Menu

Property Tax Resources

Jan
01

Massachusetts Property Tax Updates

UPDATED December 2021

Massachusetts Fiscal Year 2021 Property Tax Bills have been sent

Most Jurisdictions in Massachusetts sent out there actual fiscal year 2022 property tax bills during December of 2021. The actual property tax bill is the first tax bill of the fiscal year that contains an assessed value and a tax rate. It is from this actual property tax bill that rights of appeal accrue. In most cases the fiscal year 2022 filing deadline is February 1, 2022. It is important to review your actual property tax bill as many communities in the commonwealth now change their assessments each fiscal year. In most cases the timely payment of property taxes is a jurisdictional prerequisite to a valid property tax appeal. Timely payment means that payment must be mailed to the tax collector by the due date. It is incumbent of the taxpayer to prove the date of mailing. Taxpayers need to be vigilant as the taxing authority has the advantage at every turn.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

Continue reading
Jan
01

Michigan Property Tax Updates

UPDATED September 2021

Early Indications: Michigan 2022 Assessments Will Be a Mixed Bag

Assessors are still months away from finalizing their 2022 Michigan assessments, nevertheless, based on feedback from assessors in a number of Michigan jurisdictions from various parts of the State, 2022 assessments could vary greatly depending on the property type and location.  To the extent that the taxable value inflation rate applies, properties’ taxable values are expected to increase more than three percent.  Here are some other early indications of what is in store for Michigan taxpayers:

  • Multi-family. It will not surprise if these properties experience value increases, and more than six percent in some instances. One assessor commented with the sentiment that he knows his values will be below what the sales are indicating, but he is sensing that there are some aberrational transactions occurring with these properties.
  • Industrial.  Industrial property owners can expect value increases. Some will see modest increases, but some assessments for this class very well may increase six percent, or more.
  • Office.  Some assessors are recognizing that while these properties are not yet facing the challenges of hotels, there is softness in the market. None of the assessors surveyed projected material value increases for office properties.
  • Retail.  This group may see the greatest variances. In some jurisdictions, the assessor believes that some retail properties have turned a corner and have become more valuable due to COVID’s impact, whereas others see these properties as suffering.
  • Hotels.  Assessors generally seem to be aware that the challenges created during the pandemic remain, yet few may be willing to materially reduce values, and some may even keep their values the same.

When stepping back and looking at the big picture, 2022 could be an unusual year. Historically, it has often been the case that real estate values generally were falling across the board, such as during the Great Recession, or rising, such as in the recovery years that followed that recession.  Next year’s Michigan assessment changes likely will very much depend on the property type and location. One certainty is that taxpayers should carefully review their 2022 assessment notices, consider whether their taxation is lawful, and talk to their property tax counsel if there is any doubt.

Stewart Mandell
Honigman LLP
American Property Tax Counsel (APTC)

Continue reading
Jan
01

Minnesota Property Tax Updates

Updated december 2020

Assessors Struggle with COVID Valuations

In Minnesota, the valuation date for pay ’21 taxes was January 2, 2020.  Assessors have taken the position that COVID impacts for 2021 were neither known nor appreciated at that date, and that pay ’21 tax appeals should not consider the impacts from COVID. 

Now, assessors are faced with making valuations for the January 2, 2021 assessment for pay ’22 taxes, with no argument about the presence of the coronavirus.  Some jurisdictions are asking taxpayers to voluntarily produce sensitive income and expense information about their properties, with the suggestion that cooperation could lead to reduced valuations for the upcoming assessment.

While the prospect of influencing value and taxes downward for pay ’22 is enticing, taxpayers should understand that information they provide may be exposed to other property owners with active tax appeals if used by the assessor or its agent in an appraisal.  Assessors also may misunderstand what property operating information means when it is provide without context.  For example, retail properties have been among the hardest hit by the pandemic.  Tenants have often stopped paying rent, or are paying reduced amounts. However, that information may not be apparent from a rent roll that continues to list face rates pending resolution of the tenancy issues.  An assessor considering this information might assume that impacts on that property have not been significant.

Taxpayers are advised to consult their property tax representatives when approached by an assessing office for proprietary operating information.  Otherwise, they might find their sensitive income information is being used in a way that was not intended.


Mark Maher.
Smith, Gendler, Shiell, Sheff, Ford & Maher
American Property Tax Counsel (APTC)

Continue reading
Jan
01

Missouri Property Tax Updates

Updated June 2016

Personal Property Statute

On August 28, 2015 the Missouri Legislature enacted Section 137.122.1 which requires county assessors to apply the “standardized schedule of depreciation” to determine assessed value of personal property which will be “presumed to be correct.”

Owners may challenge the assessment by presenting substantial and persuasive evidence of value.

It appears many county assessors are resisting using the depreciation concept in setting assessed value. Only time will tell how this plays out.

