Perceptions outside of the niche practice of property tax often differs from those perceptions within. Many people outside of this practice know of the attorneys who often go to trial and to the Court of Appeals. Typically, people want an attorney with a lot of trial experience and that is not a bad thing in and of itself. But you should ask yourself whether you want an attorney who settles little, tries cases a lot, hires expensive appraisers in most cases, takes cases up to the Arizona Court of Appeals regularly, and charges fees only on an hourly basis or an attorney who settles almost all of his or her cases well, most often does not have to engage an appraiser at the client's expense, rarely has a case taken up on appeal, and has a flexible fee structure. Many of the attorneys in the property tax field charge only on an hourly basis. This can be very expensive, especially not knowing the outcome. Some may wonder whether the attorney has no incentive to settle or takes cases blindly not really knowing whether the case should have been filed in the first place so as to make money to the client's detriment. I am not suggesting an attorney would do that. But I know the thought creeps into the heads of clients.
Before I commit to taking a case, I will evaluate the case quickly to get an idea whether the case is worthwhile and arrive at an expectation for success and the amount of that success. Depending on the circumstances, I may charge for my time to evaluate the case, usually limited to an hour, regardless of how much time I spend. Should I conclude the case if worth appealing, I will discuss with you attorney fee options. Most of my clients prefer to pay me on a percentage fee basis where I am paid a percentage of the tax savings. Some of my clients will opt to split the percentage fee and my hourly fee. A few of my clients decide to pay me on an hourly basis. There are a few exceptions to this depending on the expected outcome. Regardless, I will try to find a fee basis that you would find comfortable.
If you are interested in learning more about property tax appeals or about appealing the property tax on your property, then please call me at 480.612.0577 and let it ring through. You also may email me at mtynanlaw@cox.net with your questions or even your property address and/or parcel number so we can explore whether a property tax appeal is warranted. I will promptly respond to all communications.
Wednesday, July 17, 2013
June 2013 successes
During the past few months my clients received tax refunds in the hundreds of thousands of dollars. One notable case involved a luxury home in Paradise Valley where I reduced the full cash value of the home from over $5 million to just over $2 million for three years. Not only did we get the Assessor to reduce the per square foot value, but I discovered an almost 1,000 square foot discrepancy in the total square feet of the home that reduced the total square footage by one-tenth. This will result in a perpetual tax savings. This case, like almost all of my cases, settled without having to hire an appraiser or go to trial.
I settled another case in Paradise Valley of a luxury home where we reduced the full cash value from over $5 million to below $2 million for two years. Like the previous case, no appraisers were involved and the case settled without going to trial.
I have several property tax appeals involving vacant land. In one case involving a large tract of land in the southwest valley, we reduced the per square foot value by almost 80% and saved my client hundreds of thousands of dollars just in the first year of the appeal. Because of the large reduction in the first tax year, the subsequent years appeals warranted lesser reductions. Nevertheless, I still was able to save my client around an additional $150,000 in property tax.
In another appeal of vacant land in the southeast valley, the property was zoned both for commercial and residential uses. This case also settled without benefit of an appraiser and saved my client well over $100,000. We now are appealing the 2013 and 2014 tax year full cash values. The 2013 tax year valuation has settled on the value I put before Maricopa County. We are awaiting a response from Maricopa County on the settlement offer I made on the 2014 tax year full cash value. I expect that will settle, as well.
I have had many more successes earlier this year. I was able to get Maricopa County to agree to reduce the full cash value of a commercial property near the Sky Harbor Airport from $7.1 million to over $2 million. This appeal involved several tax years and saved my client several hundreds of thousands of dollars. Currently, we are appealing the 2014 tax year and are awaiting a response to my offer from Maricopa County.
There were several other cases we settled well for my clients this year involving office buildings, residential vacant land, apartment buildings, and a warehouse near downtown Phoenix, among others. The warehouse appeal was interesting. Although it was a warehouse, it was dilapidated and not in use. Not only did Maricopa County agree to settle close to the value we sought, but Maricopa County also agreed to reclassify the property as vacant with a 16% assessment ratio from commercial with a 20% assessment ratio. This alone would account for a 20% reduction in property tax.
I have many more cases in varying degrees of progress. Several are close to settling. Should you wish to explore whether I can obtain tax savings for your property, then please contact me either on my office phone at 480.612.9577 or my cell phone at 602.677.2691. Better yet, send me an email at mtynanlaw@cox.net. I will respond.
I settled another case in Paradise Valley of a luxury home where we reduced the full cash value from over $5 million to below $2 million for two years. Like the previous case, no appraisers were involved and the case settled without going to trial.
