By Dennis Brown

If the value of your real property has increased from the previous year and you don’t agree with the assessment made by the property valuation administrator’s office, you can appeal that determination.

A Lewis County resident said he has been through that process and said he wanted to make other property owners aware of the steps to take in making sure the value placed on their property was a fair one.

Section 172 of the Constitution of Kentucky requires that all property be assessed for taxation at its fair cash value. The assessment date is January 1 each year.

A Kentucky Department of Revenue pamphlet spells out the steps you should take to have your assessment reviewed and the fair cash value of your property set for assessment purposes.

Fair cash value, according to information contained in the pamphlet, is the price a property would bring at a fair, voluntary sale with a willing buyer and a willing seller. Whenever an assessed value of real property changes from the previous year’s assessment, the local PVA is required to send the affected property owner a notice of change.

When property owners disagree with the new assessed value, the first step in the process to appeal is to schedule a conference with the PVA’s office.

The conference must be scheduled prior to the end of the tax roll inspection period, which affords property owners the opportunity to review all assessments for the current year. The inspection period is normally scheduled to begin on the first Monday in May and continues for two weeks. The schedule may be adjusted depending on assessment work going on that county.

Each county’s inspection period schedule is required to be published in the local newspaper with the widest circulation.

The pamphlet indicates that most PVAs send out assessment increase notices one to two weeks prior to the beginning of the inspection period although some may send notices earlier. Property owners wanting to discuss the new assessment should schedule a conference as soon as possible after receiving the notice.

At the conference, the PVA or a designated deputy will explain how the new assessment was derived. All information used to reassess the property should be presented to the property owner at that meeting.

Property owners must declare their opinion of value for the property and be prepared to present any evidence to support the declared value. That evidence could include sales or assessment data from comparable properties; any recent appraisals of the property; original construction or cost of additions or improvements to the property; documentation of insured value; asking price information if the property has been offered for sale recently; and, for commercial properties, income and expense statements for the past three accounting periods.

While it is best for the meeting to be face-to-face, it is permissible for the conferences between PVAs and property owners to take place over the telephone.

Most disagreements over assessments, according to information in the pamphlet, are resolved at these conferences. Either the property owner understands more about the

assessment process and accepts the new assessment or an error is discovered in the PVA records and the value of the property is changed.

If the conference does not end in agreement, the next step would be for the property owner to file an assessment appeal with the county clerk’s office.

A copy of the written summary of the conference results from the PVA’s office is presented to the county clerk as documentation that a conference was held with the PVA when an appeal is filed.

Appeals forms are available from the county clerk’s office in the county where the property is located. Property owners are required to provide general information about the property and confirmation is required that a conference has been held with the PVA.

The property must also state the owner’s opinion of the fair cash value of the property and explain why they think the assessment is too high. Once the appeal is filed with the county clerk’s office an appeal hearing will be scheduled.

The last day to file an appeal is one working day after the close of the inspection period.

Appeals are head by a local three member board of assessment appeals. The board is comprised of three local residents who are knowledgeable about real estate values in the county. Local hearings are informal although property owners may have an attorney or representative present if they desire.

At the hearing the PVA will present information in support of the assessment and the property owner must present factual evidence to support their claim of value. A decision will not me made immediately and the property owner will be notified by certified mail of the board’s decision. If the property owner is dissatisfied with the local board’s ruling, an appeal can then be filed at the state level with the Kentucky Board of Tax Appeals (KBTA).

The appeal to the KBTA must be submitted within 30 days of the date of the mailing of the ruling notice sent by the local board of assessment appeals. The property owner and PVA will be notified of the time and location of the appeal hearing. Those hearings are more formal than the hearings before a local board, although legal representation is not required.

The property owner must again present evidence to support their opinion of the property’s value and the PVA will again document the basis of the new assessment. Rulings of the KBTA are mailed to the property owner and the PVA.

If the property owner disagrees with the ruling of the KBTA, the matter can then be taken to the circuit court in the county where the property is located then on to the Kentucky Court of Appeals, if necessary.

While the matter is being resolved, the property owner is still required to pay property taxes. A supplemental bill with be sent, if warranted, to the property owner after the matter is resolved.

More information concerning the property assessment appeal process is available at the local PVA office in the Lewis County Courthouse or by writing to the Office of Property Valuation, 501 High Street, Station 30, Frankfort, KY 40620.

The cost of mailing a letter will be increasing in a couple of months following an annual review by the Governors of the US Postal Service.

Prices are reviewed annual and adjusted each May. The new rates will include a two cent increase in the price of a First-Class Mail stamp to 44 cents. The new prices will go into effect Monday, May 11.

While the cost will be going up for the first ounce of mailed letters, additional ounces will remain at 17 cents each. Forever Stamps purchased before the increase takes effect, may still be used with no need for additional postage for a one ounce letter mailing. On May 11 the price of the Forever Stamp will be 44 cents. Forever Stamps were developed to help consumers ease the transition during price changes.

Postmaster general John Potter said, “The Postal service is not immune to rising costs which are affecting homes and businesses across America today. Even with the increases, the Postal Service continues to offer some of the lowest postage prices in the world.”

The new rates for all postal services are available online at usps.com/prices.

A USPS news release notes that for the average household, the First-Class Mail stamp price change will

represent an additional $3.00 over the course of a year. When compared to annual increases in other household expenses, such as groceries, health care and utilities, the Postal Service continues to be an economical choice of shipping and mailing during tough economic times, according to the release.

The increase is intended to help cover the cost of living increases for postal employees and will also boost revenue lost because of a decrease in overall mail volume for the postal service, which is reported to be down more than four percent from the previous year.

The USPS posted an estimated $2.8 billion loss in 2008 and is poised for an even larger loss this year without an upturn in the economy. While the postal system could have cited extraordinary circumstances and asked for larger increases, postal officials felt the higher postage costs would result in an even greater decline in mail volume.

The increase was approved by the Postal Regulatory Commission, an independent agency. The postal service has reportedly been cutting costs and reducing work hours along with asking Congress to allow mail to be delivered five days a week rather than the current six.

Other rate changes slated to become effective in May include postcard stamps increasing a penny to 28 cents and the first ounce of large envelopes will increase a nickel to 88 cents.