CHAP 11 REVIEW Q&A

Question 1

What are some of the benefits of an effective appeal process?

Answer 1

The benefits of an effective appeal process include:

• Fairness for the taxpayers, a core principle of an ideal property tax system.
• Accountability of the assessor, also a core principle for an ideal property tax system
• Potentially direct improvements in the quality of assessments
• Potential to uncover unrecognized property and market changes.
• Uncovering systemic issues and opportunities to improve data management or valuation process.
• Uncovering the need for legislative or policy change
• helping to clarify unclear legislation or complex valuation where generally accepted appraisal practices do not provide a definitive solution.
• Sharpening staff skills in both valuation and public relations.
• Public relations; an opportunity to demonstrate that assessed values are more than just number in a list.
• An opportunity to demonstrate the quality of assessments to stakeholders.

Question 2

What are some of the tests that can be used to establish whether or not there are grounds for an appeal?

Answer 2

Establishing whether or not there are grounds for an appeal may include the following tests:

• Comparing market rents for the subject vs economic rents from the assessor’s valuation.
• Comparing contract rents within the subject vs economic rents from the valuation.
• Comparing number of units and leasable areas vs data applied by assessor.
• Reviewing capitalization rates from market sales vs those used in the assessment
• Checking for specific issues affecting value including deferred maintenance not reflected in assessment.
• Reviewing recent sales of similar properties and comparing values on a per unit and per square foot basis.
• Reviewing median assessment to sale price ratios (ASRs) in the relevant market to determine whether the subject is being assessed at the same level as other properties.