ARE YOU PAYING TOO MUCH FOR YOUR COMMERCIAL PROPERTY?

Commercial property owners or lessors in Maryland have the right to challenge the tax assessment levied upon their commercial property. The state of Maryland has an administrative assessment appeal process that governs three instances in which appeals of commercial property assessments are allowed. A commercial property assessment may be appealed:

• by filing a Notice of Appeal within 45 days of receipt of an assessment notice (generally assessments of commercial property are conducted every 3 years)
• by filing a Petition for Review by January 1 of each year during the 3 year period in which the current assessment applies
• by filing a Petition for Review within 60 days of a purchase or transfer of commercial property provided the transfer or purchase is after January 1^st but before July 1^st of that year.
  
  Once an Appeal or Petition for Review is filed, a personal or telephone hearing will be scheduled at the supervisor's level. The hearing is informal and brief and is provided to give the commercial property owner an opportunity to present evidence explaining the inaccuracy of the existing assessment. The owner is entitled to obtain a copy of the Assessor's worksheet used in calculating the assessment. For this hearing, the owner should submit any documents and expert valuations that focus upon the following:

• Any inappropriate property characteristics used or mathematical errors made in calculating the assessment
• Property income data which differs from the income data utilized to calculate the assessment
• Examples of appropriate sales comparable properties in relation to the property
• Other valuations methods asserted to be appropriate
• Why the assessed value is not indicative of the market value of the property
  
  After the hearing is completed, the commercial property owner or lessor will receive a final notice of assessment from the Supervisor of Assessments.

If the property owner believes the assessment is still incorrect, then an appeal may filed with the Property Tax Assessment Appeals Board within 30 days of the final notice. At the hearing before the Board, the property owner or lessor is provided an opportunity to present any appropriate evidence and expert valuations challenging the assessment. The owner or lessor is also entitled to obtain data regarding the comparable properties utilized by the Assessor in establishing the assessment upon request.

Upon final determination of the Board, if it is still believed the assessment is incorrect, the owner or lessor may appeal the assessment to the Maryland Tax Court which will conduct an administrative hearing. Again the appeal must be filed within 30 days. If the owner or lessor disagrees with the Maryland Tax Court decision, then appeal is made through the judicial system beginning with the Circuit Court for the County wherein the property is located.