By Paul Shoup, Senior Managing Consultant, Washington D.C.
In the state of Maryland, properties are reassessed every three years (triennial) and assessments are phased in over the three-year cycle. Real estate assessment appeals can be filed subsequent to the issuance of a new notice of value at the beginning of a new cycle and, if successful, can impact all three years. In addition, an appeal can be filed prior to January 1 in the 2nd and/or 3rd year of the cycle.
The process includes a first level administrative appeal with the State Department of Assessments & Taxaztion (SDAT); followed by, if warranted, a second level appeal to Property Tax Assessment Appeals Board (PTAAB); and, if further warranted, a third level appeal to Tax Court.
In many areas across the country, some taxing jurisdictions have begun the process of filing what has become known as "reverse appeals," whereby the jurisdiction seeks an increase of a property assessment. Working internally and with consultants, these jurisdictions will track property sales, property types (e.g. apartments), and other information to gauge potential opportunities to seek higher valuations and real estate tax revenues. It has become common practice in Pennsylvania for school districts to commence appeals against property owners seeking to increase assessments and tax revenue.