Home owners should prepare for property tax appeals


Hotel owners, operators and other hotel entities should start preparing now for property tax appeals challenging valuations that are likely and will continue to be too high for the next several years. The challenges to the assessed value of hotels and accommodation are particularly critical for the year 2021, as the assessment dates for tax assessments in many jurisdictions will have dropped during the worst months of the pandemic.

Understanding California Property Tax Appeals

On the January 1, 2021 As of the valuation date, the California regional stay-at-home order was in effect and actively restricted the use of hotels and accommodations in California.1 Therefore, host entities may wish to appeal the listed values ​​of their properties, as the economic climate and government restrictions in place as of the lien date of January 1, 2021 have clearly contributed to the decline in the market value of these properties. properties.

In California, when the fair market value of a property declines below its assessed value on the assessment roll of the county where the property is located, taxpayers can, and should, proactively ask the assessor to reduce the valuation roll. assessed value. This is often referred to as a “Prop. 8 Request, ”referring to the proposal to amend the California Constitution to require that assessed values ​​be reduced to reflect declines in market value below the base year adjusted value.

For informal review, some jurisdictions have a form by which such a request can be made, but a simple letter will suffice. Make sure you identify the correct recipient to make sure your request doesn’t get lost. Such a request should be supported by evidence of stabilized income, such as a 2019 income statement, as well as similar information for 2020, and budgets or forms for 2021 and if possible, 2022. If an assessor requests such information, provide them quickly. Assessors should finalize the tax roll before the end of June, so this request should be made as soon as possible, preferably before the end of April, to give the assessor time to process the assessment. request. Reductions of around 25% appear to be emerging. Such reductions are temporary.

Taxpayers should also strongly consider filing a Request for assessment call for a reduced appraisal due to a decrease in value with their local appeals committee. This is so even if a Prop reduction. 8 is performed, but such reduction is insufficient. Claims based on impairment should be filed within the normal appraisal filing period for that county.2 If an appeal is not filed in a timely manner, the taxpayer usually loses the ability to challenge the value later.

If the county appraiser has chosen to mail appraisal notices to all property owners by August 1, the usual appraisal filing period for all property is July 2 to September 15.

If the county appraiser does not elect to mail appraisal notices to all property owners by August 1, the usual appraisal filing period for all property is July 2 to November 30.

The appeal should be based on the market value of the property as of January 1 of the year in which the appeal is filed.

Colorado Property Tax Overview

Colorado appraisers reassess properties every odd-numbered year, making 2021 a reassessment year. Through May 1 County Assessors will mail Assessment Notices, which will indicate the change in assessment for that year.

For 2021, the base period of 18 months (sometimes referred to as the data collection period) is January 1, 2019 – June 30, 2020. Since hospitality-related properties were significantly affected during the base period due to closures, restrictions and lost revenue, hotel owners should consider protesting if the property’s valuation of appraiser is greater than market value. Property tax claims must be filed by June 1.

Overview of property tax in New York

In New York, real estate is reassessed every year. Homeowners must file a Statement of Real Estate Income and Expenses (electronically) by June 1 of each year showing the previous year’s income and expenses that the New York Department of Tax and Finance will use to arrive at the evaluation of the following January. The Department issues a property value notice with the provisional appraisal by January 15, indicating the value it has placed on the property as of the January 5 tax status date. In order to challenge the assessment, a request for correction must be filed. with the New York City Tax Commission by 1st of March for all properties other than one, two or three-family houses. Fiscal Commission candidates whose properties have an actual value of $ 750,000 or more have until March 24 to file a Tax Commission Income and Expense Statement updating the income and expenses for the past year. The Taxation Commission will hear and rule on all claims within one year of filing. If an offer to reduce the assessment made by the Tax Commission is not accepted by the taxpayer, or if no offer is made, owners should file a petition with the New York State Supreme Court. in the county in which the property is located before October 1. 24.

The Temporary Suspension and Amended New York Disaster Emergency Executive Orders laws were issued after the January 5, 2020 tax status date and did not take into account the values ​​for the 2020/2021 tax year. These will be factored into valuations starting January 5, 2021, as they have clearly contributed to the decline in the market value of these properties.

Ruben Sislyan and Jennifer A. Vincent also contributed to this article.

1 Regional Stay-at-Home Order, Cal. Ministry of Public Health (December 3, 2020).

2 California Revenue & Taxation Code section 1603.

© 2021 Greenberg Traurig, LLP. All rights reserved. National Law Review, Volume XI, Number 131

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