Well, it has arrived; more bad financial news. The reappraisal notice from the County Assessor is here informing you of the new appraisal on your home for 2009 taxes. The appraised value is up considerably and you see higher taxes. You’re shocked and maybe even outraged. You disagree with the new value and feel like the value is much less.
The question now is, can you protest the value and assessment of your home by yourself without professional help? Can you reduce your property taxes?
Sure you can. It may be difficult, but taxes saved can be worth it. Reappraisals are made on four (4) year cycles which means that unless you do some new construction to your home during this period, the assessment will probably not increase again for four (4) more years. Therefore, you can multiply the first year’s tax savings times four (4).
Tennessee taxpayers are very fortunate because we have a very liberal protest and appeal process. Numerous steps are afforded us to appeal excessive values and assessments. If the taxpayer has gone through all the available administrative levels of appeals and has not achieved satisfactory results, the taxpayer probably didn’t really have a case for reduction.
If your home is located in Shelby, Davidson, or Knox County, our firm has prepared additional websites which will provide you with detailed information on the property tax system, the Assessors’ offices, how to get to their websites, and information on the equalization boards in those counties. At these sites you will also find information on The State Board of Equalization members and that Board’s appeal system.
As you go through the steps of protesting your assessment, you will find some of this information very helpful, You may get there by the using the following links: www.memphispropertytax.com, www.nashvillepropertytax.com, www.knoxvillepropertytax.com.
Step Number 1. Review Notice and Gather Information
First, read the notice closely. Do not miss any filing dates or fail to follow instructions.
Obtain a copy of the Assessor’s sketch and interior records of your home. Check this information. The Assessor has to maintain such records on all properties and it is impossible to do so for so many properties without making some errors. Therefore, you may discover an error has been made which caused your value to be higher than the proper amount. Point this out to the Assessor and it will be corrected. Sometimes it is as simple as that.
Other times, new measurements must be taken and the property has to be inspected by the Assessor. Just make sure you’re right and the Assessor’s information is wrong before you ask for a correction of any errors. Taxpayers have had their assessments increased because the Assessor found additional property or corrected errors made in the taxpayer’s favor.
Also, check the grade the Assessor has classed your home. By grade, I mean the assessors have established quality levels of construction by using a number system. This is sometimes an almost effortless way for a tax reduction. After explaining to the Assessor why your home should not be graded as high, a change just might be agreeable. If the Assessor doesn’t agree, you can make the grade disagreement part of your arguments in later appeals.
Request the comparable sales the Assessor used to value your home. You are entitled to these comparable sales. Review and use them to your advantage. Some or all of these comparable sales may not be truly comparable to your home and adjustments may be necessary. In addition, gather information on your neighbors’ values and assessments. Check sq. ft. values and find out about interior information such as modernizations, fireplaces, bathrooms, etc.
You will need this information. The assessment and sq. ft. information are available on the Assessor’s website.
Step Number 2. Request a Review by the Assessor
The Assessor will allow you to request an informal review of the appraisal. This may solve the entire problem without taking further action. Do not forget to mention deferred maintenance in your property. You know best what needs to be fixed in your home; i.e. outdated kitchens, bathrooms, cracks in foundation, rotten wood, leaky roof, drainage problems and any others you can list. Document these items with photographs. If possible get estimates to repair them.
Also, the comparable sales that the Assessor has relied upon may all have been modernized and all repairs made before the sales. Find out these facts! They are important to your case. If so, make the Assessor aware of the differences. The comparable sales should be adjusted downward to reflect the obsolescence and the physical condition of your home.
Thank the Assessor for discussing the assessment and inquire when you may receive notice of the review decision. Please note that in some counties, you may file online for a review by the Assessor.
Step Number 3. Appeal to County Board of Equalization
If the Assessor has notified you of the review and the results are not satisfactory, you have the right to appeal to the County Board of Equalization. In most counties in Tennessee, these appeals must be filed before the end of June. However, these dates do differ, so to be safe, watch for advertisements and inquire of the filing deadline. Do not miss the deadline.When you file the appeal, you should answer all questions thoroughly. Also, obtain a date stamped receipted copy of the appeal. Be sure to include enough information in the initial appeal so that the reviewers can get some idea of the problem and your basis for appeal. Find out about any rules of the Board. They have rules which change from year to year, so obtain a copy from the Board.
Your first hearing could possibly be before an appointed Hearing Officer acting alone (Homes with high values are usually heard only by the full Board members). Hearing Officers are local citizens, some with real estate backgrounds, who are appointed by the County Board of Equalization to hear appeals for the Board.