Jerome Wallach
The Wallach Law Firm
American Property Tax Counsel (APTC)

Continue reading
Jan
01

Nevada Property Tax Updates

Updated december 2021

Whether to challenge a property’s valuation during an epidemic is a complicated decision

The COVID-19 epidemic has had an enormous effect on the economy.  Governor Sisolak’s closure of businesses, the subsequent mask mandate and the ongoing risk of infection have all disrupted business as usual.  For those businesses that rely on customer traffic, particularly those in the service industry, the reduced traffic flow and the increased cost of operating during the pandemic have hurt businesses and the value of the property they occupy.  Nonetheless, the county assessor continues to increase the value of real property.  Consequently, property owners are asking whether it’s time to challenge the valuation of their property.

In Nevada, this is a complicated decision.  The taxable value of properties in Clark County has risen each year for the past 10 years but the actual taxes assessed have not experienced a commensurate increase because of the property tax cap.  The tax cap is not a limitation on increases in value, instead it limits the amount taxes can increase.  Taxes for a property subject to the tax cap are calculated by (a) increasing the taxes paid in the preceding tax year by an applicable tax cap factor and (b) adding the tax attributable to “any improvement to or change in the actual or authorized use of the property” that was not included in the assessment for the prior year.  The portion of the tax which would have been assessed in the absence of the tax cap is treated as an abatement from tax. 

Since property values have been increasing at a faster rate than taxes, the amount of tax abated by the tax cap has grown.  In tax year 2013-14 less than 2% of taxes which would otherwise have been assessed on the value of property in Clark County were abated by the tax cap, while in tax year 2021-22 the portion of taxes abated by the tax cap had grown to more than 22% of the taxes which would otherwise have been assessed.  In other words an increase in value does not create an equal increase in taxes.  Similarly, a reduction in value does not necessarily create tax savings in excess of the amount already abated by the tax cap.

In a valuation appeal, reduction in the value of a property is warranted when the taxable value of the property exceeds its full cash value.  But, reduction of a property’s value to full cash value might not generate tax savings in excess of the savings attributable to the tax cap abatement.  While the boards of equalization are focused on full cash value, the property owner should focus on the effective tax cap value – the value which would result in taxes equal to the taxes computed pursuant to the provisions of the tax cap.  A valuation appeal will only result in tax savings to the extent the resulting taxable value is below the effective tax cap value.

The advent of the tax cap in Nevada has complicated the question of whether or not a valuation appeal is warranted.  While the tax cap often obviates the need for an appeal, it is important to critically examine the tax treatment of property annually to ensure the property owner is paying no more than their fair share of taxes.  Our property tax attorneys know the critical legal and valuation factors that affect the tax treatment of property in Nevada and are prepared to assist property owners in evaluating and, when appropriate, challenging that tax treatment. 

Paul D. Bancroft
McDonald Carano, LP

Continue reading
Jan
01

New Hampshire Property Tax Updates

Updated December 2021

New Hampshire property tax bills have been sent

Most communities in New Hampshire have sent out their 2021 property tax bills. These tax bills have an assessing date of April 1, 2021. The property tax assessment of taxable real estate should be the fee simple market value of the property as of April 1, 2021, multiplied by the jurisdiction's median assessment ratio. If your property is assessed in excess of that amount you may have grounds for a tax appeal. In general, abatement applications must be filed with the local assessors by March 1, 2022. If you are aggrieved by the action or inaction of the local assessors, you may file a petition with the State Board of Tax and Land Appeals or the Superior Court in the county where the property is located. The deadline for filing the petition is generally September 1, 2022. There you will be afforded a full hearing on the merits where the rules of evidence will apply.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

Continue reading
Jan
01

New Jersey Property Tax Updates

Updated MARCH 2019

New Jersey Tax Court Analyzes Freeze Act Invocation and Waiver

A recent New Jersey Tax Court opinion analyzed whether a tax payer waived N.J.S.A. § 54:51A-8 (“Freeze Act”) protections pursuant to a settlement agreement that expressly invoked Freeze Act application only for the freeze year immediately following the appealed tax year. In 160 Chubb Properties, LLC v. Township of Lyndhurst, the Tax Court held that the taxpayer did not waive Freeze Act application to the second freeze year because Freeze Act protections must be deliberately and intentionally waived. Although the settlement agreement invoked Freeze Act protections for the first freeze year, the agreement did not expressly mention the waiver of application to the second freeze year. Importantly, the Freeze Act is self-executing, thus, invocation is not necessary for its application. Without any indication that the taxpayer requested or agreed to waive Freeze Act protection rights, application to both freeze years was enforceable. 160 Chubb Properties, LLC v. Township of Lyndhurst, 30 N.J. Tax 613, 624-25 (N.J. Tax Ct. 2018).

Gregory S. Schaffer, Esq.
Garippa, Lotz & Giannuario P.C.
American Property Tax Counsel (APTC)

Continue reading
Jan
01

New York City Property Tax Updates

Updated june 2021

Recent Case Law in Property Valuation

The court, in the recent case of Sleepy Hollow County Club against The Town of Ossining, held that the Income Capitalization Method is the appropriate method to value the subject property of Sleepy Hollow Country Club, a Westchester golf course. Sleepy Hollow argued that the assessment should be reduced using the estimated daily fee rate, rejecting the Town’s argument that the club’s exclusivity and trophy-esqe qualities should be taken into account in assessing the property.   

