With property values plummeting, this is a good time to do something few people realize they have the power to do: appeal your property tax assessment to lower your tax payment.
Let's make a deal
The assessor's office has the power to change the property tax value and lower your tax bill, but little incentive to do so. This puts you, the home or business owner at a disadvantage. It will take careful research to make your case, but it could result in significant tax savings. If you don't feel confident about approaching the subject, hire a property tax consulting to help you put it together.
Think of this venture as a business proposal presentation. Your goal is to sell the property tax assessor the idea that certain influences mitigate the value of your property…influences that he may have no knowledge of. Your appeal must be honest and forthright. It must also be filed within the time limit set by the office and on proper forms. Since the assessor's office can be very busy, it's better to hand deliver all paperwork and get a receipt.
Gathering the evidence
The first piece of the puzzle is surrounding property values. Find out what value comparable properties in your area have been assessed. If even one has a lower value, it's strong evidence.
Next, get a copy of the assessor's report and look it over carefully. The assessor is not privy to considerations like special lease deals, concessions, rent abatements or operating cost factors that may be used to argue your case. Other factors to present may include economic consequences such as lower lease rates for rental spaces. Your goal is to educate him on these potential mitigating factors without attacking his professional assessment.
Plan B
If your appeal fails, the next step is to ask the Board of Equalization for a hearing to present the same evidence along with documentation of meetings with the tax assessor, including dates and outcome. If that fails, it's time to decide whether to drop it or hire an attorney and take the case to court.
Some points to note
Regardless of outcome, you will see this tax assessor every year, potentially for years to come. It is in your best interest to be respectful and businesslike and to refrain from making attacks on his judgment or ability. In the case of an office building, the resulting lowered tax could mean a tax break measure in 6 figures, but in the case of a farm, you may be looking at an amount too small to put in the time and effort. Know what the potential outcomes are before you begin.