Legal Definitions - board of equalization

A board of equalization is a governmental body, typically operating at the county or state level, responsible for ensuring fairness and uniformity in property tax assessments. Its primary function is to review and adjust property valuations to ensure that all property owners are taxed equitably. This often involves hearing appeals from property owners who believe their property has been incorrectly or unfairly assessed, and it can also involve making broader adjustments to assessment rolls to maintain consistent valuation standards across a jurisdiction.

Here are some examples illustrating the role of a board of equalization:

• Homeowner Appealing an Assessment: Imagine a homeowner named Maria who receives her annual property tax assessment notice. She believes her house has been valued too high, especially compared to similar homes in her neighborhood that recently sold for less. Maria would gather evidence, such as recent comparable sales data and an independent appraisal, and file an appeal with her local board of equalization. The board would then schedule a hearing where Maria could present her case, and the board would decide whether to adjust her property's assessed value to ensure it is fair and accurate.

  This example demonstrates how a board of equalization provides a mechanism for individual property owners to challenge assessments they believe are incorrect, ensuring due process and fairness in taxation.

• County-Wide Assessment Adjustment: In a rapidly growing county, property values have surged in some areas while remaining stagnant in others. Over time, this has led to significant disparities, where newer properties are assessed close to market value, but older properties are significantly under-assessed, creating an uneven tax burden. The county's board of equalization might conduct a comprehensive review of assessment practices. After finding widespread inconsistencies, the board could order a county-wide adjustment, applying a uniform percentage increase or decrease to assessments in specific districts to bring all properties closer to their true market value and ensure equitable taxation for all residents.

  This example illustrates the board's broader power to make systemic adjustments to assessment rolls, ensuring overall uniformity and fairness across an entire jurisdiction rather than just individual properties.

• Business Challenging a Commercial Property Valuation: A small manufacturing company, "Precision Parts Inc.," owns a commercial building. The company receives a property tax assessment that seems unusually high compared to other industrial properties of similar size and age in the same business park. The owner, Mr. Lee, suspects an error in the valuation process or an unfair comparison. Mr. Lee would compile financial records, recent appraisals of comparable commercial properties, and evidence of any unique challenges affecting his property's value. He would then present this information to the board of equalization, arguing for a reduction in his property's assessed value to align it with market realities and ensure equitable treatment compared to other businesses.

  This example shows that boards of equalization serve businesses as well as homeowners, providing a forum for commercial property owners to dispute assessments and ensure their tax burden is based on a fair and accurate valuation.