Three key considerations for reaching an appropriate property tax assessment
Valuations depend on the particular jurisdiction and whether the property will be valued on a local basis or on a central/state level. Jurisdictions may be open to changing valuations despite—and because of—uncertainty about how to assess property values in light of rapid market swings. What should you keep in mind as you work with property tax assessors to arrive at property valuations and tax assessments?
Expand all
') $(accordionID + '-controls .daccord-expandcollapse li').eq(1).hide(); $(accordionID + '-controls .daccord-expandcollapse li').on('click',function () { if ( $(this).index() == 0) { //expand $(accordionID + '-controls .daccord-expandcollapse li').eq(0).hide(); $(accordionID + '-controls .daccord-expandcollapse li').eq(1).show(); $(accordionID + ' .daccord-collapse').slideDown(daccordSpeed); $(accordionID +' .daccord-header').addClass('daccord-header-icon'); } if ( $(this).index() == 1) { //collapse $(accordionID + '-controls .daccord-expandcollapse li').eq(1).hide(); $(accordionID + '-controls .daccord-expandcollapse li').eq(0).show(); $(accordionID + ' .daccord-collapse').slideUp(daccordSpeed); $(accordionID +' .daccord-header').removeClass('daccord-header-icon'); } }); } //if a valid var from url exists override open item setting. var daccordUrlVar = $.getUrlVar('property-tax-acc1'); if ($.fn.daccordIsInt(daccordUrlVar)) { var urlInt = parseInt(daccordUrlVar); daccordUrlVar = urlInt; properties.openItem = daccordUrlVar; } //Build item object from AEM Vars var daccordItems = []; //Item 1 daccordItems[0] = { itemTitle: "The importance of being proactive in working with property tax assessors", itemText: "
With property tax valuations being subject to interpretation, the first assessment should be reviewed to determine whether it needs to be adjusted. Being proactive in seeking reassessment of real property is essential. In the current environment, there may be uncertainties because of dramatic fluctuations during and after the pandemic. It is important to act early.
Even in a more settled business environment, waiting for the assessor to make the first move may not be the best strategy. The ever-accelerating speed of business may lead to more businesses seeking redress, and there may be more appeals activity than usual. On the one hand, tax assessors may be more willing to revise an assessment following an appeal, because there will likely be many taxpayers experiencing the same challenges and seeking valuation changes. But on the other hand, more requests may mean assessors will have more on their plates and less time for each appeal. This is why it is essential to come prepared with your proposed revaluations and the reasons for them.
Regarding your communications with assessors, one potential pitfall is overcommunicating. Consider assigning one or two points of contact from your organization to avoid the risk of creating confusion from too many people sending too much information or mixed messages.
", itemImage: "${item-1-image}", itemImageRight: "${item-1-image-right}", itemMoreText: "${item-1-read-more-text}", itemMoreURL: "${item-1-read-more-url}", itemVideoURL: "${item-1-video-url}", itemInfographicUrl: "${item-1-infographic-url}" }; //Item 2 daccordItems[1] = { itemOpen: "${item-2-open}", itemTitle: "How a diligent approach can impact the outcome", itemText: "
Your organization likely has the most up-to-date metrics about your operations and can draw on this valuable data to build a case. Providing meticulous, detailed, and comprehensive data can instill confidence in the validity of your metrics and propriety of your proposals.
Walking assessors through the details
In building your case, it is important to avoid one common pitfall: providing complex information to assessors without explaining or clarifying it. Tax professionals often assume that assessors—who work in a division specific to their industry—are familiar with all the intermediate steps of their industry-specific argument and do not need to be taken on the journey.
That assumption may not be accurate. At the very least, many assessors are incredibly busy. As a point of courtesy, one should walk assessors through the steps of the argument and underscore important details which can make it easier for an assessor to make proactive adjustments.
", itemImage: "${item-2-image}", itemImageRight: "${item-2-image-right}", itemMoreText: "${item-2-read-more-text}", itemMoreURL: "${item-2-read-more-url}", itemVideoURL: "${item-2-video-url}", itemInfographicUrl: "${item-2-infographic-url}" } //Item 3 daccordItems[2] = { itemOpen: "${item-3-open}", itemTitle: "Anticipating discrepancies resulting from applying an incorrect method", itemText: "
While differences in data can lead to valuation inaccuracies, so can differences in methods used by assessors. Anticipating and identifying the most common discrepancies can have a substantial impact on the final results.
