Georgia - February 2010
In Georgia, the Board of Tax Assessor's Offices will be adjusting the 2010 tax value on several thousand properties as assessors review the real estate sales and foreclosure data. To preserve your rights to contest the market value of your property a Real Property Tax Return must be filed.
The property tax return process begins with the timely filing of a Real Property Tax Return. For the following counties, this occurs anytime between January 1 and March 1, 2010. Returns are not accepted via email or fax - no exceptions.
March 1 counties include:
Bibb, Butts, Chatham, Clarke, DeKalb, Gwinnett, Hall, & Newton
All other counties have an April 1 deadline.
If your value is not accepted, a Notice of Change in Assessment will be issued to you (scheduled mailing by mid April 2010). The notice allows you to appeal the value, which will result in a review process and possibly further into hearings.
December, 2009
Historic News for California Property Tax Assessments
The assessment of real property in California is guided by Proposition 13, which took effect in 1978. Upon a change in ownership or completion of construction, a base year value is assigned to a property. Thereafter, the annual increase in assessed value is determined by the California Consumer Price Index - but capped at 2%. Using Consumer Price Index numbers recently released by the government, the State Board of Equalization announced on November 30, 2009 that - for the first time since Proposition 13 was implemented – statutes dictate a deflationary economy to result in a negative .237 percent adjustment to the assessed value of real property as of January 1, 2010. The California State Board of Equalization notified County Assessors on December 14, 2009 that a negative .237 percent adjustment should be used for the 2010 real property assessment roll.
For property owners whose historical assessed value is below current market values, there will be a decline in the base property tax. However, for those property owners whose assessed value likely exceeds market value, an appeal of the assessment will be necessary.
The negative adjustment for calculation of the 2010 tax year real property assessments will place further stress on the budgets of cities and counties in California.
For more information, please contact either Alan Schultz at (415) 593-9005 or aschultz@paradigmtax.com, Ed Trudersheim at (858) 430-0373 or etrudersheim@paradigmtax.com, or Randy Burns at (415) 593-9005 or rburns@paradigmtax.com.
Source: http://www.boe.ca.gov/news/2009/119-09-Y.pdf
December, 2009
MIDOT’s filing of 10,000 property tax appeals by December 31st could result in a 100% increase for taxpayers
On Tuesday December 1, the Michigan Department of Treasury (“MIDOT”) informed the assessing community that it will file up to 10,000 real and personal property classification appeals with the Michigan Tax Tribunal by December 31, 2009. The appeals will request that real and personal property classified as industrial be reclassified as commercial. While in the past a few appeals may have been filed, the volume increased exponentially this year due to the Michigan Business Tax Industrial Personal Property Tax Credit and the millage reduction afforded industrial personal property. Changing personal property classification from industrial to commercial creates a tax increase of 100% or more. Property owners should take action immediately in order to protect their rights to the tax reduction intended by the Michigan legislature.
Click here for more information.
December, 2009
ALASKA
Jurisdiction: Alaska has 16 boroughs and 11 census areas. The assessment date is January 1.
Appeal Deadline: appeal deadlines are 30 days after the property tax statement is mailed for all municipal property tax assessments; however, the deadline for state assessed oil and gas tax assessments is 20 days. The statement mailing dates vary by jurisdiction as follows:
- Mid-January - Muni of Anchorage (Note: > 40% of the population for the state lives in or around Anchorage)
- January 29 – Fairbanks North Star Borough
- February 29 – Matanuska-Susitna Borough (known as Mat-Su) principal town is Wasilla
- March 1 – Kenai Peninsula Borough; Ketchikan Gateway Borough; North Slope Borough
- Mid-March – Juneau Borough
- March 31 – Kodiak Island Borough
These 8 boroughs cover most of Alaska’s populated area.
Information needed to file: Appeal must be filed in writing and must specify the grounds for appeal.
Note: Muni of Anchorage requires a $1,000 deposit filed with each appeal. The purpose of the deposit is to discourage filing appeals without merit. The deposit is refundable provided evidence is shown that the property owner/agent cooperated with the assessor during the appeal and/or attends the hearing.
For more information, please contact Patrick Howard by email at phoward@paradigmtax.com or by phone at (206) 241-2424 x 104.
OREGON
Appeal deadline: Dec 31
Important Reminders:
- To review – see the "Assessed Value" on tax bills, not the Real Market Value.