I have several property tax appeals involving vacant land. In one case involving a large tract of land in the southwest valley, we reduced the per square foot value by almost 80% and saved my client hundreds of thousands of dollars just in the first year of the appeal. Because of the large reduction in the first tax year, the subsequent years appeals warranted lesser reductions. Nevertheless, I still was able to save my client around an additional $150,000 in property tax.
In another appeal of vacant land in the southeast valley, the property was zoned both for commercial and residential uses. This case also settled without benefit of an appraiser and saved my client well over $100,000. We now are appealing the 2013 and 2014 tax year full cash values. The 2013 tax year valuation has settled on the value I put before Maricopa County. We are awaiting a response from Maricopa County on the settlement offer I made on the 2014 tax year full cash value. I expect that will settle, as well.
I have had many more successes earlier this year. I was able to get Maricopa County to agree to reduce the full cash value of a commercial property near the Sky Harbor Airport from $7.1 million to over $2 million. This appeal involved several tax years and saved my client several hundreds of thousands of dollars. Currently, we are appealing the 2014 tax year and are awaiting a response to my offer from Maricopa County.
There were several other cases we settled well for my clients this year involving office buildings, residential vacant land, apartment buildings, and a warehouse near downtown Phoenix, among others. The warehouse appeal was interesting. Although it was a warehouse, it was dilapidated and not in use. Not only did Maricopa County agree to settle close to the value we sought, but Maricopa County also agreed to reclassify the property as vacant with a 16% assessment ratio from commercial with a 20% assessment ratio. This alone would account for a 20% reduction in property tax.
I have many more cases in varying degrees of progress. Several are close to settling. Should you wish to explore whether I can obtain tax savings for your property, then please contact me either on my office phone at 480.612.9577 or my cell phone at 602.677.2691. Better yet, send me an email at mtynanlaw@cox.net. I will respond.
Friday, June 7, 2013
Property Tax Valuation Notice
I previously discussed how in February you receive your valuation notice from the Assessor and that the deadline to appeal to the Assessor is usually sometime in April and to the Arizona Tax Court, on or before December 15.
What people forget is that the valuation year is the year before the tax year. In February of this year, we received our valuation notices for the 2014 tax year. In October you will receive your 2013 tax year bills.
Often it is only when people review their tax bills that they realize they should have appealed. But by then it is too late as the last appeal deadline was December 15 of the previous year. There is an exception. If you purchase your property after December 15, 2012, then you will have until December 15, 2013 to file your appeal for the 2012 tax year.
Also, when you review your tax bill, please keep in mind there are two basic issues you can appeal: classification and valuation. Is the property overvalued? Is the property classified as commercial (19.5% assessment ratio) where there is a house on it (10% assessment ratio)? Is the property classified as commercial (19.5% assessment ratio) where it is vacant without use and should be classified as vacant (16% assessment ratio)? We have no control over the tax rates which have a lot to do with the amount of our taxes compared to the value of the property. It is the tax rates that give you higher taxes than your friend who lives not that far away.
I suggest you pay your property tax timely as the delinquent interest rate is 16%. Conversely, if you overpay your property tax and the Treasurer pays you a refund, the current interest rate on the overpayment is 4.25%. This hardly seems fair, but this is the law.
Just keep in the back of your mind that early next year when you receive your Assessor valuation notice, it will be for the 2015 tax year.
What people forget is that the valuation year is the year before the tax year. In February of this year, we received our valuation notices for the 2014 tax year. In October you will receive your 2013 tax year bills.
Often it is only when people review their tax bills that they realize they should have appealed. But by then it is too late as the last appeal deadline was December 15 of the previous year. There is an exception. If you purchase your property after December 15, 2012, then you will have until December 15, 2013 to file your appeal for the 2012 tax year.
Also, when you review your tax bill, please keep in mind there are two basic issues you can appeal: classification and valuation. Is the property overvalued? Is the property classified as commercial (19.5% assessment ratio) where there is a house on it (10% assessment ratio)? Is the property classified as commercial (19.5% assessment ratio) where it is vacant without use and should be classified as vacant (16% assessment ratio)? We have no control over the tax rates which have a lot to do with the amount of our taxes compared to the value of the property. It is the tax rates that give you higher taxes than your friend who lives not that far away.
I suggest you pay your property tax timely as the delinquent interest rate is 16%. Conversely, if you overpay your property tax and the Treasurer pays you a refund, the current interest rate on the overpayment is 4.25%. This hardly seems fair, but this is the law.
