Property Assessment

Local Government Services International

Local Government Services International (LGSI) provides professional property assessment consulting services to local governments worldwide.

LGSI assists national, state, regional, and local governments in achieving property tax administration program goals. Specialty areas include:

• Assessment program management
• Business process and flow analysis
• Conducting performance audits and measurements
• Enhanced public relations and outreach programs
• Evaluation and recommending best practices
• Expert witness testimony
• Management onboarding and staff development

We typically provide our services by working with:

• Government Ministries
• International development agencies
• International firms and organizations
• Municipal governments
• Oversight agencies
• Regional agencies
• State governments

For a list of current and previous clients click here.

Richard L. Sanderson, Senior Consultant
4305 Clagett Road
University Park, Maryland (MD) 20782-1140
Tel: 1+703-659-0772
E-mail: r.sanderson@localgsi.com

Another Way to Own Your Zip Code

In an earlier posting I encouraged real estate agents, brokers, and other real estate experts to follow Seth Godin’s advice that you must "own your zip code" by "hyperspecializing" or through "micro-specialization."

My earlier posting suggested that one way of owning your zip code is to you get a basic understanding of how property assessments and taxes work in your area and use it to help your clients.  This post goes further to say when and what you should focus on.

WHEN
Property assessors throughout the United States and Canada will typically be sending out notices of assessment during the period from January through March.  Tax laws in many states and provinces require that notices of assessment be mailed to property owners of record whenever a reassessment is performed and assessments change.  In most states and provinces the effective date of valuation for assessment purposes is December 31 or January 1, but assessment notices are generally sent after the effective date.

WHAT
The 2011 notices of assessment will state how the assessment for each property changed from 2010 to 2011 (or since the last reassessment date if annual assessments are not performed) and deadlines for filing assessment appeals.  It is very important that this information be emphasized to property owners.  So don't shrug your shoulders and think that you'll be redundant if you post an article in your newsletter or to your blog, send an e-mail, or tweet about assessment notices being mailed or appeal deadlines approaching.

In addition to emphasizing that 2011 notices of assessment were mailed (ask your local assessor to verify when the notices were mailed or will be mailed) also consider including:

• Contact information for getting in touch with the local assessor
• Information about the state-mandated level of assessment (ratio) to current market value
• The effective date for the last reassessment and the time period covered for sales study purposes for these assessments
• The website address for the local assessor where clients can access assessment records for their property and similar properties in their neighborhood
• Proving a property tax calendar

Remember, a lot of this information is available to you on the local assessor’s website.

The Hyperspecialization Topic That Started in 600 B.C.

One Way of Owning Your Zip Code

WHY
Seth Godin, the man Business Week called "the Ultimate Entrepreneur of the Information Age" has authored several blog postings about real estate agents, basically saying that in order to survive in today's environment you must "own your zip code" by "hyperspecializing" or through "micro-specialization."  While I can't claim to be nearly as smart as Mr. Godin, one way that you could own your zip code is to become informed of the real estate assessment and tax process in your community.

Every property owner in your zip code will generally get three notices from the city or county each year: an assessment notice and two real estate tax installment notices (depending on the frequency of reassessment and how annual real estate taxes are billed).  Each of these mailing can provide an opportunity for real estate professionals to assist recent buyers, potential buyers, or future clients.

HOW
I'm not saying that you should become a professional property assessor, which would take too long.  What I suggest is that you get a basic understanding of how property assessments and taxes work in your area and use it to help your clients.  Most general information about real estate assessments in your city or county is available on the Internet.  Many local assessment offices also have public relations outreach programs to inform the public of how and why they do what they do.

Best Free Publications of 2010 for Property Tax Assessment Administration

The following were selected as the best free publications for property tax assessments administration during 2010.  Each publication was released during 2010 and is the property of the authors and/or published.  Links are provided here as a courtesy.

(Selections have been arranged by date of publication.)

1. A Guide to the Structure of Property Tax Abatement in the United States
Authors: Mikesell, John L., C. Kurt Zorn, Esteban Delehite, and Sung-Jin Park
Date: November 2010 (Lincoln Institute of Land Policy Working Paper)

2. Standard on Verification and Adjustment of Sales
Author: International Association of Assessing Officers
Date: Approved November 2010

3. Property Tax Revenue Increased As Property Values Fell
Authors: Merchak, Aaron, and Kail Padgitt (Tax Foundation)
Date: August 31, 2010

4. Standard on Oversight Agency Responsibilities
Author: International Association of Assessing Officers
Date: Approved July 2010

5. The Housing Crisis and State and Local Government Tax Revenue: Five Channels
Authors: Lutz, Byron, Raven Molloy, and Hui Shan (Finance and Economic Series, Division of Research & Statistics and Monetary Affairs, Federal Reserve Board Staff Working Paper)
Date: August 2010

6. State Tax Provisions for Property Reassessment
Author: Higginbottom, Justin (Tax Foundation)
Date: April 29, 2010

7. 50-State Property Tax Comparison Study: Payable Year 2009
Author: Minnesota Taxpayers Association
Date: April 2010

8. The Best and Worst of State Tax Administration
Authors: Lindholm, Douglas L. and Frederick J. Nicely (The Council on State Taxation)
Date: February 2010

9. Assessed Value Cap Overview
Author: International Association of Assessing Officers, Research Committee
Date: Approved for distribution of IAAO Executive Board on January 23, 2010

10. Standard on Property Tax Policy
Author: International Association of Assessing Officers
Date: Approved January 2010

11. Standard on Public Relations
Author: International Association of Assessing Officers
Date: Approved January 2010

12. Standard on Ratio Studies
Author: International Association of Assessing Officers
Date: Approved January 2010

Author’s Note: Publications numbers 1 and 7 are free from the Lincoln Institute of Land Policy by way of free registration on their website.