Tax Appeal Appraisals

Tax Appeals

Most localities determine your property tax burden based on an ad valorem assessment of the property's value. Counties in the state preform reassessments of all of the properties to bring values to a uniform percentage of market value. Each county has a legal obligation to have all properties "assessed" in a uniform manner. The goal of the reassessment is to determine the current market value of property within each county.

County reassessments are performed in mass. The mass appraisal concept of valuation does not take into account the uniqueness of individual properties. This methodology is applied to residential, commercial, multi-family and industrial properties. Sometimes the assessor’s value is higher than market value, while in other cases the assessor’s value is lower than market value because the specific characteristics of a particular property may not be considered resulting in an inappropriate assessment.

In a perfect world, the assessed value of a particular property would match market value if that is the regulatory intent of the particular jurisdiction’s property assessment law. But assessors aren’t able to look at each property individually every year as an appraiser might for mortgage financing, sale, purchase, or other single-property appraisal assignments.

Property assessment is not an exact science -- especially for commercial property. Location is usually the foremost factor when evaluating commercial real estate. This can allow surrounding properties to affect your tax bill substantially, especially in rapidly developing areas. And mass assessments can be very questionable since they are wholly based on statistical analysis. Nevertheless, these adjustments can have a very real impact on the bottom line of a commercial property owner.

Property owners can appeal the county appraisal if one feels they are inaccurate. The burden of proof that an assessment is inaccurate is placed on the property owner. Put simply, the current tax assessment is presumed to be correct and the tax assessor need not put forth any proofs in support of his or her assessment. It is solely up to the Taxpayer to prove that the assessment is wrong.

The most important aspect of a tax appeal is obtaining a professional appraisal from an appraiser that demonstrates proven experience and expertise in tax appeal appraisals. A credible and reliable appraisal from a real estate appraisal firm that is renowned for honesty and integrity that produce proven appraisals that not only conform to accepted industry standards, but also to a strict code of ethics such as the one governing the actions of Appraisal Institute Designated members could provide the best opportunity for a property owner to increase the chances of a successful tax appeal.

We have a staff that includes four members affiliated with the Appraisal Institute (MAI designation). NMREC has over 35 years in tax assessment related work. We become actively involved at every step of the appraisal process from beginning to end. NMEC has demonstrated the knowledge, experience and professional judgment to be recognized as one of the leaders in tax consulting and tax appeal appraisals.

Appraisal and Consulting Services Include:
  • Commercial Mortgage Appraisals
  • Going Concern Appraisals
  • Appraisals for State and Federal Agencies
  • Tax Appeals
  • Appraisals for Litigation
  • Conservation Easements
  • Land Appraisals
  • Residential Appraisals