Property Tax Consultants can challenge an assessment ratio in cases where an assessment roll is suspected of being over-assessed. Rather than filing individual appeals for each homeowner, which can be time-consuming and costly, they can represent all homeowners in a district, town, or county. This approach eliminates the need for multiple appeals and ensures all homeowners are represented.
Over-assessment
can occur when a county's automated valuation model (AVM) fails to accurately
assess values in certain areas or segments of the value curve. Standard
statistical tests can help identify these over-assessments, which can pave the
way for a potentially successful ratio challenge.
Sid:
I plan to challenge the Just Value of over-assessed taxing districts in the
county. To do that, I have created the Just Value Ratio. This ratio is
calculated by dividing the county's just value on the tax roll by my
regression-based challenger model values. I developed the model using the
county's Just value as the dependent variable and several property
characteristics variables that were statistically significant.
All
taxing districts must be valued at or near the countywide ratio of 90. However,
before I can challenge specific district ratios, I need to fully understand how
the major districts in the county have performed relative to the countywide
ratio statistics.
Please
study the table below and provide a detailed explanation of these stats,
helping me identify the districts where the county's model has not performed
efficiently, thus offering an opportunity for a ratio challenge.
ChatGPT: To start, let's break down the information in the table
provided:
1.
Taxing District: This column lists the different taxing districts
in the county.
2.
Parcel Count: This column indicates the number of parcels
(properties) in each taxing district.
3.
Just Value Ratio: This ratio is calculated by dividing the
county's just value on the tax roll by the regression-based challenger model
values developed by Sid.
Based
on the information provided, the districts with potential opportunities for
over-assessment challenges, which can potentially lead to assessment reductions
and tax savings, are:
District 2:
- Just Value
Ratio: 97
- Analysis:
The just value ratio for District 2 is higher than the countywide ratio of
90, indicating potential overassessment. This suggests that properties in
this district may have been assessed at a higher value than what the
county's model predicted. Challenging the ratio in this district may
result in assessment reductions and potential tax savings for property
owners.
District 6:
- Just Value
Ratio: 99
- Analysis:
The just value ratio for District 6 is significantly above the countywide
ratio of 90, indicating potential overassessment. Challenging the ratio in
this district may lead to assessment reductions and significant tax
savings for property owners.
District 4:
- Just Value
Ratio: 92
- Analysis:
The just value ratio for District 4 is slightly above the countywide ratio
of 90, suggesting marginal overassessment. Challenging the ratio in this
district may result in minor assessment reductions and marginal tax
savings for property owners.
UNINCORP:
- Just Value
Ratio: 92
- Analysis:
The just value ratio for the UNINCORP district is slightly above the
countywide ratio of 90, indicating marginal overassessment. Challenging
the ratio in this district may lead to minor assessment reductions and
marginal tax savings for property owners.
Please
note that this analysis is based on the provided information and it is
advisable to consult with a tax professional or relevant authorities for
accurate and up-to-date assessments before pursuing any challenges.
Bard: Sure, I've been focusing on improving my expertise in
solving ratio analysis problems. Here's how the ratios compare to the
countywide ratio of 90:
Districts with potentially overvalued ratios:
- District 2: 107.78% overvalued - This district remains the strongest candidate for a ratio challenge due to its significant overvaluation compared to the countywide ratio.
- District 6: 109.9% overvalued - Similar to District 2, this district also remains a prime candidate for challenging the overvalued ratio.
- District 4: 102.22% overvalued - This district shows moderate overvaluation and could be a potential challenge depending on the specific property values and your risk tolerance.
- Unincorporated: 102.22% overvalued - Similar to District 4, the unincorporated area shows moderate overvaluation and could be a potential challenge depending on your specific situation.
Districts with potentially undervalued ratios:
- District 1: 81/90 * 100% = 90% - This district is actually undervalued by 10% compared to the countywide ratio. You might want to consider investigating why your model is undervaluing properties in this area and potentially adjust it accordingly.
- District 3: 84/90 * 100% = 93.33% - This district shows a slight undervaluation of about 6.67% compared to the countywide ratio. While the undervaluation is smaller than District 1, it might still be worth investigating, especially if there are a significant number of properties affected.
Remember,
this analysis is based on the ratios provided and doesn't take into account
specific property details or your individual circumstances. Consulting with a
qualified tax professional is crucial to determine the best course of action
for your specific situation. They can help you understand the reasons behind
the undervaluation or overvaluation in certain districts and advise you on
whether challenging the assessment is worthwhile.
Note: All conversations here are unedited. E&OE.
Note: ChatGPT is a registered trademark of OpenAI, while Bard is a registered trademark of Google.
