Property Tax Appeals Federal Appraisal provides complete property tax appeals services.  We provide:  Assessment review and strategy/goal planning - Is a property over-assessed, under-assessed, or fairly assessed?  What should the target reduction or increase be?  Is the likely reduction or increase adequate given the risks, timing, and costs? Compliance & document submissions and preparation Pre-Assessment presentations, submissions, meetings, and negotiations Representation/advocacy or appraisal services Informal appeal services Representation/advocacy or appraisal services Formal appeal services Process management and/or appraisal services and expert testimony Background Real and personal property  is taxed by state and local jurisdictions, based on the market value of the property. This kind of tax is known as an "Ad Valorem" tax, meaning "of value" or based on value as opposed to income or sales.  The process begins with an assessor's estimate of the market value of the property.  On occasions, the assessors use information the property owners must file with the assessors.  Often the assessor's estimate of market value is converted to an assessed value, before the tax rate is applied. The assessed value is a percentage of market value.  Property owners sometimes believe that they are under assessed because they fail to convert their assessed values back into market values in their assessment review process.   Real property taxes are levied in all 50 states and are common around the world.  Personal property is taxed in about 40 states.  They represent one of the major sources of funding for schools and local governments. The Appeal Process The property tax appeal process, unlike the income and sales tax reporting process, is reactive.  In income and sales tax reporting, the taxpayers calculate their taxes and the taxing jurisdiction deciding whether it wishes to dispute it.  In the property tax process, the assessor decides what the  property owner should pay and the property owner must then react and decide whether to dispute the assessment.  In most cases the process relieves the property owner of the time consuming and costly reporting burden because the assessors estimate an appropriate market value and assessment; however, for all high value properties, say $3,000,000 or higher, and all special purpose properties and all properties experiencing significant changes in value, prudent management dictates that the assessment must be reviewed by the property owner, whenever an assessment is established.  Many property owners fail to complete this essential activity.  The failure to appeal an assessment can result in the substantial overpayment of taxes. The appeal process may begin with properly prepared pre-assessment submissions, when required or when advantageous and permissible. Many jurisdictions allow meetings with the assessors prior to the establishment of assessed values.  This is a cost-effective way to secure a reasonable assessment.  The counsel of a property tax expert is strongly recommended for this process.  Once the assessment is establish, prudent managers should avail themselves of the informal and non-legal venues that some jurisdictions provide to tax payers.   Again, the counsel of a property tax expert is strongly recommended for this process.   Lastly, when the other venues prove unable to provide relief, a taxpayer can pursue their appeal in court or other formal, legal venue as per the taxing jurisdiction procedure.  The counsel of an attorney, an appraiser and a property tax expert is strongly recommended. Also see our Property Taxes and our Property Tax Management pages.

Approaches for Power Plants The Selection of Approaches to Value, for Power Plants This survey was produced by Federal Appraisal & Consulting LLC, in conjunction with MR Valuation Consulting LLC and the Public Utility Section of the International Association of Assessing Officers. View survey results in tabular form View survey results in graphical form

USPAP Compliant USPAP Services Provided by Federal Appraisal Federal Appraisal LLC provides all types of USPAP appraisal and appraisal consulting services. Full Narratives and Self-Contained Reports Executive Summaries and Summary Reports Letter Appraisals and Restricted Use Reports Complete Analysis Appraisals Agreed-upon Procedure and Analysis Appraisals, Client-Defined Scopes of Services Appraisals, Limited Appraisals, Appraisals prepared using the Departure Provision. Go to the Descriptions of Federal Appraisal LLC’s USPAP Services page for explanations of this services Additionally, Federal Appraisal LLC provides a full array of non-USPAP appraisal and consulting services.  Additionally, Federal Appraisal LLC provides a full array of non-USPAP appraisal and consulting services.  Background on USPAP USPAP contains the recognized standards of practice for real estate, personal property and business appraisal. Nearly all conventional appraisal services are subject to the Uniform Standards of Professional Appraisal Practice (USPAP).  When the law requires a USPAP appraisal, the client must have a USPAP compliant appraisal, which is certified by the state licensed or certified appraiser.  Full analysis, complete narrative appraisals for mortgage underwriting purposes are the most common type of USPAP appraisal for commercial property types (full form reports, for one to four family property types).  It should be noted, however, that USPAP prescribes a number of important appraisal services beyond full analysis, complete narrative appraisal. Furthermore, when the law does not require a USPAP appraisal, clients have still more options. Knowing when a USPAP appraisal service is needed and when it is not, and what type of USPAP appraisal services to order can save clients considerably on fees and on opportunity costs from inappropriate business decisions based on ill fitting appraisal and consulting services. What Is USPAP? The Uniform Standards of Professional Appraisal Practice (USPAP) prescribe the minimum ethics and standards required of an appraiser.  It was enacted in 1989 with the enactment of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) The following are links to the agencies and organizations that promulgate or help promulgate USPAP. Uniform Standards of Professional Appraisal Practice (USPAP) The Appraisal Subcommittee The Appraisal Foundation The Appraisal Institute USPAP Applicability USPAP applies to federally regulated transactions, mainly federally insured banks.  It also applies to other important but less common situations, such as many state courts that hear property tax appeals. Importantly, it does not apply to all federal and state agencies.  USPAP does not apply to appraisals prepared for the IRS and for tax related purposes, unless that type of service is negotiated between the client in the appraiser. Organizations that are Subject to USPAPOrganizations that are Not Subject to USPAP*Office of the Controller of Currency Office of Thrift Supervision Federally Insured BanksInternal Revenue Service Securities and Exchange Commission* Note:  Even when an agency is not required to employ USPAP, in most cases we highly recommend its use. Common USPAP Fallacies There are perhaps few other documents in the business world that have been as misunderstood and that have caused as much consternation as USPAP has.  Federal Appraisal LLC has listed the most common fallacies concerning USPAP, because the professionals at Federal Appraisal believe that a clearer understanding of USPAP, by both the users of appraisals and the appraisers themselves, could save the real estate community hundreds of millions of dollars in appraisal fees and investment opportunity costs.

Appraisal Reporting Services Depending on our clients’ needs, Federal Appraisal provides its deliverables in various appraisal reporting formats.  Our standards permit several standard formats.  Federal Appraisal will assist the client in choosing the right format for them. USPAP Formats Real Estate Appraisal Full/Extensive Reporting Full Analysis Limited Analysis Summarized Reporting Full Analysis Limited Analysis Business Appraisal Full/Extensive Reporting Full Analysis Limited Analysis Summarized Reporting Full Analysis Limited Analysis Calculations Limited Analysis Personal Property Appraisal Full/Extensive Reporting Full Analysis Limited Analysis Summarized Reporting Full Analysis Limited Analysis Appraisal Review Full/Extensive Reporting Full Analysis Limited Analysis Summarized Reporting Full Analysis Limited Analysis Mass Appraisal Full/Extensive Reporting Full Analysis Limited Analysis Summarized Reporting Full Analysis Limited Analysis Yellowbook Standards URA Standards Market Value and Premises of Value Highest and Best Use Going Concern Orderly Liquidation Forced Liquidation Go Dark Scenario Market Value Fair Market Value Value in Use Many Others