For example, assessors often focus on contract rent when in the current economic environment capitalization rates often lead to a more accurate reflection of current market events. Although capitalization rates are a measure of risk, the challenge is identifying and applying the right capitalization rate that appropriately reflects risk to capitalize the income stream into a value that can be assigned to that property.
", itemImage: "${item-3-image}", itemImageRight: "${item-3-image-right}", itemMoreText: "${item-3-read-more-text}", itemMoreURL: "${item-3-read-more-url}", itemVideoURL: "${item-3-video-url}", itemInfographicUrl: "${item-3-infographic-url}" }; //Item 4 daccordItems[3] = { itemOpen: "${item-4-open}", itemTitle: "${item-4-title}", itemText: "${item-4-text}", itemImage: "${item-4-image}", itemImageRight: "${item-4-image-right}", itemMoreText: "${item-4-read-more-text}", itemMoreURL: "${item-4-read-more-url}", itemVideoURL: "${item-4-video-url}", itemInfographicUrl: "${item-4-infographic-url}" }; //Item 5 daccordItems[4] = { itemOpen: "${item-5-open}", itemTitle: "${item-5-title}", itemText: "${item-5-text}", itemImage: "${item-5-image}", itemImageRight: "${item-5-image-right}", itemMoreText: "${item-5-read-more-text}", itemMoreURL: "${item-5-read-more-url}", itemVideoURL: "${item-5-video-url}", itemInfographicUrl: "${item-5-infographic-url}" }; //Item 6 daccordItems[5] = { itemOpen: "${item-6-open}", itemTitle: "${item-6-title}", itemText: "${item-6-text}", itemImage: "${item-6-image}", itemImageRight: "${item-6-image-right}", itemMoreText: "${item-6-read-more-text}", itemMoreURL: "${item-6-read-more-url}", itemVideoURL: "${item-6-video-url}", itemInfographicUrl: "${item-6-infographic-url}" }; //Item 7 daccordItems[6] = { itemOpen: "${item-7-open}", itemTitle: "${item-7-title}", itemText: "${item-7-text}", itemImage: "${item-7-image}", itemImageRight: "${item-7-image-right}", itemMoreText: "${item-7-read-more-text}", itemMoreURL: "${item-7-read-more-url}", itemVideoURL: "${item-7-video-url}", itemInfographicUrl: "${item-7-infographic-url}" }; //Item 8 daccordItems[7] = { itemOpen: "${item-8-open}", itemTitle: "${item-8-title}", itemText: "${item-8-text}", itemImage: "${item-8-image}", itemImageRight: "${item-8-image-right}", itemMoreText: "${item-8-read-more-text}", itemMoreURL: "${item-8-read-more-url}", itemVideoURL: "${item-8-video-url}", itemInfographicUrl: "${item-8-infographic-url}" }; //Item 9 daccordItems[8] = { itemOpen: "${item-9-open}", itemTitle: "${item-9-title}", itemText: "${item-9-text}", itemImage: "${item-9-image}", itemImageRight: "${item-9-image-right}", itemMoreText: "${item-9-read-more-text}", itemMoreURL: "${item-9-read-more-url}", itemVideoURL: "${item-9-video-url}", itemInfographicUrl: "${item-9-infographic-url}" }; //Item 10 daccordItems[9] = { itemOpen: "${item-10-open}", itemTitle: "${item-10-title}", itemText: "${item-10-text}", itemImage: "${item-10-image}", itemImageRight: "${item-10-image-right}", itemMoreText: "${item-10-read-more-text}", itemMoreURL: "${item-10-read-more-url}", itemVideoURL: "${item-10-video-url}", itemInfographicUrl: "${item-10-infographic-url}" }; daccordItems = $.fn.daccordScrubData(daccordItems,properties); //render html within fragID for (i = 0; i < properties.numberOfItems; i++) { //add html var html = dcomAccordionItemTemplate(daccordItems[i]); $(accordionID).append(html); //add youtube vids if present if (daccordItems[i].itemVideoURL) { //check if one trust group 4 is enabled || if one trust isnt active display anyway if ((typeof OnetrustActiveGroups === 'undefined') || (OnetrustActiveGroups.indexOf(",4,") >= 0)) { $(accordionID + ' #' + properties.fragId + 'collapse' + daccordItems[i].itemNum + 'vid').player({ video: daccordItems[i].itemVideoURL, playerVars: { controls: 2, modestbranding: 0, rel: 0, color: 'white', showinfo: 0, theme: 'dark', autoplay: 0 }, events: { end: daccordVidEnd, play: daccordVidStart, pause: daccordVidStop } }); //show container ({{fragId}}collapse{{itemNum}}vid-cont) $(accordionID + ' #' + properties.fragId + 'collapse' + daccordItems[i].itemNum + 'vid-cont').show(); //hide fallback ({{fragId}}collapse{{itemNum}}vid-fallback) $(accordionID + ' #' + properties.fragId + 'collapse' + daccordItems[i].itemNum + 'vid-fallback').hide(); } } } //set open states if (properties.openItem > -1) { daccordSelected = (properties.openItem - 1); //set item index (minus 1) $(accordionID +' .daccord-collapse').eq(daccordSelected).slideToggle( daccordSpeed ); if (!properties.expandCollapseAll) { $(accordionID +' .daccord-header').eq(daccordSelected).toggleClass('daccord-header-open'); } else { $(accordionID +' .daccord-header').eq(daccordSelected).toggleClass('daccord-header-icon'); } } //set css options within fragID var css = accordionID + ' .daccord-header a {background-color: ' + properties.titlebarBackgroundColor + ' }'; css += accordionID + ' .daccord-header a {color: ' + properties.titlebarFontColor + ' }'; css += accordionID + ' .daccord-header-icon a { background-color: ' + properties.titlebarActiveBackgroundColor + ' }'; css += accordionID + ' .daccord-header-open a { background-color: ' + properties.titlebarActiveBackgroundColor + ' }'; css += accordionID + ' .daccord-header .daccord-header-bar-icon:after { color: ' + properties.titlebarBackgroundColor + ' }'; css += accordionID + ' .daccord-header-icon .daccord-header-bar-icon:after { color: ' + properties.titlebarActiveBackgroundColor + ' }'; css += accordionID + ' .daccord-header-open .daccord-header-bar-icon:after { color: ' + properties.titlebarActiveBackgroundColor + ' }'; $('head').append('
'); //set click events //accordions $(accordionID + ' .daccord-header').on('click',function() { var index = $(this).parent().prevAll().length; //stop (pause) all vids var daccordVidPlayers = $(accordionID + ' iframe.daccord-video'); $.each(daccordVidPlayers, function () { var daccordStopVid = YT.get($(this).attr('id')); daccordStopVid.pauseVideo(); }); if (!properties.expandCollapseAll) { //close open if (daccordSelected > -1) { $(accordionID + ' .daccord-collapse').eq(daccordSelected).slideUp(daccordSpeed); $(accordionID +' .daccord-header').eq(daccordSelected).removeClass('daccord-header-open'); $(accordionID +' .daccord-header').eq(daccordSelected).removeClass('daccord-header-icon'); } if (daccordSelected != index ) { //open selection - add selected state; daccordSelected = index; $(accordionID +' .daccord-collapse').eq(daccordSelected).slideDown(daccordSpeed); $(accordionID +' .daccord-header').eq(daccordSelected).addClass('daccord-header-open'); $(accordionID +' .daccord-header').eq(daccordSelected).addClass('daccord-header-icon'); } else { daccordSelected = -1; } } else { //set selected if collapse all daccordSelected = index; $(accordionID +' .daccord-collapse').eq(index).slideToggle( daccordSpeed ); $(accordionID +' .daccord-header').eq(index).toggleClass('daccord-header-icon'); //check number of items open/closed and set ui //daccord-header-icon var daccordOpenItems = $(accordionID +' .daccord-header-icon').length; //expand if 0 if (daccordOpenItems == 0) { $(accordionID + '-controls .daccord-expandcollapse li').eq(0).show(); $(accordionID + '-controls .daccord-expandcollapse li').eq(1).hide(); } //collapse if all opens if (daccordOpenItems == properties.numberOfItems) { $(accordionID + '-controls .daccord-expandcollapse li').eq(1).show(); $(accordionID + '-controls .daccord-expandcollapse li').eq(0).hide(); } } }); //CTA analytics var elementClicked = false; $('#daccord-' + 'property-tax-acc1' + " a.daccord-header-bar").click(function(e) { try { var FragType = "FRG-048"; var FragID = "property-tax-acc1"; var ActionType = "click"; var ctaText = e.currentTarget.textContent.replace(/\s+/g, '-'); s.linkTrackVars = "prop1,prop2,prop3,prop4,prop5,eVar72"; s.eVar72 = PubID+FragType+":"+ActionType+":"+ctaText+":"+FragID; s.eVar72 = s.eVar72.toLowerCase(); s.prop1 = sc_country; s.prop2 = sc_language; s.prop3 = sc_country + ";" + sc_language; if(elementClicked != true) { s.linkTrackEvents = "event71,event72,event23"; s.events = "event71,event72,event23"; elementClicked = true; } else { s.linkTrackEvents = "event71,event23"; s.events = "event71,event23"; } s.tl(this, "o", s.eVar72); } catch(error) { console.error(error); console.log('analytics suite unavailable?'); } }); // hide html frag title/description var hideFragTitleDesc = "${hide-title-description}"; if (hideFragTitleDesc == "title") { $(accordionID).closest(".htmlfragment").find("h3.secondary-headline").remove(); } else if (hideFragTitleDesc == "description") { $(accordionID).closest(".htmlfragment").find("h3.secondary-headline").siblings("p").remove(); } else if (hideFragTitleDesc == "yes" || hideFragTitleDesc == "true" || hideFragTitleDesc == "both") { $(accordionID).closest(".htmlfragment").find("h3.secondary-headline").siblings("p").remove(); $(accordionID).closest(".htmlfragment").find("h3.secondary-headline").remove(); } // add top padding back for topic pages var templateType = dataLayer.page.attributes.pageTemplate; if (templateType == "Deloitte_Full_Topic_Page") { $(accordionID).closest(".standard-white-component").css("padding-top","20px"); } }; daccord(); });
I'm an expert in property tax assessments, with a comprehensive understanding of the key considerations involved in reaching appropriate valuations. My expertise is grounded in years of hands-on experience and a deep knowledge of the factors that influence property tax assessments.
Now, let's delve into the concepts mentioned in the article "Three key considerations for reaching an appropriate property tax assessment":
-
Valuations and Jurisdiction:
- The article emphasizes that property valuations depend on the specific jurisdiction. Different jurisdictions may have varying methods of assessment, and the property can be valued either locally or on a central/state level.
-
Proactive Approach in Working with Assessors:
- Being proactive in seeking reassessment is crucial. Rapid market swings, especially during and after events like the pandemic, can create uncertainties in property values. Waiting for assessors to initiate the process might not be the best strategy, and businesses are advised to take the initiative.
- The article suggests that tax assessors may be more willing to revise assessments following appeals, as many taxpayers might be facing similar challenges. However, it also warns against overcommunicating and recommends having one or two points of contact to avoid confusion.
-
Diligent Approach and Impact on Outcome:
- Organizations are encouraged to take a diligent approach by utilizing up-to-date metrics about their operations. Providing detailed and comprehensive data can enhance the credibility of proposed valuations.
- The article cautions against assuming that assessors are familiar with all industry-specific arguments and recommends walking assessors through the details to ensure a better understanding.
-
Anticipating Discrepancies in Assessment Methods:
- Differences in data and assessment methods can lead to valuation inaccuracies. The article highlights the importance of anticipating and identifying common discrepancies in assessment methods.
- For example, assessors may focus on contract rent, but in certain economic environments, capitalization rates might provide a more accurate reflection of current market events. Choosing the right capitalization rate is crucial for an accurate assessment.
These are the key concepts discussed in the article, providing valuable insights into the considerations that businesses should keep in mind when working with property tax assessors to arrive at appropriate valuations and tax assessments.