Be at the hearing on time and be prepared to present in a composed manner why you feel the Assessor’s value is excessive. The Assessor may or may not be there. Their presence is not required before Hearing Officers. To be well prepared, you must do some research. You already have the Assessor’s comparable sales and you should obtain some more sales which would help your case. You can purchase these sales, your Realtor may help you, or you can easily search them out on the Assessor’s website. The latest sale and the square feet of each home are contained in the Assessor’s site.
In some neighborhoods there are many foreclosure or bank sales available. Present these sales. These sales may represent the market in your neighborhood. For your sales comparisons, you should prepare a table containing the address, parcel number, age, construction type, square feet, special important features, and the sales price per sq. ft. If the Assessor’s value is less than the sale price per square feet, list a column with this number.
These comparable sales should be dated prior to January 1, 2009, because January 1 is the assessment date. The Assessor may object to introduction or consideration of any sale past this date. If you do locate some later dated sales which you feel are a more realistic representation of the market, try to present them. While generally not to be considered by the Boards, and they will probably tell you this, these sales could have an effect on their decision anyway. Just don’t overdo it or insist that they be considered. Do tell the Hearing Officer you are only doing this because these sales are more indicative of the true market. You could also hire an appraiser to prepare an appraisal of your home. This could be helpful at this level but always consider the costs and you can’t be sure that the appraiser’s report will even come close to your value estimate.
Since you are the taxpayer, it may be difficult to keep from displaying emotion. This is okay, however, do not get too excited or raise your voice or be argumentative. Tell the Hearing Officer why you feel the way you do and answer all questions in a straightforward honest manner. Do not tell the Hearing Officer that your taxes are too high or that you cannot afford to pay the tax increase. Taxes are always too high. Everybody knows this and that fact cannot be used as a basis for reduction in the value of your property. The Hearing Officer cannot consider these issues and it will not help you. So, please do not bring these items up for discussion.
If you have found inequities (your neighbors’ assessments are lower than yours) in your neighborhood, go ahead and present them, but they should be significant differences. The Hearing Officers have been instructed to not consider inequities in assessments. By this I mean, the State does not consider inequities as a basis for appeal of an assessment. For the County to ignore inequities and inconsistencies in assessments, in my opinion, is wrong. However, that’s the way it is for right now.
As I mentioned, if you have some really noticeable inequities you might go ahead and present them. It could influence the Hearing Officer to consider more closely some of your other arguments. Our firm has a proprietary method for introducing comparable assessments as evidence and oftentimes they are considered. However, please don’t make that your whole case and be careful not to get your neighbors’ assessments increased.
Thank the Hearing Officer and make sure he has your correct mailing address for notification. You do not want to miss this notice. Once you receive notice, you may accept the Hearing Officer’s recommendation or you may appeal further to the full County Board of Equalization. The appeal period is usually short (sometimes ten days or less), so don’t procrastinate if you wish to file an appeal. Also keep in mind that if you do receive a favorable recommendation, the Assessor may appeal and force a hearing before the full Board members.
Step Number 4. Appeal to Full County Board Members
In this step you will be appearing before the full Board membership. In Shelby County the Board may have as many as nine (9) members, but presently only has seven (7) members. In Davidson and Knox Counties, each Board has five (5) members.Have your comparable sales ready in a neat legible format for hand out (one for each member and one for the Assessor) and have numerous photographs of your home and the comparables, preferably large photographs.
Be very familiar with the comparables and the differences in your home, Also, be familiar with the Assessor’s comparables and be ready to explain why they should not be considered or adjusted for certain differences. If the Assessor uses additional comparable sales that he or she did not provide to you when you requested them, request the Board to rule in your favor because of this unfair tactic. The Board probably will not grant your request but may be influenced to consider more favorably your other arguments.
After you have presented your arguments and information, the Assessor will do the same. Make notes for questions during the Assessor’s presentation and then you will have another opportunity to explain what’s wrong with the Assessor’s presentation and reinforce your arguments. You might wish to hire an appraiser for this level of appeal if the costs justify the results and the appraisal is favorable. Just keep in mind appraisals are not always accepted by the Board because they are just opinions. It’s the same with the Assessor. Their value is just an opinion and many times they argue against the values contained in professional appraisal reports, and win. Therefore, ask the Assessor well before the hearing that if you had a professional appraisal made would the Assessor accept the appraisal.
Once again, if you are aware of some true inequities in assessments in your neighborhood, go ahead and point these out to the Board. The Board will probably tell you they cannot consider these inequities, but it could persuade them to consider your other arguments. Just don’t overdo it, because, in some cases this could cause some damage. If you point out too many inequities and low assessments and it appears to the Board that all your neighbors are under appraised, the Board may order the Assessor to increase all the neighbors. This will make you very unpopular.
This Board will not allow you very long for your presentation so don’t get distracted or argue with any Board member or the Assessor. Be polite, calm and professional. This Board will also usually let you know at the hearing of their decision. Do not take a negative decision personally because even though you may not think so at the time, they truly try to do a good job and are calling it the way they see it based upon what was presented.
Although the hearing is informally conducted, you must really be prepared for this level because you will be asked numerous questions by different Board members. These Board members have heard all the reasons why assessments should be reduced, so you can’t surprise them and you certainly can’t fool them. They will not be impressed by lack of preparation. It will help if you practice your presentation and anticipate questions. Be realistic as possible and eliminate parts that just complain of high taxes and assessments. Don’t take up much time in your presentation.
Step Number 5. Appeal to the State Board of Equalization
If you are still unhappy with the results so far, you may appeal to the State Board of Equalization. You will have forty-five (45) days from the date of the notice from the County Board of Equalization to file an appeal with the State Board of Equalization. Complete the appeal form as completely as possible. Answer all questions. You may file this appeal online on the State Board’s website. If you mail, do it Certified with Receipt. Just don’t be late. There is a fee for filing a State Board appeal and a hearing charge if one is conducted.
Study the State Board’s rules for contested cases. You can find these at Contested Case Procedures and more published by the Secretary of State at Uniform Rules of Procedures for Hearing Contested Cases Before State Administrative Agencies .
It is uncertain as to how long it will be before you will be notified for a hearing because this depends on the number of appeals filed with the State Board. Just let it take its course and wait. It doesn’t help your interest to push the State Board for a hearing. When you are notified, you will be given a date, time, and place to appear before an Administrative Judge or Hearing Officer who hears appeals for the State Board.
Do not let the title of Administrative Judge or Hearing Officer intimidate you. He or she is simply appointed by the State Board to hear the case. The hearings are held informally. In fact, an informal hearing is a legal requirement enacted by the Legislature at the request of our firm. Relax! You are not in court.
If you have picked up new information by all means present it at the hearing if it is helpful. You will also have an opportunity to settle with the Assessor at the hearing. This happens often if you have a reasonable case. Again, be calm and polite, but determined. Ask the Administrative Judge or Hearing Officer to rule in your favor if the Assessor uses comparable sales that he or she did not provide you when you requested them.
You may present inequities in your neighbors’ assessments, but that will receive very little consideration at this level. Try to impress that the value of your property is less than the Assessor’s estimate and why. If you have had an appraisal prepared, your appraiser should be present at this level to testify. Most costs of an appraisal and testimony outweigh the possible results, so calculate these factors carefully.
The administrative judge will notify you later of the decision. You will have thirty (30) days to appeal his or her decision from the date of the decision. Again, send it Certified Mail and don’t be late.
Step Number 6. Appeal to the Assessment Appeals Commission
If you are still not satisfied with the results, you may file a further appeal to the Assessment Appeals Commission, which also hears appeals for the State Board. This Commission consists of up to (6) members (although three members are all that are needed for a quorum).
While this Commission may appear more formal, it really is not. Again, the statute passed at our request and effort requires the hearings at this level to also be informal. You may introduce new evidence if you wish or you may stick with what you used before and point out what the administrative judge failed to consider or give enough weight. Be sure to have good backup for these arguments.
If you had an appraisal made, your appraiser should be present to testify.
The Commission will usually inform you of their decision after the hearing.
Step Number 7. Appeal to Full State Board Members or Lawsuit
You will have other steps after the Commission hearing, but few taxpayers take them. The first is to request a review by the full State Board of Equalization members. They rarely grant this request.
The other option is to go to Chancery Court. If you truly wish to go to court, hire a qualified appraiser because the court will usually not be persuaded by your own evidence. It is extremely rare that value cases go to court in Tennessee.
As I have mentioned earlier, there are so many administrative levels available to a taxpayer that if a taxpayer has lost at all the hearings along the way, there probably was no real case.
There you have it. While possibly a long and tedious process, it can be rewarding and some people may enjoy the experience. Good luck in your venture and don’t give up. If you need assistance, do not hesitate to obtain professional help.
Reprinted with permission of Caruthers & Associates, Inc. -
Copyright – Caruthers & Associates, Inc. – May 24, 2009
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The conflict may even be an unavoidable one when public funds are used to pay lobbyists for any governmental purpose. 