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1- Why do county appraisers appraise property?
Each year, the cost of
local services is spread across the value of taxable property. (Local budgets
divided by assessed value of taxable property equals mill levy). The statewide
school mill levy is 20 mills ($20 for every $1000 assessed value). County
appraisers are responsible for uniformly and accurately valuing all property
each year, That way, all citizens fairly share in supporting the cost of
local services. Local services include police and fire protection, roads,
parks, public health services and schools.
2- How is property valued for tax purposes?
All property is valued annually on January 1. Most
property is valued based on its fair market value. Exceptions are land
devoted to agricultural use valued based on its income or productivity;
commercial and industrial machinery and equipment valued based on a formula
set forth in Kansas laws. For more information, contact your county appraiser
or the Kansas Division of Property Valuation at (785) 296-2365.
3- What is fair market value and how is it determined?
Fair market value is the amount an informed buyer is
willing to pay, and an informed seller is willing to take for property in an
open market without undue influences. The three approaches to value are the sales, the cost, and the income approach. The county
appraiser considers all three when determining value.
Sales
Approach
The county appraiser reviews similar properties that have
sold, compares them to your property and may make adjustments for differing
characteristics. This approach is typically applied to residential property
in an area with a substantial number of sales.
Cost Approach
In the cost approach, the county determines replacement
cost new of the property less depreciation. This approach is used when
property is new or unique, with few sales in the area.
Income
Approach
In the income approach, the value of the property is
estimated using the income the property is expected to produce in the future.
It is used to value commercial property and apartments when sufficient market
rent information is available.
Documentation of Value
County appraisers can provide documentation showing how
property was valued. For example, the comparable sales sheet shows similar
properties that have sold, adjustments, and the estimated value of your
property. The inventory contents sheet ("ICS") shows the data
collected on your property (includes measurements, rooms, condition, date of
construction, etc.).
4- Should I appeal the value of my property?
If you believe that the county's value does not reflect
the fair market value of your property on January 1, you should appeal. The
appeals process is an opportunity to review a property in more detail. We all
want values to be accurate so we have a fair basis for sharing the cost of
local services.
You are welcome to request information about how your
property was valued from the county appraiser's office in order to determine
whether you should appeal.
5- How do I appeal?
Appealing Your Notice of Value
The first opportunity you have to appeal is when you
receive the written notice of your property's value in the Spring. To appeal
contact your county appraise within 30
days from the date the notice was mailed.
Once you start the appeal process, be sure to pursue it until you are
satisfied. If you abandon your appeal you cannot "pay under
protest" later for the same property and tax year.
Informal Meeting: The appeal process begins with an informal
meeting with the county appraiser. At
the informal meeting, the county appraiser must provide you with
documentation supporting his or her value. This is also your opportunity to
explain why you believe the county's value is incorrect.
Small Claims Division:If you decide to appeal the informal meeting results, you must
appeal to Small Claims before proceeding to the Board of Tax Appeals (BOTA)
if you property is a single-family residential property. You may appeal to
the Small Claims Division if (a) the property is a residential property other
than a single-family residence: or (b) the property has a value of less than
$2 million and is not agricultural land.
To appeal, file the proper form
with BOTA within 30 days from the date the county mailed your notice of
informal meeting results. The appeal form should be part of the notice.
Contact your county clerk or appraiser for the appeal form if necessary.
Board of Tax Appeals (BOTA):
If you decide to appeal a Small claims decision, you may appeal to
BOTA. You may also appeal your informal hearing results directly to BOTA, if
your property is not a single-family residential property.
To appeal, file the proper form
with BOTA within 30 days from the date you were mailed notice of (a) the
Small Claims Division decision or (b) the county appraiser's informal meeting
results. Again, the appeal form should be part of the notice. Contact your
county clerk or appraiser for the appeal form if necessary.
Appealing by Paying Under Protest
The second opportunity you have to appeal is when you
receive your tax statement (usually in November). If you did not appeal the
notice of your property's value in the Spring, you may later pay under
protest. This is done by filing a payment under protest form with the county
treasurer when you pay your taxes. Whether you pay half or all of you tax,
you must file by December 20. If your taxes are paid in full by an escrow or
tax service agent on or before December 20, you have until January 31 of the
next year to file.
Informal Meeting: The first step in the appeals process is an
informal meeting with the county appraiser. At the informal meeting, the
county appraiser must provide you with documentation supporting his or her
value. It is also your opportunity to explain why you believe the county's
value is incorrect.
Small Claims Division: If you decide to appeal the informal
meeting results, you must appeal to Small Claims before proceeding to the
Board of Tax Appeals (BOTA) if your property is a single-family residential
property. You may appeal to the Small Claims Division if (a) the property is
a residential property other than a single-family residence; or (b) the
property has a value below $2 million and is not agricultural land. To
appeal, file the proper form with BOTA within 30 days from the date the
county mailed your notice of informal meeting results. The appeal form should
be part of the notice. Contact your
county clerk or appraise for the form if necessary.
Board of Tax Appeals (BOTA): If you decide to appeal a Small
Claims decision, you may appeal to BOTA. You may also appeal your informal
hearing results directly to BOTA, if your property is not a single-family
residential property.
To appeal, file the proper form with BOTA within
30 days from the date you were mailed notice of (a) the Small Claims Division
decision or (b) the county appraiser's informal meeting results. The appeal
form should be part of the notice. Contact your county treasurer or appraiser
for the appeal form if necessary.
6- What are the "Burdens of Proof on Appeal?
Small Claims Division: The County must show that its value is
correct.
Board of Tax Appeals: The County must show that the value of
residential or commercial property is correct. However, if commercial real
property is leased, the owner must provide income/expense information (up to
three years) or the county's value is
presumed to be correct. Increases in Value: If real property increases in
value from the prior year, the county must (1) review the record of the
property's last physical inspection and (2) have documentation supporting the
increase. If the value increases following a year when the value was reduced
by appeal, then the county appraiser must also show substantial and
compelling reasons for increasing the value.
Don't assume you will win your
appeal just because the county must support its value. Be ready to show why
your value is more accurate than the county's. See the "Preparing for a
Property Valuation Appeal" brochure for more information.
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