Appeals of Property Tax Values May Be Filed for Tax Year 2017
By Evan Bolick | Rose Law Group attorney
The Tax Year 2017 notices of value have been mailed out by almost all of Arizona’s county assessor offices. All property owners have sixty days from the date such notices were mailed to file an administrative appeal of the valuation of the property. The clock for an administrative appeal is ticking.
Keep in mind that absent a change in classification, recent sale, or major change to the property itself, tax value increases are limited to 5% above the prior years’ valuation. Thus, if you have a basis for lowering your property valuation, you may be able to reap the benefits for a longer period of time.
Typically, there are three grounds for challenging the valuation of your property:
1) Market Approach – If the recent non-distressed market purchase price of your property (or taxes surrounding properties) and/or recent appraisal value varies drastically from the valuation in your notice, then an appeal could be warranted.
2) Income Approach – If your property produces income, and the valuation of the property does not reflect the true amount of revenue or income generated by the property, then you may have grounds for appeal.
3) Reconstruction Approach – If it would cost less to rebuild a significantly similar structure on your property than the valuation of the property as stated in your notice, an appeal may be merited.
Your case will be even stronger if two or more of these factors exist.
Also, it is always worthwhile to make sure that the assessor’s office has properly classified your property (i.e., vacant, residential, agricultural, mixed use). An improper classification could possibly raise your tax bill.
If you believe your property has been overvalued for tax year 2017 (values can be found on your notice and the County Assessor’s website), please contact Evan Bolick to discuss a complimentary assessment at ebolick@roselawgroup.com.
