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Board of Appeal and Equalization Handbook Overview of the assessment process The assessment of property –determining the estimated market value and classification –technically occurs on January 2 (the assessment date) of each year. The work and analysis required to make these estimations involves several months before and after the assessment date, however. Most of the field inspections of real estate for the next assessment begin in the summer and continue through the fall. For example, assessors will inspect properties starting in the summer of 2012 for the January 2, 2013 assessment. These inspections are when the assessor identifies and records the specific characteristics of each property being reviewed. These characteristics include square footage, condition of the property and number ofbedrooms, for example. Assessors gather a lot of information to help them estimate each property’s value and determine its use for classification purposes. This field inspection work is completed as the assessment date nears. At about this same time, assessors start work on analyzing sales and other market data in a sales ratio study to help them estimate values. The sales included in this sales ratio study should represent a typical open market. The sales are from October 1 of two years prior to the assessment year to September 30 of the year prior to the assessment year. In other words, sales from October 1, 2011 to September 30, 2012 are included in the study for the 2013 assessment. The Department ofRevenue, through the State Board of Equalization, conducts a similar sales ratio study to monitor the work of the assessors. Based on the field inspections and sales ratio study, all taxpayers are notified of their value and classification for thatJanuary 2assessmentdateinthespringofeachyear. This notification initiates the appeals process that continuesuntilthemiddleof Juneatthelocallevel. Once the appeal process is complete, the assessorstarts workonthenextassessment,andtheentirecyclestarts again. The final value and classification for each property for each assessment year is used in determining that property’s taxes in the following year. For example, the value and classification for the 2013 assessment, once finalized, is used to determine the taxes paid in 2014. Assessor estimates value The assessor determines the approximate selling price (or EMV) for each taxable parcel based on the conditions of the market on January 2 of each year. The assessor is required by law to view each property at least once every five years. However, even if the assessor did not physically visit a property for that assessment year, the property is subject to valuation changes to reflect market conditions. The assessor is required to estimate the market value as of January 2 of each year to reflect current market conditions because the real estate market is constantly changing –sometimes dramatically. When the assessor views the interior of a property, he/she can make a more accurate assessment and eliminate any guesswork. The assessor bases his/her assessment on multiple factors, including size, age, condition, quality of construction and other features such as fireplaces. The assessor compares the property to actual sales of similar properties in the area to determine the EMV of a property. In addition to this approach to determining value, the assessor may also consider the cost to construct the property or the income generated from the property. These techniques are often referred to as the “three approaches to value.” 8