Laserfiche WebLink
Board of Appeal and Equalization Handbook <br />Frequently asked questions by board members <br />What is the purpose of the Board of Appeal and Equalization? <br />One characteristic of the valuation (and to a lesser extent the classification) part of the property tax process is that there are <br />subjective elements involved. Both mass appraisal and independent appraisal are inexact sciences. The property tax system <br />has a method for property owners to appeal the decisions made by the assessor. <br />Effective actions taken by the Board of Appeal and Equalization may potentially make a direct contribution to attaining <br />assessment equality. Any value reductions have the effect of shifting the property tax burden to other properties, so any <br />changes made by the board must bejustified. <br />On what basis should I make my decisions as a board member? <br />You have an obligation to objectively listen to the property owner’s appeal, which should focus on the market value and facts <br />that impact the market value or the facts that focus on the classification. It is assumed that the assessor has valued the <br />property correctly.The burden of proof rests with the property owner who must present factual evidence to disprove the <br />assessor’s value. For example, if the property owner states that his/her homeisovervaluedbecauseitislocatedonabusy <br />street, the property owner should present comparable sales also located on that street. The board would want to take that <br />information under advisement. Then the board should ask for information from the assessor concerning how the value of the <br />property was determined.Again, any decisions made by the board should be based on facts because any reductions have the <br />effect of shifting the property tax burden to other properties. It is important tokeep in mind that all decisions must meet <br />statutory guidelines aswell. <br />What options do property owners have if they are not satisfied with the board’sdecision? <br />For local boards the property owner can: <br />appeal by letter, representative or in person tothe County Board of Appeal and Equalization (a property owner must <br />appeal to the local board to be able to appeal to the countyboard); and/or <br />appeal to TaxCourt. <br />For county boards, the property owner can appeal to Tax Court. <br />What factors make up the valuation of property? <br />The critical question is whether the property is valued in excess of market value or a theoretical selling price as of <br />January 2 of each year. The components that make up the market value are developed from vacant land sales, <br />replacement cost schedules, abstraction from sales data, and other sources. Themass appraisal system includes both <br />quantitative and qualitative variables. <br />Quantitative variables are objective characteristics, such as square footage, number of bathrooms or fireplaces, and <br />other straightforward items. It is important that the property description is accurate to allow for a fair application of <br />the mass appraisal schedule to the property. <br />Qualitative variables are more subjective in nature. They include the grading (or estimating the construction <br />quality) of the property which always involves judgment. <br />Why do values change? <br />There are basically three reasons why values change. <br />43 <br /> <br />