- To appeal – need BOPTA Agent’s Authorization or Magistrate authorization to attach with appeal filing
- Timing – due to holidays, we recommend appeals should be filed by the 15th.
For more information, contact Kevin Smith at either ksmith@paradigmtax.com or (415) 692-8513.
HAWAII
Jurisdiction: State of Hawaii
Appeal Deadline: Oahu Jan 15, Other Islands Apr 9
Important Reminders:
- Assessment Notices Mailed to Owner Oahu Dec 15 Other Islands Mar 15
- Information Needed to File: Pertinent information include tax map key, owner signature or Agent Authorization Letter and filing fee
- Additional Notes or Requirements: Property assessed at 100% of market value of fee simple interest.
For more information, please contact Andrew Furata at afurata@paradigmtax.com or (808) 541-9246.
December, 2009
California Tax Alert
IMPORTANT ALERT FOR ANY LEGAL ENTITY THAT OWNS REAL PROPERTY IN CALIFORNIA!
NEW MANDATORY SELF-REPORTING WITH PENALTIES EFFECTIVE JANUARY 1, 2010
California Senate Bill No. 816 has revised the reporting requirements that relate to the change of control or ownership of legal entities in California, and establishes significant penalties for non-compliance.
Click here for more information.
December, 2009
Historic News for California Property Tax Assessments
The assessment of real property in California is guided by Proposition 13, which took effect in 1978. Upon a change in ownership or completion of construction, a base year value is assigned to a property. Thereafter, the annual increase in assessed value is determined by the California Consumer Price Index - but capped at 2%. Using Consumer Price Index numbers recently released by the government, the Board of Equalization announced on November 30, 2009 that - for the first time since Proposition 13 was implemented - it expects a deflationary economy to result in a negative .237 percent adjustment to the assessed value of real property as of January 1, 2010.
For property owners whose historical assessed value is below current market values, there will be a decline in the base property tax. However, for those property owners whose assessed value likely exceeds market value, an appeal of the assessment will be necessary.
The negative adjustment for calculation of the 2010 tax year assessments will place further stress on the budgets of cities and counties in California. The official CPI factor is expected to be released in a letter to county assessors from the Board of Equalization in December.
Source: http://www.boe.ca.gov/news/2009/119-09-Y.pdf
December 1, 2009
The link below details all the new CA legislative changes for 2010. By far the most important is SB816 which imposes large penalties where there were none before. Please click the link below for details.
http://www.boe.ca.gov/proptaxes/pdf/lta09054.pdf
IMPORTANT ALERT FOR ANY LEGAL ENTITY THAT OWNS REAL PROPERTY IN CALIFORNIA! - November 9, 2009
California Senate Bill No. 816, has been signed into law and should dramatically change the reporting requirements that relate to the change of control of legal entities in California, and subject legal entities to very significant penalties.
Change in Control
In California, under the legendary Prop 13, property that is held by a legal entity (corporation, partnership, or LLC) is subject to re-assessment for property tax purposes when a new person or entity obtains control of the legal entity that owns the property. Control is defined as a greater than 50% interest in the legal entity. Since such changes in control are typically not subject to the public recording of documents, the county assessors and the State Board of Equalization (“SBE”) have relied on several means of detection, most prominent of which was the requirement that the legal entity file a Statement of Change in Control (form BOE-100-B) with the SBE within 45 days of such a control change.
Penalties for failure to make the 45 day filing deadline.
Prior to SB 816 there was no monetary penalty in place for failure to make the 45 day filing. There was only a 10% penalty applied if the legal entity failed to respond to a written request from the SBE or the County. The law carried no provision for failure to voluntarily file. If a 10% failure-to-respond penalty was imposed, it was abated if the statement was filed within 60 days of the Notice of Penalty. SB 816 has changed that.
Under 816, the 10% penalty will be imposed if the legal entity does not make the 45-day filing, regardless of whether a form was issued by the SBE or the County. The entity MUST now voluntarily file within 45 days!
If the penalty is imposed, the only avenue for abatement is application to the local county board of supervisors for the opportunity to prove that the failure to file was not willful.
Assessor provision of confidential information
There is also language in SB816 that requires cooperation between Assessor and other state and county agencies in the exchange of confidential information such as the investigation into Transfer Tax cases by a County Recorder. California cities and counties charge a Documentary Transfer Tax on the transfer of ownership of real property which is based on the “value” of the real property transferred. The new statute also has language that addresses the difference between “value” for Property Tax purposes and the “value” for Transfer Tax purposes.
