How to calculate the 1/3 over-assessed qualification in a 25.25(d) Hearing.

There are two methodologies that allow you to judge whether a value meets the 1/3 over-assessed rule:

1) Using the Current Assessed Value:

Calculation:
**Current Assessed Value X 75% = Threshold for Corrected Value

Ex. Current Assessment: $100,000
$100,000 x 75% = $75,000 Threshold for Corrected Value

In order for the appeal to qualify under section 25.25(d), the Appraisal Review Board must determine that the value of the property in question has a market value of $75,000 or less.

Simplification:

Current Assessment = $100K Threshold for Corrected Value = $75K

As you can see, 25% of the Current Assessment equals 33.33% of the Threshold Value. This illustrates that the ARB must reduce the Current Assessment to $75,000 or it does not qualify. Thus, if the ARB ruling is $75,000 of lower, the property qualifies as overvalued.

2) Based on the Corrected Value (ARB Ruling):

Calculation:
**(Corrected Value X 1/3) + (Corrected Value) = Threshold for Current Assessed Value
Or
**Corrected Value / 75% = Threshold for Current Assessed Value

Ex. Corrected Value = $75,000
($75,000 x 1/3) + $75,000 = $100,000 Threshold for Current Assessed Value
Or
$25,000 + $75,000 = $100,000 Threshold for Current Assessed Value

In order for the appeal to qualify under section 25.25(d), the Assessed Value must be more than $100,000.

Simplification:

Corrected Value (aka ARB Ruling) = $75K Threshold for Assessed Value = $100K
If the ARB ruled that the Corrected Value for a property is $75k, then you would increase the Corrected Value by 1/3. In this case you would increase the Corrected Value by $25,000, giving you a Threshold for Assessed Value of $100,000. If the property is assessed for $100,000 or greater, then the ARB ruling meets the qualification of being over-assessed by 1/3.