• Evidence supporting your claim, such as comparable sales data and property condition documentation.

• Any additional forms or documentation required by the local jurisdiction.

The Hearing Process

After filing the appeal, a hearing will be scheduled. This hearing is an opportunity to present your case before a review board or hearing officer. Nettles suggests, "Be prepared to present your evidence clearly and concisely. Having a property tax consultant or attorney represent you is often beneficial, especially if you are unfamiliar with the process."

During the hearing, you will have the chance to:

• Explain why you believe the assessment is incorrect.

• Present your evidence, including comps and any professional appraisals.

• Answer questions from the review board or hearing officer.

Possible Outcomes

There are several possible outcomes to an appeal. The review board may:

• Lower the Assessment: If they agree with your evidence, they may reduce the assessed value of your property, resulting in lower property taxes.

• Maintain the Assessment: If they find your evidence insufficient, they may uphold the original assessment.

• Increase the Assessment: Although rare, there is a possibility that the review board could determine the property's value is higher than originally assessed.

Nettles notes, "While an increased assessment is uncommon, it's a risk property owners should be aware of when deciding to appeal."

Post-Appeal Steps

If the appeal is successful and the assessment is lowered, the reduced property taxes will apply to the current tax year. However, if the appeal is unsuccessful, property owners may have the option to escalate the appeal to a higher authority, such as a state tax commission or court.

David Nettles advises, "Carefully consider the costs and potential benefits of further appeals. Sometimes it may be more practical to accept the review board's decision and focus on future assessments."

Conclusion

Understanding the property tax appeal process is crucial for property owners looking to ensure their tax burden is fair and accurate. With guidance from experts like David Nettles, navigating this process becomes more manageable. By recognizing when to appeal, preparing thoroughly, and presenting a compelling case, property owners can effectively challenge over-assessments and potentially save significant amounts on their property taxes.