Why we need to be diligent in conducting property tax assessment reviews.
There are situations where, because of the ridiculous run up on property values over the past few years, a property’s assessment may have lagged behind the market and may have been under assessed. Even with the recent dramatic declines in property values the property may still be equitably or under assessed.
Let’s say that you receive your 2009 assessment notice indicating the assessment of a property to be $1,000,000. The property was assessed at $1,000,000 for the 2008 tax year as well. Some might immediately say that there is no way the property is worth the same amount in 2009 as it was in 2008 and an appeal needs to be filed. However, let’s say that in 2008 the actual market value of the property was closer to $1,500,000, not the $1,000,000 that it was assessed at. If the value of the property has decreased by 30% between 2008 and now, the property might still be fairly assessed at $1,000,000.
Without a proper review of the current and past market values of the property you might find yourself trapped into an unwarranted appeal. At best, money and resources are dedicated to an appeal with no savings potential and, at worst, you could find yourself fighting an increase.
There are many savings opportunities out there and, of course, we need to be aggressive in discovering and pursuing them. However, we also must maintain a rational and diligent approach.
Tags: 2009 Tax Appeals, Assessment, Property Tax, Property Tax Appeal, Property Tax Protest, Tax Assessment
Question: a bank forcloses on property and wins a judment bid for their interest in the property, which was purchased for 97,000….but the judgment bid is $137,000 including their “interest in the property”…..would it be fair for the tax assessor to then revalue for tax purposes based on the judgment bid…..while dozens of similar properties are still assessed at appr. 97-99,000….thanks