An important hotel valuation case won by Joel Marcus and Philip Azarian of Marcus & Pollack LLP, held that the Marriott Courtyard near LaGuardia Airport was overvalued by the city. The challenge, which is for the fiscal years 2014-2015 through 2018-2019, reduced the hotel’s tax bill by more than $11 million. According to Joel, the city overvalued the hotel because, rather than rely on the property’s actual expenses, it calculated what the hotel’s expenses would have been using a market average. The city also used comps for hotels in Washington and Boston, cities that Joel believes have little relevance to the New York market. Cross examination of the City’s appraiser revealed that his report failed to adequately detail the methodology and data used from comparable properties. (GCP Realty II, LLC, against The Tax Commission of the City of New York and the Commissioner of Finance of the City of New York.) 

Joel R. Marcus
Marcus & Pollack LLP
American Property Tax Counsel (APTC)

Continue reading
Jan
01

New York State Property Tax Updates

Updated December 2002

Hijacking the Assessment Review Process 

New York consistently ranks as one of the highest taxed states in the nation, and local property taxes are 79 percent higher than the national average. Boards of Assessment Review face high rates of complaints and increased pressure by the local governing body to control refund liability.

The evidentiary demands of many Boards have escalated sharply and many initiatives have been criticized as mere attempts by the local governing body to deliberately discourage taxpayers from exercising their right to seek a fair assessment, in conflict with the spirit of New York's Real Property Tax Law.

Perhaps the most flagrant attempt to hijack the review process as a tool to curtail the property owner's right to a fair assessment is found in a recently proposed local law by the new Nassau County Executive. The controversial proposed law requires only commercial property owners who file appeals of their property's assessments to submit a certified appraisal as a condition precedent to reducing an assessment. In the alternative, owners may submit a "bona fide" counteroffer - defined as no less then 85 percent of the County's assessment, or withdraw the appeal altogether. Owners who fail to exercise one of the above options forfeit their right to judicial review and are subject to a $5,000 fine.

Nassau County spends approximately $150 million annually to pay down a $1.1 billion debt from past tax refunds even as taxpayers file more than 100,000 protests annually. More than 80 percent of the annual refund liability goes to commercial property owners. The proposed law by the new County Executive seeks to punish commercial property owners for exercising their constitutional right to a fair assessment and equitable tax burden.

The controversial law must be codified by the Nassau County Legislature as well as the New York State Legislature, which must issue a "home rule" message to authorize the change. However, State Senator Craig Johnson (D-Port Washington) has rejected the County Executive's request to introduce the state legislation, citing concerns that the legislation would be unfair to commercial property owners and was unconstitutional on its face. Of the many concerns with the proposed law, it was rejected by Sen. Johnson because it is punitive and bullies commercial property owners to settle within a 15 percent margin that deprives the owner of the right to a fair assessment and an opportunity to be heard.

Michael Martone
Koeppel Martone & Leistman, L.L.P.
American Property Tax Counsel (APTC)

Continue reading
Jan
01

North Carolina Property Tax Updates

Updated September 2015

North Carolina

The North Carolina General Assembly has enacted legislation which exempts from property tax the increase in the value of real property held for sale by a builder. Effective for tax years beginning January 1, 2016, and applicable to improvements made after July 1, 2015, improvements to single family or duplex residential real property held for sale by builders and commercial real property held for sale by builders are excluded from taxation as long as the property is held for sale. Applications for exclusion must be filed annually.

Charles B. Neely, Jr.
Nancy S. Rendleman
Williams Mullen
American Property Tax Counsel (APTC)

Continue reading

By accepting you will be accessing a service provided by a third-party external to https://www.aptcnet.com/

American Property Tax Counsel

Recent Published Property Tax Articles

Don't Just Accept Your Tax Assessment

Ensure tax bills reflect continuing value reductions for office assets caused by COVID's long-term effects.

Since early 2020, the COVID-19 pandemic has upended lives and disrupted the normal course of businesses, including those in the commercial real estate market. As in many other sectors, however, this public health crisis has not...

Read more

How to Lower Excessive Property Tax Assessments in a COVID-19 World

The right to appeal property tax assessments may be more important than ever in the wake of COVID- 19. Despite the pandemic's disastrous and continuing effects on the value of many classes of real estate, some property owners saw tax assessments increase dramatically in 2021 and fear 2022 will bring additional...

Read more

Pandemic Hits Movie Theater Property Values

But taxpayers can take certain measures to get a fair shake on their tax assessments.

Diminishing tax liability may offer a silver lining amid a horror show of declining property values playing out for owners of silver screen properties across the nation. Many theater owners will pay more than their...

Read more

Member Spotlight

Members

Forgot your password? / Forgot your username?