Assessment Appeals in 2024

Q:The BC Assessment website states “we encourage you to contact us before submitting an official Notice of Complaint (Appeal).” Can BC Assessment reduce an assessed value before a complaint is filed or before going through the PARP? If so is there an expected tolerance range for value changes at this pre-PARP stage?

A:The primary reason BC Assessment encourages people to contact them before submitting a complaint, is that many owners have simple questions that can be answered by BC Assessment staff without having to go through the appeal process. In regard to reductions before a complaint is filed, yes, BC Assessment can make a reduction, but most often these are correcting clear errors or omissions. In rare circumstances, BC Assessment staff can make valuation changes when there is indisputable market evidence that supports a significantly different value than what was received on the assessment. The tolerance range that BC Assessment typically quotes at PARP hearings is a +/- 10% as per International Association of Assessing Officers (IAAO).

Q: We know the first level of appeal is the Property Assessment Review Panel (PARP) and that complaints (appeals) to PARP must be filed directly with BC Assessment by the January 31st deadline. We also know that the party bringing the complaint needs to support their position in a professional and organized manor as the burden of proof rests with them. Is there a notable difference in the rate of success owners experience when representing themselves vs. having professional Appraiser representation? Is there statistical evidence which suggests hiring an Appraiser will increase the chance of success at a PARP hearing?

A:The answer here varies greatly depending on the owner’s experience level and the complexity of the property. Additionally, simply being a professional Appraiser is only one part of the equation. Assessment appeals are not as simple as “what is the market value of the Subject Property?” There is market value, equitable value, case law precedence, classification issues, exemptions options, additional school tax, speculation and vacancy tax, empty homes tax and many other site-specific factors that impact assessed values. From my experience, you typically stand a much better chance when hiring a knowledgeable property tax consultant who is willing to dig into the details.

Q: BC Assessment recently published a document titled “What happens at your PARP Hearing” and it states every PARP hearing starts with 4 minutes of introductions followed by 8 minutes for the complainant to present their evidence to Panel. Is there a recommended or scripted format Assessors use at PARP to introduce a property, identify pertinent issues with valuation, and describing the sales data and evidence to the Panel?

A:Assessors have a specific format that they follow depending on the property type. As the entire process is short, it is important to clearly lay out what value you believe your property should be along with the evidence and logic that supports it. Put yourself in the PARP members shoes; they have never heard of, been to or read anything about your property. You need to cut to the point and spend time emphasizing the logic of how you came to your conclusion, along with why it is best option.

Q: What type of support for adjustments is reasonable to have ready in case this is requested by the Assessor or panel members? Should the Appraiser support adjustments with paired sales analysis or linear regression at this level of appeal?

A: Support for any adjustments is always good to have. If it is not possible, you will need to explain the reasonability of the argument. Like any debate or negotiation, you need to make a logical and reasoned argument that the Panel members can rely on. Missing facts, information or assuming something is obvious is a very common mistake, but so is trying to pack too much information into a small window of time.

Q:Do Assessors investigate sales data using the same methods Appraisers use, such as paragon MLSLink or talking with Realtors about their sales?

A: The Assessment world is shifting as technology is used to support the mass appraisal function. For single family residential and strata residential properties, the Assessors must cope with significant volumes, so less time is spent contacting parties to a sale. In ICI properties, there are less sales, and most sales are more thoroughly investigated. This usually includes calls or questionnaires being sent to both vendors and purchasers to confirm the nature of the sale.

Q: The Panel typically provides its decision verbally to the Parties at the end of the hearing. Equity Value is also a consideration and occasionally can play a role in the final decision. The Courts have stated that taxpayers have the right to an assessment at the lower of either market value or an equitable value compared to the assessment of similar property Assessor of Area 9 – Vancouver v. Lount (1995) Stated Case 353 (BCCA); Bramalea Limited v. Assessor of Area 9 – Surrey (1989), Stated Case 277 (BCCA)]. What is the correct consideration given to the concept of Equity Value in a PARP hearing? Let’s say a value reduction is justified but this would this result in an unfairly high assessment for a neighbour – could this reduce the chance of a value reduction?

A:Equity should be given the same consideration as market value in a PARP hearing; however, it often takes an assessment appeal expert to be able to successfully prove it during these short hearing appointments. The equity argument requires a knowledge of case law, the application of various mass appraisal statistics (ex. assessment to sales ratios) and the experience to know how to counter the Assessor’s arguments about a change in assessment leading to unfairly assessed neighbours.

Q:If the panel decision is not in the owner’s favour, are there typical indicators which suggest the matter should be taken to the Appeal Board for further review?

A:All Appraisers learn at an early stage that appraisal is part science and part art. Simply put there is often room for interpretation. My advice is to contact a professional that you respect and get a second opinion before committing to an appeal to the Property Assessment Appeal Board (PAAB). Appeals to the PAAB take more time and have a higher level of scrutiny. That said they allow for a clear and logical argument to be formed, whereas the PARP process is about volume of appeals in a short period of time.

Q: Are there any other recommendations you would give to assist appraisers or owners completing an assessment appeal?

A: Anyone completing an assessment appeal should remember to approach the Assessor early on to understand their position. Remember the Assessors are government employees that should just want to get the value right. Having good communication with the Assessor is the first step in understanding if there is potential for a change through discussion or if it will require a decision from either PARP or PAAB.