One of the most notable provisions of the Taxpayers Bill of Rights (Act 431) is the shifting of the burden of proof to the DeKalb County Tax Assessor for changes in property valuation upon appeals filed by the concerned property owners. With the shift, assessing officials are obligated by law to defend excessive increases in assessment. The defence should be made with a preponderance of objective evidence coupled with meaningful arguments.
While the shift has its benefits especially for taxpayers, tax experts have also observed certain drawbacks that taxpayers should be aware of. Said shift affects every property owner with plans to appeal their real property’s assessed values.
Play It Safe
You are well-advised to ask the details of the burden-of-proof matter with an experienced tax consultant. This is because the details of the matter can be complicated, which will likely not be within your understanding as a law-abiding citizen. You must play it safe when it comes to filing an appeal against the assessed value determined by the DeKalb County Tax Assessor, thus, the tax consultant’s advice.
For example, the increase in assessed value may not fall within the limits set by the law wherein the burden of proof shifts from the taxpayer to the assessor. In case of an increase, the burden of proof may also shift to the assessor when the prior year’s value was reduced due to an appeal but the reduction was not based on the income valuation approach. An experienced tax consultant will be able to navigate the ins and outs of the law’s complicated provisions.
Assessors on the Defensive
Understandably, the shift has put the DeKalb County Tax Assessor on the defensive because its office must present probative evidence coupled with logical arguments to support the assessed value. The office must explain why the assessment value meets DeKalb County’s valuation standards as well as walk the Boards through the assessment analysis.
The bottom line: The assessor must explain how the assessment was performed and produce evidence justifying the increase in valuation.
Without the shift, the DeKalb County Tax Assessor may only contend that the assessed value is presumed correct and largely leave it at that point. Instead of explaining the process used in arriving at the property’s value, the office may likely attempt to discredit the grounds on which the appeal was made.
Taxpayers now have enhanced rights under the bill prior to previous years when the burden of proof was on them. The shift may even work in favor of the taxpayers in another manner, too – the DeKalb County Tax Assessor may be more likely to settle the case to avoid the time, money and potential embarrassment of a loss – but it must be emphasized that it will not happen in all cases.
There are drawbacks to the shift. For example, when multiple years are under appeal, the two parties (i.e., taxpayer and assessor) may have the burden of proof for the different years depending on the values for each year. This can result in the complicated presentation of evidence and arguments during the administrative and court hearings.
No wonder then that the DeKalb County Tax Assessor may be compelled to hire lawyers or to engage its lawyers for the appeals. Fortunately, taxpayers can also do the same.
