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04-06-2009 Agenda and Responses to Question from Members of the Local Board of Appeal . ' �-�c-� CITY OF SCANDIA CITY COUNCIL AGENDA Special Meeting Board of Appeal and Equalization Monday, April 6, 2009 5:00 p.m. to 6:00 p.m. 1. Call to Order 2. Conduct Board of Appeal and Equalization 3. Determine Whether Continuation Meeting is Required (Continuation date would be 6:30 p.m., Tuesday Apri121, 2009) 4. Adjournment • ,1t 4t !E � � 2009 Assessment Report �a�25 Responses to typical questions from members of the Local Board of Appeal What is the purpose of the Local Board of Appeal? The Local Board of Appeal and Equalization is an important part of the appeals portion of the � s�" r "� 1q assessment cycle. The Board provides property owners with an opportunity to review and challenge, if "� � � necessary, their estimate of market value and/or classification that will be used for the dispersal of the � �-a�-•} � �'` � following years taxes. � ' 4� h � � What are the requirements for the meeting? � " � The statutory requirements are: � �• On or before February 15 of each year the assessor shall give written notice of the time and place to the city or township clerk. \ �� • The clerk shall give published and posted notice of the meeting at least ten days before the date of the meeting. `� • Valuation and classification notices for the January 2, 2009 assessment are mailed to property owners by the County Assessor's Office at � least ten days prior to the Board of Appeal and Equalization. �� • The Local Board of Appeal and Equalization is an official public meeting similar to a City Council or Township Board meeting and cannot � be convened without a quorum and the city or township clerk has the responsibility of keeping the minutes of the meeting. `� • The Board must complete its work and adjourn within twenty days of the time of convening but not outside the April 1 to May 31 time � period. � � • The Local Board of Appeal and Equalization has the authority to reduce and increase assessments upon petition of the propeny owner. The � total reductions may not reduce the aggregate assessment by more than one percent. If the total reductions lower the aggregate assessment by more than one percent, none of the adjustments may be made. There is no limit to the amount an assessment can be increased. �,;y At the conclusion of the meeting, all Board members in attendance are required to review and sign Form Q1-4 which is the statutory reporting \ form for the meeting. � � .� � # �w +� ✓age 2G 2009 Assessment Report Are the changes made at the local level reviewed? Board.) For example if the property owner states that they believe that The Washington County Assessor reviews all value adjustments made their home is over valued because it is located on a busy street, they by the Local Boards of Appeal and the changes made by the appraisers should present comparable sales that are also influenced by the same prior to the County Board meeting. If the County Assessor finds a factor. The propeny owner should have some information to support value adjustment that is not in the best interest of all property owners their claim of being over valued in order to assist the Local Board in our county, additional information may be requested to support members in making their decision. With the large number of the change. If adequate information does not support the valuation homeowners who have refinanced in the past couple of years, there are adjustment, or information is not provided, the County Assessor will Plenty of appraisals that can be produced as evidence. make a recommendation to the County Board to change the estimated �.,,...,�„�„� ..,�._.._, market value back to an acceptable level in order to rectify the situa- __ tion. The ro ert owner involved will be notified in advance of this � "` � y P P Y — � ,.,-� _ ���_.. — ::: recommendation. — _ —^'--- � ,s� ��--"' What is the format for the Local Board of Appeal? The statutory requirements are listed above and the format must accommodate those. The method in which the meeting is conducted In the case of appeals made by income producing(commercial/industrial is at the discretion of the local officials (it is again emphasized that it and apartment) property owners, it is recommended that the procedure is their meeting not that of the County or local assessor). The county �rrently in place at the county level and used in tax court appeals be staff or local assessor can provide you with background information followed. The commercial/industrial appraiser is to first conduct a regarding how previous meetings were conducted. physical inspection of the property. They also determine what information may be available and beneficial in establishing the On what basis should I make my decisions as a Local Board member? estimated value. That information is then requested from the propeny You have an obligation to objectively listen to the property owner's owner or their representative. This information typically consists of appeal which should focus on the market value and facts that impact the rent rolls, copies of leases currently in place, gross sales, 3 years of market value (there are occasionally appeals of classification which are income & expense data and appraisals. After gathering the applicable usually technical and legal in nature and should be sent to the County �c��,�;,�r,����„PpK�z» r � � � . 2009 Assessment Report �a�27 (Continued from page 16) information, staff can conduct a thorough analysis of the market value. Staff is instructed not to make changes if the information requested is withheld. It is up to the individual Boards as to what procedure you choose to use in determining if an adjustment in value is warranted. What options does the property owner have if they do not agree with the results from the Local Board of Appeal? The next step in the appeals process is: 1. Appeal to the County Board of Appeal and Equalization. A property owner must appear at the Local Board of Appeal and Equalization in order to maintain their right to appeal to the County Board of Appeal and Equalization (application deadline is May 8,2009); 2. Tax Court. _ What procedure should a Board member(s) (or city/township staff involved with the Board proceedings) follow to appeal their own market value? There are no statutory provisions that address the procedure to follow in these situations. In order to not be put in a position that may be per- ceived as a conflict of interest by the local property owners and the Department of Revenue, it is strongly suggested that these appeals be han- dled as follows: If a Board member(s) (or city/township staff inember(s) involved with the Board proceedings) chooses to appeal the valuation on their home, or any other property that they own, they should register their appeal by having their name read into the meeting minutes. At that point the Local Board should recommend no change in value and send the appeal to the County Board of Appeals for review. If a Local Board member(s) (or city/township staff inember(s) involved with the Board proceedings) chooses to ignore this suggestion they should abstain from voting and provide the Board members with credible supporting evidence in order for the Board to make a decision as to why their propeny is overvalued.