Judge, jury and executioner for property tax appeals

The famous 1920s-1950s bank robber, Willie Sutton, was asked why he robbed banks. Sutton is reported to have answered “Because that’s where the money is.” Today, the Boulder County commissioners and their minions, the assessor and Board of Equalization (BOE) may have their own answer about who to rob. It’s in the assessment of real estate property and the property taxes that can be generated.

Last spring, the assessor sent property owners a new assessment. As part of the assessment process, any owner who disagrees has the right to appeal the assessment. The owner appeals by submitting what he feels should be the assessed value. The assessor responds with three comparables to justify the original assessment. If the owner again disagrees, the assessment can be appealed to the BOE for a hearing. At the hearing, the owner submits a justification for a different assessment as opposed to the assessor’s estimate.

Sounds reasonable that there is a chance to convince the BOE hearing officer that the assessor was wrong, that the assessment should be reduced to the owner’s estimate. But the joke’s on the property owner making the appeal. The Board of Equalization and the county commissioners are one and the same, and they appoint the hearing officer. And though the assessor is elected and not directly under the commissioners on the county organizational chart, the commissioners are the ultimate authority. Everyone ends up reporting to the commissioners.

After the hearing, the officer reports to the commissioners and recommends to either approve or disapprove the owner’s appeal. The commission makes the final decision. It’s a case of the commissioners being judge, jury and executioner. There will be some assessments that may be reduced, but I believe it is a nominal number. Yes, there are two more appellate stages, but how many owners have the time or financial resources to continue?

As a comparison, if a judge has a conflict of interest regarding parties involved in a case the judge is hearing, he should recuse himself. Similarly, the Board of County Commissioners needs to recuse itself from controlling both the assessor and serving as BOE in its role as final decision maker. The assessment appeal process needs to be revised because of the inherent conflict of interest of the commissioners.

Since the assessment is the basis for property taxes, what incentive do commissioners have to give a reduction? They are not going to give up one tax dollar if they can find a way to keep it. The assessment is the bank to be robbed for the pet political projects of the commissioners.

In light of the overwhelming defeat of Proposition HH, with its goal of taking more of your property tax dollars again, the basis for appeals must be reformed. The governor and state Legislature didn’t respect the voters’ rejection of Prop HH. Instead the Legislature went into special session to find ways to subvert the will of the people and not give real property tax relief. It sent four onerous antiproperty owner tax bills to the governor, which he happily signed.

Prop HH should teach property holders that a new truly neutral property appeal process is essential, one that gives the property owner an honest, fair, objective appeal process that can provide tax relief without the undue influence of the county commissioners. The Board of County Commissioners (aka Willie Sutton) must be stopped from unfairly robbing owners of property taxes through its absolute management of the assessment appeal process.