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The Assessor results, of course, are only the first step in the process. What happens through the Board of Review will be what is of most interest. As that data becomes available, we will keep you posted.
Assessor Slightly More Lenient To Smaller Properties
Every year we conduct an Assessor and Board of Review study to measure the success of our tax attorneys in the appeal process and to improve our appraisal methodology. For the 2020 South Tri we used a sample set of 168 appraisals with a total assessed value of $246,145,594. We only included properties where the appraisal was ordered in time to go through the Assessor review and re-review process. The Board of Review is still in process and we will look at those numbers in a future article. This analysis only covers the Assessor and Assessor’s re-review process.
First, we will look at how the Assessor treated what would generally be considered smaller versus larger properties. There were 79 properties in our data set where we did an income/sales comparison approach methodology and 88 properties where a sales comparison only (limited) appraisal was used. In general, it appears the Assessor was somewhat more receptive to the limited appraisals relative to the income/sales comparison approach appraisals. The limited appraisals averaged an 8.64% reduction and had a median relief of 5.98%. The income/sales comparison approach appraisals averaged a slightly lower 7.69% reduction with a median relief level of only 2.65%.
We also looked at how the Assessor treated various property classes when the assessments were challenged. Our sample set included 60 industrial properties, 60 retail properties and 37 office properties. The industrials received the least relief with a 6.21% average reduction and a 3.09% median level of relief. Retails received better results with a 7.93% average reduction and 4.82% median decline. Finally, office properties received the most relief with 11.33% average decline and a 5.2% median reduction in assessments.
The Assessor results, of course, are only the first step in the process. What happens through the Board of Review will be what is of most interest. As that data becomes available, we will keep you posted.
