An Empirical Analysis of the Property Tax Appeals Process

Property tax appeals have increased dramatically at significant cost to local governments. Little is known about whether or how well the appeals process resolves potential assessment errors. This paper investigates the efficiency and equity of this process. Regarding the efficiency of correcting assessment error, reductions are granted for a majority of appealing homeowners who are overassessed but also for homeowners who are not overassessed, leaving them underassessed or further underassessed. Regarding the fairness of the appeals process, homeowners from particular neighborhoods receive assessment reductions more often. Tax representatives play an important role in explaining the advantage enjoyed by these homeowners.