by Dan Krell © 2010
Since the decline of the housing market, many home owners have appealed their property tax assessments. The appeals process is straightforward and is laid out on the Assessments and Taxation website: www.dat.state.md.us/sdatweb/appeal.html.
The appeal process can be broken down in several discrete steps. The important thing to keep in mind is the filing deadlines; however, if you miss one deadline you can file during the subsequent cycle.
There are three times you can file an appeal; upon re-assessment; upon purchase; and you can petition for a review. Since homes are assessed every three years, you can file an appeal within 45 days of receiving the assessment notice. If you’re a new home owner, you have 60 days from the day you take title to file your appeal, but only if you settle between January 1st and July 1st. If you miss these deadlines or you feel that conditions have changed such that your home value has decreased between assessments, you can file a petition for a review before January 1st.
To be most effective authorities recommend that you: stay focused on what affects your property value; provide reasoning why the “Total New Market Value” is not accurate; point out errors on the assessment worksheet and/or in the description of the home; support your appeal with recent sales comparables.
The first step of the appeals process is called the “Supervisor Level.” This is where you will meet with a local level official to present your case. It is recommended that you obtain local sales information to support your case, which can be obtained from various sources such as (but not limited to) a library, public records, or a local real estate agent. For a nominal fee, the assessment office offers worksheets listing comparable properties. At this level, you basically present your evidence as to why the department’s assessment is inaccurate.
If you’re unsatisfied with the initial decision, step two is to file an appeal to the Property Tax Appeal Board. The appeal to the PTAB must be filed within 30 days of the final notice from the Supervisor of Assessments.
If the PTAB decision does not satisfy you, step three is taking your appeal to the Maryland Tax Court. If you’re not content with the MTC’s decision, you can file further appeals; however further appeals must be in the judiciary system (and it is recommended you hire an attorney).
Even though the property tax appeals process is straight forward, there are companies that will assist you in your tax assessment appeal for an upfront fee. Although the tax assessment appeals industry has been around for many years, it has mostly been focused on more complicated and business related tax issues. Some of the tax appeal business newcomers have organized in the last couple years and target homeowners; some operate through recruited “affiliates” who make referrals for a fee. Furthermore, some of these businesses lack appropriate licenses and offer nothing more than information that is already publicly available.
Many homeowners successfully undertake the appeals process on their own; however if you choose to employ someone to assist you, ask questions about their business as well as check if they’re licensed and reputable. Licensing can be verified through the Maryland Department of Labor, Licensing and Regulation; other concerns can be cleared through the Office of Consumer Protection.
This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of July 26, 2010. Using this article without permission is a violation of copyright laws. Copyright © 2010 Dan Krell.