Click here to read the PDF.
October, 2009
On October 30th, Governor Granholm issued Executive Order 2009-51 eliminating both the State Tax Commission and the State Assessors Board and instead creating the New State Tax Commission. For more information, click here to link to the Executive Order or contact Paradigm’s Michigan Managing Consultant, Bob Fuchs at bfuchs@paradigmtax.com or 810-844-0922.
Cook County (Chicago) - September 23, 2009
2009 Property Tax Recalibration Provides Unique Opportunities For Property Tax Savings
When the Cook County Board of Review last year passed Cook County Assessor Jim Houlihan’s bill authorizing a change in property tax assessment ratios, Chicago’s commercial property owners might have been pleasantly surprised to see that the bill contained a reduction in the assessment ratio used to calculate Cook County commercial property assessments.
Effective with the 2009 assessment, the ratio has been reduced from 38% in 2008 to 25% in 2009 on commercial properties, and from 36% in 2008 to 25% in 2009 for industrial properties. However, as 2009 assessments are being issued, it appears that the assessments of commercial and industrial properties are actually staying the same – and NOT being reduced as one would expect with a lower assessment ratio. At first glance, the appearance of both a ratio reduction and no increase in property assessment value represents good news to property owners, however, in the long term, the reality is that the new ratio will significantly increase the market value of the property.
Click here to read about the property tax implications of this important legislation.
Florida - June 8th, 2009
Florida Governor Charlie Crist enthusiastically signed House Bill 521 on June 4, 2009, a measure that will tip the scales of justice more in the direction of Florida property owners who challenge their property tax valuations. The goal of this legislation is to level the playing field and to ensure that the process for challenging assessment valuations is fair.
Prior to this legislation, Florida law left the burden of proof to the taxpayer and assumed that the Property Appraiser was correct. Under HB 521, the evidence is weighed based on merit. The person with the more convincing arguments and evidence will be awarded the decision (reduce the assessment or uphold the assessment). The burden of proof has been changed from “clear and convincing” to a “preponderance of evidence”.
This law will not affect pending 2008 property tax appeals but will be in effect for the 2009 tax year. Proposed tax notices (TRIM notices) are mailed yearly to Florida property owners in August. Assessment appeals must be filed within 25 days from the date of mailing of the TRIM notice.
Please call Mary Bonnell or Manny Ramos at 954-653-1496 to discuss further or to have your property reviewed.
Deceptively Simple. Endlessly Complicated. - May 6, 2009
Arnold Palmer once said that golf was "deceptively simple and endlessly complicated."
The same can be said for state and local taxation.
New Penalty in Alabama.
Effective March 24, 2009, Alabama is imposing a new failure to timely pay penalty. The new penalty applies to any tax amount that was required to be shown on any tax return, if the tax remains unpaid after 30 calendar days from the date the department notifies the taxpayer of the unpaid amount (Alabama Act 2009-144).
According to the Alabama Department of Revenue (ADOR), the most common situations where the new penalty would be imposed are tax audits or tax return adjustments. The new late payment penalty would apply to a tax liability determined during an audit or following the adjustment of a taxpayer's return, if the tax remains unpaid for over 30 days after the taxpayer receives notice that the tax is due.
Application to Annual Returns
For annual returns with unpaid tax amounts, the new late payment penalty is calculated at one percent of the amount of tax due per month, or fraction of a month, that the tax remains unpaid. The failure to pay penalty cannot exceed 25 percent of the total amount of tax determined to be due.
For more information about Alabama's tax penalties, go to http://www.revenue.alabama.gov/prdocs/New%20Payment%20Penalty.pdf
Alabama Amnesty: Time is Running Out!!
Time is running out for delinquent taxpayers in Alabama to take advantage of Operation Clean Slate - Alabama's tax amnesty program. The program began Feb. 1 and will end May 15, 2009.
As stated in a News Release on April 22, 2009, individuals and businesses that voluntarily come forward and file past-due returns or amend their returns to properly report their Alabama tax liabilities will not face penalties or prosecution. This program, however, is not available to persons who are already under investigation by the Alabama Department of Revenue (ADOR) or who have been contacted by the ADOR regarding their proper tax liability.
Operation Clean Slate is available to almost all taxpayers and for all tax types. The program applies to individual and corporate income taxes, business privilege tax, and if unregistered with the DOR, sales and use taxes.
Individuals and businesses wanting to take advantage of this program can send their delinquent or amended tax returns to:
Alabama Department of Revenue, P.O. Box 327010, Montgomery, AL 36132-7070.
