How to Understand Real Estate Tax Appeals

Real estate values have many variables.

An appeal of a real estate tax valuation in most states requires a protest before a local appraiser prior to the appeal. After the appraiser hears the protest and the appraised value is still not correct or not in line with comparables (data for similar property), the next step is an appeal to the appraisal review board or the appellate governing board for your area. This process is complex, but the landowner can protest and appeal to reduce the appraised value of real property.

Instructions

1. Review the real estate tax notice to check for discrepancies. Compare the tax notice with the previous year or several years, and calculate the percentage of increase. If an error has occurred or if your appraisal reflects an increase greater than comparables in the area, file a protest, the first step to an appeal. According to the information on the State of Georgia website, four bases for appeal are taxability, uniformity of assessment, value and denial of homestead exemption.

2. File a protest within the time frame and in accordance with the rules provided with the real estate appraisal notice. This will protect your appeal, and the local appraiser will schedule an appointment to meet with you.

   Prepare for the protest meeting by locating the state regulations and reviewing the appraisal district website. Texas maintains detailed information about the appraisal process for property owners at the Window on State Government website. Appraisal information is public record and is available for comparison and review. Spend time locating properties in your area of similar age, size and quality that appraise for less per square foot, if the issue is value or uniformity of assessment.

3. Learn the terminology. The market approach to appraisal values reviews recent sales of similar real estate and values unsold properties based on comparisons. Less desirable features require subtractions and better qualities are valued higher, with adjustments made to the comparables. "The market approach indicates a range of possible values, rather than a precise figure," states the Pinal County, Arizona, government website. Strive for a range of value, not a single figure.

4. Attempt to get the appraised value of your real estate reduced at the local level in meeting with the appraiser. If the local protest is not successful, appeal the appraisal to the appraisal review board or the appellate board for your state. Some states call this a board of equalization.

5. Prepare a formal presentation for the appeal. The local appraiser will likely be there to oppose any reduction in appraised value and will have an opportunity to speak after your presentation.

6. Attend appellate hearings to see how the process works. Observe other homeowners making a presentation without an attorney or appraiser to speak on their behalf.

   Understand real estate tax appeals as a participant, from receipt of the appraised value through the protest, research, writing and appeal. There is no penalty or punishment for appealing real estate taxes. The worst case scenario affirms the tax as originally assessed, and the homeowner can protest and appeal again next year.

References

• State of Texas: Window on State Government: Texas Property Tax
• State of Georgia: Tax Guide for Appraisal Appeals
• Pinal County, Arizona: Department of the Assessor

Resources

• New York Times: State by State Property Tax Rates