| The 2009 property tax appeal frenzy is well | | | | However, thanks to the chaos in the capital markets |
| underway. It's sure to be one of busiest years in | | | | and the resulting credit freeze, transactions are scarce, |
| recent memory. There's also no reason why it | | | | to say the least. An excerpt from a recent CoStar |
| shouldn't prove to be one of the most productive | | | | article reads: |
| years in a long time. However, I think that there may | | | | "with the capital markets in disarray and few |
| be some misconceptions about what to expect and, | | | | comparable transactions upon which to build a |
| perhaps as important, what not to expect. | | | | foundation, buyers and sellers can't agree on pricing. |
| I think we all agree that values have declined. It's close | | | | In fact, one widely watched transaction-based index |
| to impossible to argue otherwise. That said, we are not | | | | published at the MIT Center for Real Estate couldn't |
| going to find ourselves "shooting fish in a barrel". | | | | even produce a retail index for the fourth quarter due |
| There's more to it than simply raising our arms and | | | | to the dearth of transactions. The overall sample size |
| saying, "we all read the papers, we all watch the | | | | for various other property markets was "scarily low," |
| news..." Of course values have declined in virtually | | | | acknowledged David Geltner, director of research at |
| every sector. Companies and entire industries are | | | | the MIT Center for Real Estate. " |
| facing double-digit loses. Closures and layoffs are | | | | So, although we may all agree that values have |
| rampant. Need I go on? | | | | declined, proving values for the 2009 tax year |
| So, why isn't it as simple as filing an appeal and waiting | | | | becomes more challenging due to the lack of reliable |
| for a refund check? | | | | market information. |
| Quantification is king! | | | | 2009 presents a great opportunity for companies to |
| Probably the most important issue that must be taken | | | | significantly reduce their property tax liabilities. |
| into consideration for tax appeals in 2009 can be | | | | However, It is not realistic to think that appeals will be a |
| summed up in one word: | | | | walk in the park simply because of the current |
| PROOF | | | | economic conditions. If anything, 2009 tax appeals will |
| Taxpayers carry the burden of proof in a tax appeal. | | | | require more work, diligence and creativity than in the |
| They must prove that the assessment is excessive | | | | past. The good news is that it will be worth it. |
| and in order to do that they must present evidence. | | | | |