If you have any questions, you can access the Operation Clean Slate website at: www.revenue.alabama.gov/cleanslate.html, or call 866-326-6755 or 334-242-1055.
Do You Qualify? Should You Take Advantage of Amnesty?
Tax Amnesty Alert
Tax amnesty is a limited-time opportunity for a specified group of taxpayers to pay a defined amount, in exchange for forgiveness of a tax liability (including interest and penalties) relating to a previous tax period or periods and without fear of criminal prosecution. In some cases, legislation extending amnesty also imposes harsher penalties on those who are eligible for amnesty but do not take it. State tax amnesty programs have been around for many years, but more states have used them recently due to shrinking state tax collections.
The following states have tax amnesty programs that are either currently in effect or will be in the near future: Alabama, Arizona, Connecticut, Louisiana, Massachusetts, New Jersey, Virginia. For more specific information on each state’s amnesty program, click here.
Still Growing - Even Through a Down Economy
As the fastest growing tax consulting firm in the nation, Paradigm Tax Group continues to expand. Even in a down economy.
Since our founding in 2004 as the former national property tax practice of KPMG, we have grown from a staff of less than fifty tax professionals to over one hundred. Our flexible, entrepreneurial philosophy combined with a customer list that is second to none and the results we consistently achieve, make PTG the place where the industry’s most talented individuals want to work. Now no longer just the home of KPMG’s most talented former consultants, we have also added some of the most respected, key tax specialists and consultants from all of the big 4 accounting firms and some of the leading local and regional boutiques.
Here is a list of those professionals joining us in just the past three months:
- John Boyle – San Diego
- Todd Tessier - Atlanta
- Yvonne Zuchowski -Cleveland
- Scot Casto - Washington DC
- Roberta Fausey –Phoenix
- Mike Lee – Phoenix
- Brenda Brown -Atlanta
- Mike Albright -Chicago
- Tad Berry – St. Louis
- Bill O’Quinn -Dallas
- Debbie Pellegrino -Chicago
- Megan Beare –Detroit
Arizona
New Private Taxpayer Ruling holds that property owners and managers in Arizona may be liable for sales tax when arranging or organizing build outs or tenant improvements.
In a private letter ruling issued on July 8, 2008 but only recently made public, the Arizona Department of Revenue ruled that a property manager/owner who supervised or coordinated modifications to real property may be subject to the state sales tax (transaction privilege tax) as a construction contractor. Since most commercial property managers arrange for building repairs or building modifications for their tenants rather than having tenants contract directly with construction contractors, according to the Arizona Department of Revenue, property managers may be subject to sales tax as construction contractors
For more information, click here.
Massachusetts Appeal Deadline
February 2, 2009 is the last date to file FY 2009 real estate appeals in quarterly billed communities. FY 2009 3rd quarter tax bills are currently being issued for the February 2nd due date/appeal deadline. These are the first actual, appealed bills for most properties. Timely payment of the tax as assessed is critical to preserve appeal rights.
FY 2009 assessments reflect 100% of Fair Market Value of January 1, 2008. Massachusetts jurisdictions are allowed to adjust values between triennial community-wide revaluations. Since several Massachusetts jurisdictions may be inclined to follow politically motivated strategies to reduce 2009 residential values, a potential increase in taxes assessed to the commercial/industrial base should be protected against, especially in communities that have split tax rates. For more information, or to ensure your 2009 property tax assessment is being fairly assessed, please contact Rob McNamara, Managing Consultant of Paradigm Tax Group’s Boston office at 617-948-2533 or by email at rmcnamara@paradigmtax.com.
CA Business Property Audits - January 1, 2009
Effective January 1, 2009, Assembly Bill 550 amended Revenue and Taxation Code 469’s mandatory audit. The bill deletes the requirement that an assessor must audit every four years taxpayers that own, claim, possess, or control local assessable trade fixtures and business tangible personal property with a full value of at least $400,000. For complete details on the bill, click here.
North Carolina - December 3rd, 2008
Mecklenburg County (Charlotte)
At yesterday’s December 2nd meeting, Mecklenburg County Commissioners decided to delay the scheduled 2009 revaluation until 2010. However, while delaying the revaluation, commissioners also pledged to make future property assessments more frequently – as often as every two years. Until now, Mecklenburg County has revalued once every eight years with the most recent being in 2003. Mecklenburg was one of 26 N.C. counties scheduled to revalue in 2009 and it appears to be the only one to have delayed the process. For more information on how this change will impact North Carolina property values, please contact Clifton Woodman at 678-954-6009 or by email at cwoodman@paradigmtax.com.