Just keep in the back of your mind that early next year when you receive your Assessor valuation notice, it will be for the 2015 tax year.
Arizona Real Property Tax Overview
In February of 2013, property owners should have received a Notice of Valuation from the county assessor. This Notice of Value was for the 2014 tax year. The Notice of Value contains three pieces of useful information.
Full Cash Value or FCV is the value the assessor believes your property is worth as of January 1, 2013.
Limited Property Value, or LPV, is a value set by statute which accounts for roughly two-thirds of your total property tax. The LPV may be less than the FCV, but it will increase every year until it equals the FCV. It will never exceed the FCV.
The deadline to appeal to the assessor. This date typically is in April.
There are a few reasons why you might want to appeal:
The FCV is greater than your property is worth based on the net income of the property or comparable sales.
In the case of developments with a homeowner’s association, the common areas are not valued at $500 per parcel.
A portion of the property is classified as vacant land [16% assessment ratio] as opposed to residential [10% assessment ratio].
What the Notice of Valuation does not say is that you have the right to appeal directly to the Arizona Tax Court at any time during the administrative appeal process or outside of the administrative appeal process. In any case, the direct Tax Court appeal must be brought on or before December 15, 2013.
For example, if you appealed to the assessor, and then to the State Board of Equalization (SBOE), you can appeal to the Arizona Tax Court at any time and not more than sixty days after the date of the last decision you received in the administrative appeal process. Or you can avoid the administrative appeal process and appeal to the Arizona Tax Court on or before December 15, 2013. Please keep in mind your appeal is for the 2014 property tax.
There are advantages and disadvantages to filing administratively and in the Tax Court. In the administrative appeal process there is no filing fee whereas in Tax Court there is a $280 filing fee as well as the cost of serving the Summons and Complaint on the county in which the property is located. Furthermore, you get two opportunities to obtain a reduction administratively that you would not receive if you appealed directly to the Tax Court. Lastly, a property owner is better able to represent himself in the administratively appeal process and can save the fees he or she would have to pay to either a tax agent or an attorney.
Conversely, you are more likely to obtain a more meaningful result in a Tax Court appeal, and it is more likely you will receive your tax reduction
What follows is a brief time line to help you evaluate what course of action you might consider:
January 1 - the valuation date for next year’s taxes
January or February - valuation notices are mailed for next year’s taxes
April - the deadline to appeal to the assessor
August/September - tax bills are mailed fo the present tax year
December 15, - the deadline to directly appeal to the Arizona Tax Court or 60 days after your last notice of decision, whichever is later
Full Cash Value or FCV is the value the assessor believes your property is worth as of January 1, 2013.
Limited Property Value, or LPV, is a value set by statute which accounts for roughly two-thirds of your total property tax. The LPV may be less than the FCV, but it will increase every year until it equals the FCV. It will never exceed the FCV.
The deadline to appeal to the assessor. This date typically is in April.
There are a few reasons why you might want to appeal:
The FCV is greater than your property is worth based on the net income of the property or comparable sales.
In the case of developments with a homeowner’s association, the common areas are not valued at $500 per parcel.
A portion of the property is classified as vacant land [16% assessment ratio] as opposed to residential [10% assessment ratio].
What the Notice of Valuation does not say is that you have the right to appeal directly to the Arizona Tax Court at any time during the administrative appeal process or outside of the administrative appeal process. In any case, the direct Tax Court appeal must be brought on or before December 15, 2013.
For example, if you appealed to the assessor, and then to the State Board of Equalization (SBOE), you can appeal to the Arizona Tax Court at any time and not more than sixty days after the date of the last decision you received in the administrative appeal process. Or you can avoid the administrative appeal process and appeal to the Arizona Tax Court on or before December 15, 2013. Please keep in mind your appeal is for the 2014 property tax.
There are advantages and disadvantages to filing administratively and in the Tax Court. In the administrative appeal process there is no filing fee whereas in Tax Court there is a $280 filing fee as well as the cost of serving the Summons and Complaint on the county in which the property is located. Furthermore, you get two opportunities to obtain a reduction administratively that you would not receive if you appealed directly to the Tax Court. Lastly, a property owner is better able to represent himself in the administratively appeal process and can save the fees he or she would have to pay to either a tax agent or an attorney.
