Appraisal Matters

Key 2 – Avoid “Protective” Appeals

In the last few years, it has become more common for clients to file protective tax appeals on all owned properties. This is a practice that can severely backfire. Many tax appeal consultants use this tactic not only as a marketing tool, touting the advantages to Corporate America, but as the core of their business practice. This creates much more of an adversarial relationship than needs to be.

Across the country, companies that file protective appeals have received assessment increases due to the Assessor’s less conciliatory attitudes toward frivolous tax appeals. Remember that statistically one-third of the properties are under assessed. When you file a tax appeal, you are also opening the assessment up for an increase by the Assessor. Filing appeals on all properties clogs an already overtaxed system and angers Assessors who might normally be open to listening to your case with an open mind.

Once assessments are increased, you then must struggle to have them reduced, with further costs to you. Carefully review your situation to determine if you have a valid case and select properties carefully. Being known by a board or court as a frivolous filer will only impede your legitimate cases.

John Simpson, MAI