Maryland – November 2008
Important deadlines are fast approaching! They include:
December 31, 2008 – This is the last date to file real estate tax appeals for those properties that are not scheduled for reassessment this year. For more information, click here.
February 12, 2009 – This is the last date to file real estate tax appeals for properties that are being reassessed for the 2009 – 2011 triennial. These assessments may not reflect the decline in value that has occurred since the last time your property was reassessed in 2006 for the following reasons … Click here for more information.
California – November 2008
The annual 2008 appeal deadline is November 30, 2008
For a summary of California’s 2008 legislation affecting property taxes, click here. All bills will become effective January 1, 2009.
For details on California’s November 12 Letter to County Assessors regarding Notice of Proposed Escape Assessment, click here.
Iowa
In 2007 the Iowa Legislature created a new 3-member Property Assessment Appeal Board to hear challenges from the local county board of reviews. The PAAB was established to speed up the overall appeal process and set fair and equitable values on all property that is appealed to them. Parties may still seek judicial review at the District Court, however doing so would forego their right to file with the PAAB. Alternatively, if a party elects to file with the PAAB, any subsequent appeal to the District Court would be limited to errors of law.
Click here for more information.
North Carolina - November 2008
Mecklenburg County, NC (Charlotte)
With North Carolina’s reappraisal cycle taking place only once every eight years, Mecklenburg County has not issued revaluation notices since 2003. Although scheduled to reappraise in 2009, County Commissioners are scheduled to vote December 2nd on whether or not to delay the project. While at Paradigm, we have enjoyed significant success in reducing property valuations in “off years”, changes in valuation generally take place in the reappraisal year making the decision to delay or not extremely important to Mecklenburg County property owners, especially in today’s economic climate. With the likelihood of large valuation increases high, Paradigm will update our web site with relevant new information and details following the Commissioners meeting. To stay current on this issue, contact Clifton Woodman at cwoodman@paradigmtax.com or call 678.954.6009.
Indiana - November 2008
Marion County (Indianapolis) to Send "Provisional Tax Bills"
PTG has learned that Marion County has not finalized values for March 1, 2007 and has decided to send “provisional” property tax bills. The provisional property tax bills will likely be mailed the weekend of November 22nd and will likely be due December 16. Provisional bills are authorized under Indiana Code 6-1.1-22.5.
Our understanding, from numerous discussions with the Marion County Treasurer’s Office, is that the amount of taxes on the provisional bills will be based on 50% of the amount of taxes payable in 2007. A reconciling statement for the remaining taxes will be sent around the spring of 2009.
Provisional bills DO NOT trigger the deadline for filing an appeal on real property assessments. Rather, the reconciling statement that is scheduled to be sent in early 2009 for the March 1, 2007 assessment will be the trigger for filing an appeal.
Provisional bills cause a variety of issues for taxpayers, especially those who have tenant bill back arrangements or significant changes to their property for March 1, 2007. If you have questions about your specific situation, please feel free to contact Richard Archer, Managing Consultant of our Indianapolis Office. Richard can be reached by telephone at 317-417-4650 or by email at rarcher@paradgimtax.com.
Indiana - November 2008
Elimination of Township Assessors
The recent election in Indiana saw the demise of most of the remaining township assessors. You may recall that during this past year’s legislative session, all townships with less than 15,000 parcels were eliminated and their duties transferred to the county assessor. The legislation also called for the remaining 43 assessor’s jobs to be voted on by referendum in the November election. Only 13 assessors survived the referendum. For more information, click here.
Connecticut - October 2008
Connecticut Personal Property Declarations are due November 3, 2008. Now is the time for careful review of your records for all possible exemptions. Manufacturing and biotechnology equipment may be eligible for tax relief that can result in a 60% offset of the tax on qualified assets. Paradigm can assist you with a strategic review and return preparation to capture these savings. Recent recycling equipment purchases may also benefit from new regulations for reduced tax. Act now to avoid Connecticut’s 25% penalty on late or incomplete returns.
To discuss tax savings strategies and the Connecticut filing process, contact Rob McNamara at 617-948-2533 or at rmcnamara@paradigmtax.com.
