Author Box
Articles Categories
All Categories
Articles Resources

How to Appeal Your Property Tax Part 3: Equity

February 26, 2011 | Comments: 0 | Views: 62

At the end of the last article I called equity "the other approach to value." Ideally it should be called the other approach to assessment, because it isn't an approach to market value estimates at all. Equity is all about fairness. Specifically that your property tax burden is fair when compared to your neighbor, or your competition. Most states that I have worked in require that tax jurisdictions must assess based on equity, or "uniformity." This is to ensure that the tax burden is distributed fairly. The exceptions are Florida and Ohio. Floridians and Ohioans can skip to article 4. (Full disclosure: I have worked property tax appeals in ME, VT, NH, MA, CT, RI, NY, PA, NJ, DE, MD, VA, WV, OH, NC, SC, GA, AL, FL)

I touched on the equity argument throughout article 2, The Three Approaches. When I talked about having the same quality codes in the computer assisted mass appraisal (CAMA) cost approach, or the same depreciation schedule, that's equity. When everyone's cost approach value is adjusted up or down based on the same sales from the same market area, that's equity. When all neighborhood shopping centers in the same market area have the same market rent estimates, the same expense ratios, and the same capitalization rate, that's equity.

Often, after many years of different county appraisers, reappraisals, and appeals in your neighborhood, equity gets forgotten or overlooked. Although it is a time-consuming argument to develop, often requiring the purchase of many assessor property record cards, the results can be good. It pays to make certain that your property tax burden is equitable, because it is often not.

You might start with the assessor's online property records. Look through the assessed values of properties in your neighborhood. Find a handful or ten or twenty properties that have lower assessments than your property does. Dig in, either online or at the assessor's office. Why are these properties valued lower than yours? Are they smaller, with fewer amenities? Or has your property been given a higher quality rating for no apparent reason? Is your property newer? Or has your property been given a higher condition rating than the competition for no apparent reason?

This is just a few of examples of assessor data points that could be inequitable. If you can get the assessor property record cards and they show say, a cost approach, you can go through your property and the comparable properties line by line to see what the differences are.

That's equity in a nutshell. It can be time-consuming to develop an equity argument and in many states equity alone does not get results. You must have some sales, or a cost approach, or an income approach that supports a lower value and then you can present an equity argument in support of the lower value (whichever approach to value you take).

In the next article I will touch on external/economic obsolescence. Let's keep saving money!

Learn more about Georgia property tax appeals. Stop by Dan Jones' site where you'll find a free guide to appealing your tax assessment.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:



Property Tax Appeal


Assessment Appeal


Real Estate Assessment

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 563

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 304

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 289

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 301

Tax liens are like government restrictions on certain properties. These so called restrictions are usually imposed on specific lands and properties that are usually delinquent in the loan or mortgage

By: Andrea Averyl Finance > Taxes Propertyl June 21, 2012 lViews: 144

When you can no longer maintain your monthly mortgage payments and real estate taxes, you risk losing your real estate to the government through foreclosure. Once your real estate taxes have entered

By: Antoinette Ayanal Finance > Taxes Propertyl June 20, 2012 lViews: 162

Homebuyers need resources in today's marketplace if they hope to find the best deals on properties. Articles like the one you're reading now, are all about pointing you in the right direction and

By: Kevin P McGeel Finance > Taxes Propertyl June 10, 2012 lViews: 151

What should you consider in relation to the property taxes you will have to pay when investing in investment property? This article discusses what taxes you pay and how different structures can

By: Julian Thorntonl Finance > Taxes Propertyl June 01, 2012 lViews: 176

There are a number of property tax reduction programs available to property owners. Although many of the tax reduction programs are similar, each has it's own set of rules for the tax appeal process.

By: Gerald Fishl Finance > Taxes Propertyl May 14, 2012 lViews: 139

Fair to say, if you are living anywhere in the country, you are probably paying more property taxes than you should. The National Taxpayers Union, in fact, estimates that approximately 60% of all US

By: Peter A Jordanl Finance > Taxes Propertyl April 16, 2012 lViews: 133

Discuss this Article

comments powered by Disqus