CAE Appeals and Dispute Resolution Flashcards

What is the function of a Board of Review (or Board of Equalization) in the property tax appeal process?

Answer: To provide administrative review of assessment complaints before judicial proceedings

A Board of Review or Board of Equalization serves as the administrative tribunal that hears taxpayer complaints about assessments before disputes proceed to court.

Which approach is most appropriate when the subject property has no recent sales but comparable properties have sold?

Answer: Sales comparison approach using adjusted comparable sales

When the subject has not sold recently, the sales comparison approach using adjusted comparables is most appropriate to estimate market value for appeal purposes.

What is 'equalization' in the context of a state board of equalization's role in appeals?

Answer: Adjusting assessments across jurisdictions to achieve a uniform assessment level for state purposes

State equalization adjusts assessed values across counties or jurisdictions to achieve a uniform assessment ratio for state aid, levy allocation, or other state purposes.

Which remedy is typically available if a taxpayer wins a property tax appeal after already paying the full tax?

Answer: A credit applied to next year's tax bill or a direct refund

When a taxpayer succeeds in an appeal after paying, most jurisdictions provide a refund of the overpaid taxes or apply a credit toward the next tax period.

What is the purpose of a 'comparative unit method' when used in an assessment appeal involving commercial property?

Answer: To directly compare the sale price per square foot of comparable properties

The comparative unit method compares sale prices per square foot (or other unit) of comparable properties to the subject to support a sales comparison analysis in an appeal.

In property tax appeals involving income-producing property, what does 'economic rent' refer to?

Answer: The market rent a property would command if available for lease at the valuation date

Economic rent (market rent) is the rental income a property would command in the open market as of the valuation date, which is used in income approach analysis for appeals.