January 1, 2009
By: Martin J. Hutt
Lerch, Early & Brewer's Legal Update
Many of you may soon receive a Notice of Reassessment from the Maryland State Department of Assessments & Taxation (“Department”) advising you that the full cash value of your home or business property will be significantly increased over the next three years. The Department reassesses approximately one-third of Montgomery County each year. The Notices of Reassessment (the “Notice”) mailed out during December - February provide for an appeal period. The Notice will reflect your property’s full cash value for the years 2009, 2010 and 2011. The full increase in value will be phased in over the three year period.
If you believe the proposed full cash value for your property is too high, there is a statutory appeal process. Your appeal must be filed with the Department within the appeal period stated on your Notice. The back of the Notice provides you with the information needed to file your appeal in a timely fashion. Unless your property or its improvements have unique physical characteristics, we advise against checking the box requesting the Assessor to come to your property. We recommend meeting in the Assessor’s Office. When you file your appeal, you should ask for a copy of the Assessor’s work sheet for your property, as well as a copy of the comparable sales data relied upon by the assessor.
The initial appeal hearing is with the Tax Assessor who did your assessment. At this hearing, the property owner presents his/her evidence of value. For residential properties, it could include your own comparable sales, or information correcting the information shown on the Assessor’s work sheet. For commercial properties, it could include information correcting what is shown on the Assessor’s worksheet relating to the rental income, expenses, and vacancy rate assigned by the Assessor. The Department subsequently sends out a Final Notice of Assessment that either affirms or reduces the property’s full cash value.
If you disagree with the Assessor’s Final Notice of Assessment, you may appeal that decision to the Montgomery County Property Assessment Tax Appeal Board (“Board”) within the appeal period noted on the Final Notice. The Board consists of three County residents appointed by the State. At this hearing, the property owner and the Assessor both submit their opinions of full cash value and supporting information and documentation. The decision of the Board subsequently may be appealed by either the property owner or the state to the Maryland Tax Court within the appeal period noted on the Board’s written decision.
The Maryland Tax Court holds a hearing presided over by an administrative judge or hearing examiner. At the Maryland Tax Court hearing, the burden of persuasion is on the party appealing the decision from the Board. The property owner can present evidence not previously presented to either the Assessor or the Board.
The decision of the Maryland Tax Court may be appealed to the Circuit Court for Montgomery County, Maryland within the appeal period noted on the written decision (usually 30 days from the date of the decision). This hearing is limited to the evidence presented before the Maryland Tax Court. The Circuit Court’s decision can be appealed to the Maryland Court of Special Appeals.
If you are considering appealing your Notice of Assessment for 2009, it is essential that you file your appeal within the appeal period. If you fail to make a timely appeal you will have no recourse in 2009, but may still file a timely appeal prior to January 1, 2010 to challenge the 2011 and 2012 full cash values.
As stated above, the appeal process takes time; it also requires the property owner to be prepared and able to provide supportive facts and/or comparable sales information to be successful. Marty Hutt and Steve Robins, partners in the firm, have successfully worked on both residential and commercial appeals. Either one will be happy to discuss with you any questions you might have about your property and the appeal process.
Marty Hutt is a principal in the fields of administrative proceedings and real estate development. He can be reached at 301-657-0170, or via email at mjhutt@lerchearly.com.
