Board of Equalization (BOE)

Introduction

Properties are appraised so that the costs of schools, safety, fire protection and other public benefits are borne in proportion to the amount of money our individual properties are worth. The property taxes you pay are based on your property’s assessed value, as determined by the city Assessor. If you disagree with the Assessor’s value, you can appeal that value. Properties are assessed based on constant research for significant facts (sales) to accumulate and analyze in order to estimate the full and true (fair market) value of your property. Finding the full and true market value involves estimating the price most people would pay for it in its present condition. The assessor does not create the value – people create value through their transactions in the marketplace. State law requires your property to be assessed at its full and true value each and every year. The assessor has the legal responsibility to study those transactions and appraise your property accordingly. Values change in the marketplace, whether improvements are made to property or not. Each year assessments are done all over again because the market value changes from one year to the next. This publication describes what you should do before you appeal, the role of your local Board of Equalization, and the steps required to file and present a residential assessment appeal. If you have questions that are not answered here, you should contact your Assessor or city’s clerk. The information in this publication has been prepared by the Appraisal Company of Alaska which oversees the administration of The City of Nome property tax system. The assessor's office does not control the total amount of taxes collected. The assessor's primary responsibility is to find the full and true value (fair market value) of your property, so that you may pay only your fair share of the tax burden. A tax rate applied to your property’s assessed value determines the amount of tax you pay. The tax rate is determined by the City Council or Borough Assembly.

Before You File an Appeal

Consult with Your City Assessor First - You may not need to file a formal appeal if you talk with staff from your city Assessor’s office first.

They can

• Explain your property’s assessed value
• Answer any questions you may have about the assessment
• Review any additional, pertinent information you may provide

If the Assessor discovers an error, they may be able to reduce your property’s assessed value to correct that error. However, you should always submit a written appeal – complete an Assessment Appeal Application, which is available on the city website. Your application must be submitted on a timely basis.

The Role of Board of Equalization (BOE)

Local Board of Equalization consist of city council or board assembly members. The purpose of BOE is to settle disputes between the city Assessor and property owners. Board of Equalization, with proper evidence, can

• Lower, raise, or confirm a property’s assessed value

Board of Equalization cannot

• Reduce your property’s assessed value simply because you are paying more taxes than your neighbor
• Reduce your taxes due to inability to pay
• Fix the tax rate, levy taxes, or change tax rates
• Grant or deny exemptions
• Extend filing periods
• Rehear an issue already ruled upon

Appeals and Their Filing Deadlines

To appeal the value of your property, you must file an Assessment Appeal Application form. Applications can be accepted only within certain time period; late applications will not be accepted, unless evidence for unforeseen circumstances is provided and BOE will review it. To be valid, all appeals must be filed on the official written form. To obtain a copy, you should contact the clerk of the city or borough. Additionally, form might be available for download from the city or borough website. To be valid, your application must contain all the following information.

1. Applicant’s Information
   1. Property owner’s name, mailing address, telephone number
2. Property Identification
   1. Enter the applicable property identification information from your assessment notice
3. Value
   1. You must enter the value for both the Assessor’s value on the roll and your opinion of value
4. Some of the Reasons for Filling Appeal
   1. Decline in Value - the market value of your property has decreased and is no longer as high as its assessed value. Reminder: Your appeal must be based on your property’s market value as of January 1 of the year in which you are filing and is effective only for the one year being appealed
   2. The market value of your property based upon a change in ownership is less than the Assessor’s value
   3. New Construction - The market value of your property based upon completion of new construction is less than the Assessor’s value, or the value of any construction in progress as of January 1 is incorrect.
   4. Calamity Reassessment - the reduced value from the Assessor’s reassessment of your property damaged by a misfortune or calamity is incorrect.
   5. Change in Inventory - Incorrect value(s) on escaped property (property not originally assessed or those that were underassessed)
   6. Other.
   7. Reasons such as – “Value is too high”, “Nothing has been improved”, “I just disagree”, “Value changed too much in one year”, “Taxes are too high”, etc. are not reliable and everything needs to be supported by facts.
5. Written Findings of Facts
   1. Provide assessor with supporting facts and documents that support your reason for appealing property value for example photos if there is a damage to the property, sales information, appraisal report, engineering report, etc.

By Alaska State law, "THE APPELLANT BEARS THE BURDEN OF PROOF.  The only grounds for adjustment of assessment are proof of unequal, excessive, improper, or under valuation based on facts that are stated in a valid written appeal or proven at the appeal hearing. If a valuation is found to be too low, the Board of Equalization may raise the assessment."  Alaska Statute 29.45.210.(b)

Evidence to Support Your Opinion of Your Property’s Value

There are three basic methods used by appraisers to find the value of property: comparable sales of similar property approach; replacement cost less depreciation approach; and income approach. In most residential appeals, the most reliable type of evidence to support your opinion of “fair market value” is the sale of properties similar to yours. These are called “comparable properties.” In a residential appeal the best evidence of market value is sale price, the sale price of the subject property, and of similar properties. Commercial properties may require rent rolls, leases, and income and expense information.

Before you begin to gather evidence about comparable properties, you should gather information about your own property. Determine the age, building size(s), lot size, and so forth for your property first, and then compare that information with the Assessor’s information for your property. You can obtain information about your property by contacting the city / borough clerk or Assessor’s office.