Pennsylvania - September 2008
Since the vast majority of Pennsylvania's 67 counties have not been reassessed in more than 15 years, most Pennsylvania real estate tax bills have shown no assessed value change since the county's last reassessment. However, what most tax payers are not aware of is that while the value reflected on their tax bills have not changed, the assessed market value actually has changed. Click here for more information.
Florida - August 2008
Higher fuel costs, higher food costs, insurance premium increases, and dramatic increases in property taxes coupled with stagnant income have left Floridians struggling to make ends meet. And with property tax levies having doubled over the past few years from $15 Billion in 2000 to $30 Billion in 2006, Floridians have demanded relief.
As a result, in a state referendum on January 29, 2008, Florida voters approved a constitutional amendment known as Amendment One. The amendment provides a tangible personal property exemption of $25,000 and a 10% annual cap on valuation increases which will go into effect on January 1, 2009. For more information, click here.
Washington, DC - 2008
The District of Columbia’s Office of Tax & Revenue has indicated a fundamental change in its enforcement policies for income & expense questionnaire compliance. DC law has historically stipulated a 10% penalty for non-compliance with the annual 1 April deadline. However, in practice taxpayers previously only received non-monetary penalties. These penalties including the non-use of actual information during assessment appeal. While that standard will remain in place, indicators are that the DC OTR will begin to levy the 10% penalty as well. Taxpayers who either (a) did not file by the 1 April 2008 deadline, (b) filed an incomplete document, (c) utilized any form besides that provided by the DC OTR, or (d) failed to provide a unique document for each tax parcel should take immediate action to remedy this non-compliance.
PTG can help! Please contact Scot Casto either via email at scasto@paradigmtax.com or phone at 703-877-0783 for additional details.
Chicago, IL (Cook County) - July 2008
How many times have you heard, "You need an attorney to appeal taxes in Cook County"? Paradigm Tax Group (PTG) has successfully represented properties throughout Cook County for over 12 years and our track record over this time is proof that this statement simply isn't true.
If you have either never appealed your Cook County real estate assessment, or you have used an attorney in the past, we encourage you to ask: Why use Paradigm instead of an attorney?
- Most assessment appeals are valuation issues, not legal issues
- PTG takes advantage of a Re-Review step that attorneys are not incented to use
- PTG is more cost-effective charging a contingent fee for only the first year of savings (in most cases)
- PTG clients can usually recognize their tax savings within months, rather than years
- PTG's tax savings approach is far less adversarial than most law firms
- PTG is incented to achieve bigger savings, much faster than most attorney firms
For more information, click
here.
Michigan - July 2008
Thanks to a reduced millage rate and a 35% refundable Michigan Business Tax Credit, Michigan taxpayers have discovered that classification matters. In fact, personal property classified as industrial receives an average 50% tax break when compared to the tax on commercial personal property. Prior to 2006 there was no difference in the net tax paid on industrial and commercial personal property, but for 2008 the legislature raised the stakes and passed a huge tax reduction for industrial personal property. To see how this will impact your Michigan facility, read more by clicking here.
California - 06/20/2008
As the downturn continues, many institutional real estate companies including REITs are coming under increasing pressure from shareholders to achieve the returns promised on large property acquisitions that have been consummated over the past several years. With most commercial owners choosing not to market their properties, there is little relevant direct market evidence of diminution in value. This absence of solid anecdotal market evidence creates an especially difficult environment in which to appeal property taxes and instead leads to the continuation of properties being assessed at their original Proposition 13 base year acquisition values trended upward annually, by the 2% California CPI . Despite this, PTG's California property tax team can often draw conclusions that there has been a significant deterioration in the financial performance of many office and retail properties in various markets where there are not yet sufficient open market sales indicating declining values. Click here for the complete article.
Pennsylvania – 06/15/2008
The State Tax Equalization Board has released the Common Level Ratios which will apply to property tax assessments for tax year 2009. This annual ratio change is, in essence, a revaluation of all properties in the state. Professionals from Paradigm's Philadelphia office are prepared to perform a complimentary review of your assessment and related market value in order to determine if it is fair and equitable given the recent developments in most real estate sectors. Deadlines to appeal these assessments are August 1, 2008 or September 1, 2008 depending on class of county in which the property is located. For more information, please contact Jack Nash, Managing Consultant at (610) 409-9835 or email at jnash@paradigmtax.com.
Ohio – 05/09/2008
Utilizing the informal
appeal process to reduce costs for our REIT
clients’ Ohio properties
may be an excellent alternative to starting
the process more formally at the Board of Revision.
