Board of Equalization

Definition

Board of Equalization: A board of equalization is a governmental body responsible for reviewing and adjusting property tax assessments. These boards are typically found at the state or local level and focus on ensuring that property taxes are assessed equitably among property owners, preventing discrepancies and unfair tax burdens. They may hear appeals from property owners who believe their property has been incorrectly assessed and make adjustments as necessary.

Examples

California State Board of Equalization: In California, the Board of Equalization oversees the assessment practices of local county assessors. They handle appeals related to property tax assessments and administer various taxes.
Cook County Board of Review: In Cook County, Illinois, the Board of Review functions similarly, ensuring assessments are uniform and equitable, and addressing property owner appeals.
City of New York Appeals Board: This board addresses property tax assessment disputes for New York City property owners, ensuring each property is assessed fairly.

Frequently Asked Questions (FAQs)

Q1: Who can appeal to the board of equalization?

A1: Typically, property owners who believe their property has been improperly assessed or believe there is an error in their property tax assessment can file an appeal.

Q2: What is the process for appealing a property tax assessment?

A2: The process usually involves filing an appeal application with the local board of equalization, providing supporting documentation, and possibly attending a hearing where the board reviews the appeal and makes a decision.

Q3: How does the board determine if an assessment is equitable?

A3: The board reviews comparable property assessments, the current market value, and any evidence provided by the property owner to determine if the assessment is fair and consistent with similar properties.

Q4: How often are property assessments reviewed?

A4: The frequency of property assessments can vary by jurisdiction, commonly ranging from every year to every few years.

Tax Assessment: The valuation of real estate or personal property by a municipal or county assessor for the purpose of taxation.
Property Tax: A tax levied on real estate by the local government, based on the assessed value of the property.
Appeal: A request made by a property owner to review and change their property tax assessment.
Assessor: The official who evaluates or estimates the value of property for taxation purposes.

Online Resources

References

International Association of Assessing Officers (IAAO), “Property Assessment Valuation,” Kansas City, MO, IAAO Publications.
California State Board of Equalization official website.
Cook County Board of Review official website.

Suggested Books for Further Studies

“Property Assessment Valuation” by the International Association of Assessing Officers.
“Property Taxation and Local Government Finance” edited by Wallace E. Oates.
“Assessment Administration” by the International Association of Assessing Officers.
“Understanding Property Taxes” by Lawrence C. Walters.

Real Estate Basics: Board of Equalization Fundamentals Quiz

### What is the primary role of a board of equalization? - [x] To ensure property tax assessments are fair and equitable. - [ ] To collect property taxes from homeowners. - [ ] To sell properties with unpaid taxes. - [ ] To enforce property zoning laws. > **Explanation:** The primary role of a board of equalization is to ensure that property tax assessments are fair and equitable, preventing any discrepancies or unfair taxation. ### Who typically appeals to a board of equalization? - [ ] Only real estate investors - [ ] Developers - [x] Property owners who believe their property is incorrectly assessed - [ ] Government officials > **Explanation:** Property owners who believe their property has been incorrectly assessed typically appeal to the board of equalization for a reassessment. ### What is a key function of the board during an appeal process? - [ ] To increase property tax rates - [ ] To disburse tax refunds - [x] To review evidence and adjust assessments as necessary - [ ] To conduct property inspections yearly > **Explanation:** During an appeal, the board reviews evidence and can adjust property assessments as necessary to ensure fairness. ### How does the board determine if an assessment is equitable? - [ ] By comparing the property to at least five subsequent years' taxes - [ ] By looking up the owner’s income - [x] By evaluating comparable properties and current market value - [ ] By adjusting according to property owner’s claim only > **Explanation:** The board determines if an assessment is equitable by evaluating comparable properties, their assessments, and current market value. ### Why are property assessments important? - [ ] To determine mortgage loan values - [ ] To identify property zoning regulations - [ ] To evaluate a property's aesthetic appeal - [x] To establish fair property taxes > **Explanation:** Property assessments are important because they help establish fair property taxes based on the assessed value of a property. ### What might the board of equalization base its decisions on? - [ ] Customer reviews on property condition - [x] Documentation and supporting evidence provided by the property owner - [ ] Rental income derived from the property - [ ] Climate of the area > **Explanation:** The board of equalization bases its decisions on documentation and evidence provided by the property owner and comparable property assessments. ### How frequently can property assessments be reviewed? - [x] Annually or every few years, depending on the jurisdiction - [ ] Only upon sale of the property - [ ] Every ten years - [ ] Never > **Explanation:** Property assessments can be reviewed either annually or every few years depending on local jurisdiction policies. ### What is one resource property owners might use to understand their property tax assessments? - [ ] Interior decorating magazines - [ ] Social media reviews - [ ] Movie ratings - [x] Board of equalization or local tax authority websites > **Explanation:** Property owners can use resources like the board of equalization or local tax authority websites to understand their property tax assessments. ### How can property owners prepare evidence for their appeal? - [ ] Filing anonymous complaints - [x] Gathering comparable property assessments, photos, and market data - [ ] Posting issues on social media - [ ] Avoiding all interaction with tax authorities > **Explanation:** Property owners can prepare by gathering comparable property assessments, photos, and market data to support their appeal at the board of equalization. ### An equitable assessment helps ensure which of the following? - [x] That property taxes are fairly distributed among all property owners - [ ] That the highest possible taxes are always collected - [ ] That property taxes remain static - [ ] That large commercial properties pay the least taxes > **Explanation:** An equitable assessment ensures that property taxes are fairly and proportionately distributed among all property owners.