Here is a quick overview of the assessment appeal process, along with my comments in italics:

Local Preliminary Values posted on-line: About January 15

Informal Appeals to County: An informal process in late January into February for informal voluntary discussions with Assessor’s office. This step is often represented as a mandatory step in the appeal process but is actually an informal voluntary step in the appeal process.

This process has allowed some revisions of value prior to final values being submitted in late March to the State for review. Some success related to reductions by class seem to have been considered. However, we have seen limited success at this level for individual property values. This informal meeting seems to be more related to the education of taxpayers on the local assessment process and fact gathering by the County. The informal appeals are voluntary and not a part of the formal appeal process. Most of our clients do not participate at this level of the appeal process. There is no need for an expert appraisal opinion at this point in the appeal process.

Local Final Values Issued- June 1 (Protest Period ending June 30) – The filing of local protest is the first required step to the appeal process, so timely filing of the appeal is essential.

Formal Appeal (Protest) – Local Board of Equalization – (Typically late June through late July.) This is a hearing with a Referee who is a contractor with the local Board of Equalization who then makes a recommendation to the Board of Equalization.

In the last few years, this process has seen a significant drop in the review process. Several changes have made it more difficult to have meaningful discussions based on the need to submit all information at the hearing, as well as a reduced level of independent value review by the Referees. These changes have further diminished the likelihood of resolution at this level of appeal. Most of our clients maintain an active protest, but do not participate at this level of the appeal process. There is no need for an expert appraisal opinion at this point in the appeal process. Note: All data submitted during this hearing is considered to be public information which may be available by request from the County Clerk’s Office.

Final Board of Equalization (BOE) Decision – Early August Appeal period for Tax Equalization and Review

Commission (TERC) – 30 days from final local BOE decision. The filing of the appeal to TERC is the second required step to the appeal process, so timely filing of the TERC appeal is essential.

TERC Case Progression- This where the appeal takes a more legally formal format, and the process slows down significantly. We are seeing cases take 6 to 36 months to progress from filing to actual hearing in front of TERC.

My experience is that appeals that progress to a formal TERC hearing are both expensive and unpredictable. With many of our clients, this is the point in the process where the case can best be resolved. In fact, most cases are resolved prior to the actual TERC Hearing.

This is the point in the appeal process that I think qualified appraisal services are best utilized. With other tax appeal clients, I have utilized a multi-step process for best utilizing our appraisal services at this point in the appeal process. Each client approaches thisstage of the appeal process slightly different, as some steps can be combined or omitted as needed. A summary of the potential steps is as follows:

1. Oral Consultation (Desk Review) – At this level appraisal services, we gather all the public information, property rent roll, and income/expense data. We complete a desk review to assist the client in the decision process. This review can be completed at any point in the overall appeal process but is likely most relevant after a TERC appeal is filed. The oral consultation cost typically ranges from $900 to $3,000+ per property depending on the complexity of the property and analysis needed.
2. Restricted Appraisal Reports- At this level of appraisal services, we progress to a written document as an initial step or based on the previous desk review. This level of appraisal services traditionally includes an on-site interior/exterior inspection. A Restricted Appraisal Report provides a summary of the appraisal analysis and data with a value conclusion but does not contain the detail of a traditional full appraisal report. The use of a Restricted Appraisal Report is limited to negotiations for settlement purposes with the County. At this point in the process, the negotiations have historically been with the County Attorney’s Office. The restricted appraisal reports are typically priced at 60-75% of a full appraisal report.
3. Full Appraisal Report – At this level of appraisal services, we can start here, or we convert the oral consultation and/or restricted appraisal report to a full appraisal report. In all cases the full appraisal report is intended as the basis of testimony at TERC. This report is more self-contained and is more comparable to the full appraisal reports used in litigation and mortgage lending. The full appraisal reports costs range from $5,000 to $11,000+ depending on the complexity of the property and analysis needed.