Click here to view the article
Texas – 05/08/2008
Most all Texas Assessors
define market value to be what a willing
buyer would acquire a property from a willing
seller for. It
is not surprising, then, when a property transacts,
the following year assessed value is at or
near the purchase price. Most property
owners and Texas consultants determine nothing
can be done to lower their tax burden because
this is what was paid.
Texas properties are
supposed to be assessed in a fee simple estate. Thus, a property
must be valued as of the annual lien date of
January 1. Most often, a purchase price
is a result of “blue sky” projections
resulting in a transaction more reflective of
a leased fee estate. Paradigm’s Texas
practice has been very successful in pursuing
reductions on average 25% below recent acquisition
prices using fee simple principles along with
equity. Contact Matt Fossey, Managing Consultant,
at (214) 635-4872 or mfossey@paradigmtax.com for
more information.
Fulton
County, Georgia – 04/20/2008
Following up on our news
bulletin dated 4/3/2008, all Fulton County,
Georgia reassessment notices have been mailed.
The appeal deadline is May 28, 2008. For a
review of your new assessment please contact Oscar
Diaz, Director or Clifton
Woodman, Managing
Consultant both of the firm’s Atlanta
office.
Marion County (Indianapolis)
Update – 04/18/2008
Taxpayers owning property
in Marion County, Indiana will finally receive
their final installment of taxes that were
supposed to be due in 2007. These tax bills,
referred to as “reconciling
statements” will likely be mailed in
June with a July due date yet to be determined.
The delay in finalizing
2007 taxes was caused after The Department
of Local Government Finance determined that
a large percentage of commercial and industrial
property assessments were not trended as required
by Indiana Law. Click on the following link
to view the DLGF’s
order: http://www.in.gov/dlgf/retrending/Marion_County_Order.pdf
According
to Tim Evans’ article Reassessment
Nails Business Properties that
appeared in the Indianapolis Star on March
26, 2008, Commercial property assessments increased
32% and industrial property assessments increased
by 35%.
The deadline to appeal
these assessments will be 45 days from the date
the taxpayer is officially notified of the new
value. Paradigm Tax
Group’s Indianapolis office stands ready
to review the accuracy of assessments and appeal
them if necessary. For more information please
contact Steve Newman at 317-536-5183 or by email
at snewman@paradigmtax.com.
You may also contact Richard Archer at 317-250-7768
or by email at rarcher@paradigmtax.com.
National – 04/03/08
Paradigm Tax Group’s
local offices constantly monitor legislative
and reassessment issues. Current pressing
issues for taxpayers are as follows:
- California is currently
open for proactive negotiations with the
assessors regarding this year’s assessed
values.
- Marion County (Indianapolis
IN), values have increase 32-35% (apartments
as high as 70%). The reassessment was ordered
last year by Governor Daniels and performed
by county officials and a private contractor. Value
notices are due to taxpayers at this time.
(see related Industry News on our website)
- Fulton County (Atlanta,
GA), will be publishing new commercial
property tax notices within the next three
to four weeks. Tax assessments
are expected to increase up to 40%.
Please contact any of our California offices,
our Indianapolis office or our Atlanta office
for more information on these or any other
property tax issue you may want to discuss.
Indiana – 04/03/08
The recent reassessment
in Marion County, Indiana has resulted in
a 32% to 35% increase on commercial and industrial
properties located within the county. Please
refer to the attached
article for more information from indystar.com. For
more information and how this may impact your
property taxes, please contact Richard Archer
of PTG’s Indianapolis office at (317)
417-4650 or rarcher@paradigmtax.com.
Click here to view the article
Indiana – March
2008
Indiana Governor
Signs Off On Significant Property Tax Reform
Governor Mitch Daniels signed into law House
Bill 1001 which included numerous property
tax reform provisions. Among those:
- Elimination of the state property tax replacement
credit beginning with taxes payable in 2009;
- Eliminated inventory
from the definition of personal property
thereby eliminating he requirement to report
and deduct inventory values from the annual
personal property tax filing;
- Makes various changes in the appeal process;
- Caps property taxes in most counties beginning
with taxes payable in 2009 at:
- 1.5% for homesteads;
- 2.5% for residential property;
- 3.5% for non-residential real property
and personal property.
- Caps property taxes in most counties beginning
with taxes payable in 2010 at:
- 1.0% for homesteads;
- 2.0% for residential property;
- 3.0% for non-residential real property
and personal property.
