First things first, I am not a property tax accountant or lawyer, nor do I play one on TV. This is the reader’s digest version of the process, written for people who own property in Frederick, especially business and commercial owners!
Next, take a breath. An assessment notice does not automatically mean your property is “worth” that number in the real world. It means the State of Maryland is saying, in their professional opinion, they have determined a new assessed value they are going to use for tax purposes, that is unless you exercise your rights and challenge it.
If you disagree with the value, the key is simple: you need to know the deadline, and you need to be ready to put in some elbow grease to gather information. One thing to note for this process is that it is not enumerated with fees and barriers. Any property owner is given a fair chance and access to the process to attempt to make their case
Step 1: Know your deadline
If you are appealing a reassessment notice, you generally have 45 days from the date of the notice to file. The notice should outline this date for you!
There are also two other situations where appeals can happen:
• Petition for Review, This is typically used when an event occurs related to the property, such as damage, vacancies, or lower comparable sales and waiting the 2 years for the next assessment would be significantly impactful.
• Appeal Upon Purchase, if you bought the property and the transfer was recorded after January 1 but before July 1. This option generally gives you 60 days from the date of transfer to file. For this appeal, you will need to prepare a recent appraisal, closing statement, or comparable sales data that shows the property value is lower than the assessed value.
Before doing anything else, confirm what deadline applies to you. The fine folks at the Maryland Assessors’ Office are available by phone and are VERY helpful! Do not hesitate to contact them.
Step 2: Use SDAT to pull your property record and confirm the basics
SDAT is a state-sponsored site and it is the quickest way to pull the public data you need. For those that know my family, my father is an attorney and some of his best advice was always “Before you argue something, make sure the record is factually correct.”
Check items like owner name, property address, property use type, building size, land size, and sale history. These are critical to working through your findings of value vs the State’s. If a listed comparable sale was completely remodeled or renovated and its value is lower than your home that still have the kitchen from that 70’s Show – these are important details.
CLICK HERE FOR A STEP BY STEP GUIDE ON HOW TO USE SDAT TO PULL COMPS
Step 3: Understand what you are appealing and what comps actually mean
An appeal is not just “my taxes went up and I don’t like it.” An appeal is “the assessed value is not supported by market evidence for a property like mine because of these facts.”
Comparable properties should be similar in use, location, size, condition, and timing of sale. Also keep in mind other extraneous things that could impact value such as, noise or traffic generation users, adjacent developments, planned developments, rezonings, etc.
Step 4: Pull comps using the SDAT site
Search your property in SDAT, identify 5 to 10 peer properties, pull their records via SDAT’s links, and use your judgment to narrow down to your best 3 to 5 comps. For commercial properties, calculating price per square food can be a simple but effective way to show you did your homework! Also for commercial properties, a rent roll and comparable rental rates will be critical.
Step 5: File the appeal and pick your hearing format
Appeal options generally include written appeal, phone hearing, video hearing, or in-person hearing.
Step 6: First Appeal – Supervisor’s Level
This is the first stop and where most appeals are hopefully resolved.
- You’ll be provided with a meeting date at the local tax assessment office and a worksheet of comparable data being used by the assessor’s office.
- Review the worksheet provided and see if anything listed isn’t applicable or has extenuating circumstances that would make the value inappropriate or inapplicable.
- This is not a court of law. This is a short meeting to present your research and have a discussion regarding the data the state is using for their assessment.
- Following this meeting, you’ll receive notice if your assessed value is being adjusted. If you find that the value remains unsatisfactory, PTAAB is your next stop!
Step 7: Moving to PTAAB
PTAAB is a county-level board and may not be at the assessor’s office, but will still be located within Frederick County.
- The State will provide an Evidence Letter typically consisting of 5-8 properties that they have determined are the specific comparable properties.
- This is your chance to review and really dig into the details. At this stage, consider hiring a professional like an appraiser or lawyer.
- You will have to submit your findings prior to the hearing date, and as part of this, you may engage in conversations to reach a settlement. If settlement cannot be reached, the PTAAB hearing will be held. You will have a chance to discuss, answer questions, and make your “case” for your property value findings.
- The PTAAB will render a decision regarding their interpretation of the value. If you find that unsatisfactory, you have one final step remaining.
Step 8: Third (and final) Appeal – Maryland Tax Court
This is a much more formal process, and findings are binding by the Courts. Be ready for a battle, as this step requires legal and a lot of other resources.
Procedures before the Maryland Tax Court
Procedures before the Tax Court have been established by statute, regulation and judicial decision. Statutes are codified in the Tax-General Article of the Annotated Code of Maryland. Regulations are found in COMAR (Code of Maryland Regulations) Title 14, Subtitle 12. The Maryland Tax Court Rules of Procedure can be accessed in this website. In addition, a detailed narrative, with annotations, of the Procedures are also available.
Fees
There are no fees in the filing of an appeal before the Maryland Tax Court. There may be fees for the provision of transcripts and recorded tapes of a hearing. If a party is dissatisfied with the decision of the Maryland Tax Court, an appeal may be made to the Circuit Court. In that instance, the Circuit Court does impose a filing fee.
Hearings
Hearings are heard de novo, which means a fresh start. A new record is established at the Tax Court hearing. Although the MTC is headquartered in Baltimore, hearings are heard statewide. The Judges may travel to the various counties to hear real property valuation appeals.
About the Author:
Danny Severn, Warner Commercial
Danny is a Frederick local, with roots and family in Middletown. He works in commercial real estate. He manages development projects in Frederick, Montgomery, and Washington counties in Maryland, as well as Loudoun and Prince William counties in Virginia. He holds a Bachelor of Arts degree from York College and a Master of Science degree in Real Estate from the Edward St. John Real Estate Program at the Johns Hopkins Carey Business School. Danny is an active member (and former Board member) of the Rotary Club of Frederick, and also the current Board Chair of the Frederick County Chamber of Commerce.
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