Conversely, you are more likely to obtain a more meaningful result in a Tax Court appeal, and it is more likely you will receive your tax reduction
What follows is a brief time line to help you evaluate what course of action you might consider:
January 1 - the valuation date for next year’s taxes
January or February - valuation notices are mailed for next year’s taxes
April - the deadline to appeal to the assessor
August/September - tax bills are mailed fo the present tax year
December 15, - the deadline to directly appeal to the Arizona Tax Court or 60 days after your last notice of decision, whichever is later
Real Property Tax Notice of Value
In February of 2013, property owners received a Notice of Valuation from the county assessor. This Notice of Value is for the 2014 tax year. The Notice of Value contains three pieces of useful information:
o Full Cash Value or FCV is the value the assessor believes your property is worth as of January 1, 2013.
o Limited Property Value, or LPV, is a value set by statute which accounts for roughly two-thirds of your total property tax. The LPV may be less than the FCV, but it will increase every year until it equals the FCV. It will never exceed the FCV.
o The deadline to appeal to the assessor. This date typically is in April.
Why you might want to appeal:
The FCV is greater than your property is worth.
In the case of homeowner’s associations, the common areas are not valued at $500 per parcel.
A portion of the property is classified as vacant land [16% assessment ratio] as opposed to residential [10% assessment ratio].
What Your Notice Doesn’t Say
You have the right to appeal directly to the Arizona Tax Court at any time during the administrative appeal process or outside of the administrative appeal process. The direct Tax Court appeal must be brought on or before December 15, 2013.
For example, if you appealed to the assessor, and then to the State Board of Equalization (SBOE), you can appeal to the Arizona Tax Court at any time but not more than sixty days after the date of the last decision you received in the administrative appeal process. Or you can avoid the administrative appeal process and appeal to the Arizona Tax Court on or before December 15, 2013.
There are advantages and disadvantages to filing administratively and in the Tax Court. In the administrative appeal process there is no filing fee whereas in Tax Court there is a filing fee and there may be the cost of serving the Summons and Complaint on the county. Furthermore, you get two opportunities to obtain a reduction administratively that you would not receive if you appealed directly to the Tax Court. Lastly, a property owner is better able to represent himself in the administratively appeal process and can save the fees he or she would have to pay to either a tax agent or an attorney.
Conversely, you are more likely to obtain a more meaningful result in a Tax Court appeal with an attorney.
Please feel free to contact me at (480) 612-0577 or mtynanlaw@cox.net.
o Full Cash Value or FCV is the value the assessor believes your property is worth as of January 1, 2013.
o Limited Property Value, or LPV, is a value set by statute which accounts for roughly two-thirds of your total property tax. The LPV may be less than the FCV, but it will increase every year until it equals the FCV. It will never exceed the FCV.
o The deadline to appeal to the assessor. This date typically is in April.
Why you might want to appeal:
The FCV is greater than your property is worth.
In the case of homeowner’s associations, the common areas are not valued at $500 per parcel.
A portion of the property is classified as vacant land [16% assessment ratio] as opposed to residential [10% assessment ratio].
What Your Notice Doesn’t Say
You have the right to appeal directly to the Arizona Tax Court at any time during the administrative appeal process or outside of the administrative appeal process. The direct Tax Court appeal must be brought on or before December 15, 2013.
For example, if you appealed to the assessor, and then to the State Board of Equalization (SBOE), you can appeal to the Arizona Tax Court at any time but not more than sixty days after the date of the last decision you received in the administrative appeal process. Or you can avoid the administrative appeal process and appeal to the Arizona Tax Court on or before December 15, 2013.
There are advantages and disadvantages to filing administratively and in the Tax Court. In the administrative appeal process there is no filing fee whereas in Tax Court there is a filing fee and there may be the cost of serving the Summons and Complaint on the county. Furthermore, you get two opportunities to obtain a reduction administratively that you would not receive if you appealed directly to the Tax Court. Lastly, a property owner is better able to represent himself in the administratively appeal process and can save the fees he or she would have to pay to either a tax agent or an attorney.
Conversely, you are more likely to obtain a more meaningful result in a Tax Court appeal with an attorney.
Please feel free to contact me at (480) 612-0577 or mtynanlaw@cox.net.
2013 property tax appeals
If you purchased real property after December 15, 2012, you still may be able to file a property tax appeal if the property was not previously appealed for the 2013 tax year. This is regardless of what the Assessor's notices say. Also, if you did not appeal to the Assessor for the 2014 tax year, you still may appeal in the Arizona Tax Court, and you have until and through December 15, 2013 to appeal your 2014 tax year valuation and classification. If you wait for your tax bill before you take action, then you will be too late. So review your valuation notices now. You can review your valuation at http://mcassessor.maricopa.gov and your 2012 taxes at www.treasurer.maricopa.gov. Should you have a question about real property tax, then please call me at 480.612.0577 or e-mail your question to mtynanlaw@cox.net.
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