- Allows a county council to adopt an ordinance
allowing a taxpayer to make installment payments
for property taxes due as a result of a reconciling
tax statement;
- In order to fund certain property tax reforms,
the sales and use tax rate was increased
from 6% to 7% on April 1, 2008;
- Eliminates township assessors as of July
1, 2008 in townships with less than 15,000
parcels and transfers their duties to the
county assessor;
- Requires a referendum in the 2008 general
election in townships with greater than 15,000
for the elimination or retention of the township
assessor;
- Extended the deadline to file an appeal
of a March 1, 2007 real property assessment
to the later of July 1, 2008 or 45 days from
the date a notice of assessment is sent.
You may direct any questions
related to Indiana property tax reforms to Richard
Archer in Paradigm’s
Indianapolis office. Richard may be contacted
at 317-250-7768 or by email at rarcher@paradigmtax.com.
California – 08/26/07
CALIFORNIA ASSESSMENT
APPEAL DEADLINES LOOMING – SEPTEMBER
15TH AND NOVEMBER 30TH..
In California, the
lien (assessment) date is January 1. The “Prop 13” real
property assessed values, and the business
personal property assessed values are determined
as of that date. The property tax fiscal (payment)
year begins 6 months later on July 1 and runs
until the following June 30. The fiscal year
is referred to by the first half designation.
The 2007/08 tax year is commonly called the “2007” year.
With only a very few unique exceptions, the
annual Prop 13 real property and business personal
property assessments are only subject to appeal
during a designated period. Annually, for all
58 counties, the annual regular assessment
roll appeal period begins January 2nd. The
appeal periods may end on either September
15th, or November 30th due to statutory notice
requirements committed to by the individual
counties. The county-by-county final deadlines
may change from year to year. Attached, please
find the county-by-county appeals deadline
schedule as published by the California State
Board of Equalization, the body that oversees
the enforcement of property tax legislation.
For a schedule of the 2007 individual appeal
deadlines, by county, see the following: www.boe.ca.gov/proptaxes/proptax.htm.
California – 06/27/07
In California, the
lien (assessment) date is January 1. The "Prop 13" real property assessed
values, and the business personal property
assessed values are determined as of that date.
The property tax fiscal (payment) year begins
6 months later on July 1 and runs until the
following June 30. The fiscal year is referred
to by the first half designation. The 2006/07
tax year is commonly called the "2006" year.
With only a very few unique exceptions, the
annual Prop 13 real property and business personal
property assessments are only subject to appeal
during a designated period. Annually, for all
58 counties, the annual regular assessment
roll appeal period begins January 2nd. The
appeal periods may end on either September
15th, or November 30th due to statutory notice
requirements committed to by the individual
counties. The county-by-county final deadlines
may change from year to year. Attached, please
find the county-by-county appeals deadline
schedule as published by the California State
Board of Equalization, the body that oversees
the enforcement of property tax legislation.
More information can be found at www.boe.ca.gov/proptaxes/proptax.htm.
Click
here to download article
Michigan – 05/29/06
Act 174 of 2006 was
signed by the governor into law on May 29,
2006. This new Act
amends filing procedures and deadlines for
real and personal property tax appeals. The
following changes will commence after December
31, 2006:
- Assessed valuation and exempt status for
real property classified as commercial, industrial
or developmental may be appealed directly
to the Michigan Tax Tribunal without first
filing a protest to the local board of review
where the property is located.
- Assessed valuation and exempt status for
personal property classified as commercial,
industrial, or utility may be appealed directly
to the Michigan Tax Tribunal without filing
a protest to the local board of review where
the property is located, if a personal property
tax statement was filed before the commencement
of the board of review, which may vary from
jurisdiction to jurisdiction.
- A Petition to the Michigan Tax Tribunal
is now filed timely, if postmarked by a U.
S. Postal Service, delivered in person, or
a designated delivery service, on or before
the filing deadline expires.
- The filing deadline
for commercial, industrial, developmental,
or utility real and personal property will
be May 31 of the tax year.
Texas – 01/15/06
The Texas Supreme Court ruled November 22 that
local property taxes used to pay for public
schools amount to an unconstitutional statewide
tax and has given the state until June 1
to fix the system. Texas' highest civil court
agreed 7-1 with one of three arguments brought
against the state by hundreds of school districts,
but found that overall school funding is
adequate and that poor districts have equal
access to facilities funding. Paradigm Tax
Group will update this section with further
information as it becomes available.
