What Is A Tax Appeal Appraisal?

A tax appeal appraisal, also known as a property tax appeal appraisal, is a type of real estate appraisal that is conducted by property owners or their representatives to challenge the assessed value of their property for tax purposes. The goal of a tax appeal appraisal is to provide evidence to the local tax assessor or an appeals board that the property’s assessed value is inaccurate and should be adjusted, potentially resulting in lower property tax liabilities. Here are the key aspects of a tax appeal appraisal:

  1. Assessed Value Challenge: Property tax assessments are typically conducted by local government authorities to determine the value of a property for tax purposes. These assessments can be based on a variety of factors and may not always accurately reflect the true market value of the property. Property owners can appeal the assessed value if they believe it is too high.
  2. Independent Appraisal: To support their appeal, property owners hire an independent and qualified appraiser to conduct a tax appeal appraisal. This appraiser assesses the property’s market value using recognized appraisal methods, such as the comparison approach (comparing the property to similar recent sales) or the income approach (for income-producing properties).
  3. Evidence in Appeal: The tax appeal appraisal report provides evidence to challenge the assessed value. It includes the appraiser’s opinion of the property’s current market value, which is typically compared to the assessed value. If the appraiser determines that the assessed value is significantly higher than the market value, it can be a persuasive argument in the appeal.
  4. Appeal Process: The property owner or their representative submits the tax appeal appraisal report as part of the appeal process. The appeal process can vary by jurisdiction but typically involves filing paperwork and presenting evidence before a tax assessment appeals board or similar authority.
  5. Potential Outcomes: If the tax assessment appeals board or authority agrees with the property owner’s appraisal and finds that the assessed value is too high, they may adjust the assessed value, which can result in a lower property tax bill. Conversely, if the appeal is not successful, the assessed value remains unchanged, and the property owner’s tax liability remains the same.
  6. Costs and Benefits: Property owners should consider the costs of obtaining a tax appeal appraisal, which typically includes the appraiser’s fee, against the potential benefits of reducing their property tax burden. In some cases, the savings in property taxes over time may outweigh the appraisal cost.

It’s important to note that the process and requirements for filing a property tax appeal, as well as the specific deadlines for doing so, can vary widely by jurisdiction. Property owners interested in pursuing a tax appeal should consult with local tax authorities or legal professionals familiar with property tax laws and procedures in their area to understand the specific requirements and deadlines for their appeal.