• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Tax Appeal Appraising

Status
Not open for further replies.

Wastewaterman

Thread Starter
Freshman Member
Joined
Dec 2, 2007
Professional Status
Certified Residential Appraiser
State
Illinois
My office has been getting a few calls about tax appeal appraising as of late. I believe this is the start of some of our work as appraiser's in the near future with all of the declining residential values. Can anyone with experience doing these types of appraisals answer the following questions?
1) If the tax year being appealed is 2007 and are being assessed on January 1, 2008 then the comparables used in the report should be from when? From 2007 or 2006?
2) If they are from the year before, how do we as appraisers use comparable sales that are older then 1 year as primary comparables? Do I make the effective date of the appraisal January 1, 2008? Is this USPAP compliant?
3) The local township assessor told me that all of the comparables used in the report MUST be in the same township as subject and must be of the same utility. Is this the case? A 100-year-old home on 5 acres......Finding a recent sale of 1 of those in this market area can be difficult.
4) Is there any other important tax appeal issues that I need to be aware of? Should it go on a GPAR?
5) Do tax appeal appraisals require a higher fee compared to a regular residential market value appraisal?
Thank you all for any help you can offer.:)
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
http://www.ipaionline.com/IPAI/coursedesc.htm

#002-127/S
CASE STUDIES IN THE APPEAL PROCESS
This course reviews not only the legal framework governing the Illinois property tax system, but also identifies the fundamental requirements and principles assessment officials need in order to properly implement a fair assessment system. Areas of study include the sources of law which administer the property tax, an overview of the property tax system concentrating on the avenues of appeal available to taxpayers, and the burdens of proof required to prevail at various levels of appeal. Case studies provide the primary educational vehicle by which the course is presented.

#002-253/E
INTRODUCTION TO MASS APPRAISAL TECHNIQUES
This course will focus on mass appraisal techniques such as sales ratio studies and will include an explanation of multipliers. Exemptions granted to Illinois property owners will be discussed, as well as other special assessment issues.

#002-427/E
EVALUATING REAL ESTATE APPRAISALS
The purpose of this course is to acquaint the student with the knowledge and tools required to make an accurate review of an appraisal. The Preamble and Uniform Standards of Professional Appraisal Practice are utilized as a guide to test proper appraisal methodology and reporting procedures. Various aspects of the three approaches to value are covered so that the student has a grasp of some of the less often utilized materials. The second day will deal primarily with case studies where the student can review reports in class with the instructor’s supervision.
Special Note: Students may receive continuing education credit for either the exam course (#002-427/E) or the seminar course (#002-430/S), but not both.

#002-505/S
REAL ESTATE LAW
This course is designed to familiarize assessing officials with the points of law regarding real property and real estate. An understanding of the basic legal principles involved with respect to real property is essential to the administration of the real property tax. This course presents a summary of those basic legal principles through lecture, discussion problems, and quizzes.

#002-602/S
APPEAL PRACTICE AND PROCEDURES
Students will review the timing and jurisdictional issues related to the appellate process. Students will become familiar with the three common appeal types and develop an analysis framework for the two most common, uniformity and valuation; which is examined in detail and various analysis tools will be developed. The order of a Property Tax Appeal Board hearing will be discussed, as well as, burdens of proof, standards of review and a discussion of evidence. How to introduce and examine a witness/expert at hearing and understanding the difference between testimony as a witness and as an expert witness will be addressed. The course will conclude with a mock hearing.


http://www.appraisalinstitute.org/education/course_descrb/Default.aspx?prgrm_nbr=705GRE&key_type=C
 
Last edited:

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
My office has been getting a few calls about tax appeal appraising as of late. I believe this is the start of some of our work as appraiser's in the near future with all of the declining residential values. Can anyone with experience doing these types of appraisals answer the following questions?
1) If the tax year being appealed is 2007 and are being assessed on January 1, 2008 then the comparables used in the report should be from when? From 2007 or 2006?
2) If they are from the year before, how do we as appraisers use comparable sales that are older then 1 year as primary comparables? Do I make the effective date of the appraisal January 1, 2008? Is this USPAP compliant?
3) The local township assessor told me that all of the comparables used in the report MUST be in the same township as subject and must be of the same utility. Is this the case? A 100-year-old home on 5 acres......Finding a recent sale of 1 of those in this market area can be difficult.
4) Is there any other important tax appeal issues that I need to be aware of? Should it go on a GPAR?
5) Do tax appeal appraisals require a higher fee compared to a regular residential market value appraisal?
Thank you all for any help you can offer.:)

Q 1: The assessing jurisdiction can answer this question. As a rule, if the dispute is with the assessor's value, then the same basis (time frame) should be used.
Q 2: You should investigate USPAP regarding retrospective appraisal assignments.
Q 3: This may be a case of the elusive Jurisdictional Exception rule (kinda like Big Foot: much talked about, seldom seen). If that is the requirement, however, then I suspect you have a lot of analytical work ahead of you.
Q 4: You are asking a form question. No shame in that, but I'd recommend that you consider USPAP as the driving force in your development and reporting process rather than a form. Having said that, I would not use the standard Freddie/Fannie forms under any circumstances. The GPAR could work.
Q 5: In these types of assignments, my fees are based upon the complexity of the assignment as well as the expertise I consider I bring to the table. So, for me, yes, my fees are higher for this type of work than for a typical refinance.

As it turns out, I have an appointment set to argue a tax dispute for a client of mine. I am not surprised the county is pushing this issue- local governments need cash. It will be interesting to see how my situation pans out (mine is different from yours; the question in my case is the incremental value that a permitted in-law adds to a property that was sold; my client's (an attorney) client (the seller) is trying to transfer his tax basis to another jurisdiction and the dispute is over the market value of the in-law unit).

Mike K. posted some good reference classes to take. My advice is to partner with an appraiser who has experience in these kinds of assignments and to educate yourself at the same time. These are good assignments that need expert consultation. I'll presume it is a given that you will credibly value the subject; what you need to know are the nuances (as Dave W. has said before) that can affect these assignments.

Good luck!

(edit to add: for my assignment, I did not use a form report)
 
Last edited:

Walter Kirk

Senior Member
Joined
Jun 24, 2003
Professional Status
Licensed Appraiser
State
New Jersey
Each state has it's own procedures and requirements which you should learn. I think that tax appeals may make up a significant portion of next year's work since assessments are based on recent record high sales prices that are now coming down.
 

The Warrior Monk

Moderator
Staff member
Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
3) The local township assessor told me that all of the comparables used in the report MUST be in the same township as subject and must be of the same utility. Is this the case? A 100-year-old home on 5 acres......Finding a recent sale of 1 of those in this market area can be difficult.

I would ask to see this requirement in writing.

The problem with this is that the appraiser is required to produce a credible appraisal, and this requirement can interfere with that by excluding sales that may be the best value indicators.
 

MCC6

Sophomore Member
Joined
Jan 14, 2005
Professional Status
Certified Residential Appraiser
State
Pennsylvania
In my experience with tax appeal appraisals, the appeal is actually addressing the tax liability/assessment, going forward. That is to say, the 2007 assessment is over and done with, those taxes are paid. The appeal is addressing the assessment for the upcoming tax period. For instance, in PA people are currently appealing their assessments for 2009.

That being the case, the assessment boards are (at least here in PA) looking for a current fair market value of the property. If the appeal is successful, they will set the future assessment of the property at the new appraised value.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks