What Is an Escape Assessment in Property Tax?

An escape assessment is a correction to a property’s assessed value from a previous year, resulting in a retroactive tax bill. This adjustment occurs when the local assessor’s office discovers a property was under-assessed or a taxable event was missed. The bill covers the difference between the tax that was originally paid and what should have been paid based on the corrected value.

Common Triggers for an Escape Assessment

A primary reason for an escape assessment is new construction completed without the assessor’s knowledge. This often happens when work is done without building permits, so the assessor’s office is not notified of the improvement. When an addition like a new room or garage is discovered, its value is added to the property’s assessment for the year it was completed and any subsequent years it was missed.

A change in ownership that was not properly reported is another frequent trigger. For example, if a property is transferred after an owner’s death, the assessor’s office must be notified to reassess it at current market value. If this notification is delayed, the property may continue to be taxed at its old value, leading to an escape assessment once the change is discovered.

Clerical errors within the assessor’s office can also lead to an escape assessment. These mistakes might include data entry errors about a property’s size, features, or the incorrect application of a tax exemption. For example, a homeowner’s exemption may have been applied to a property that was no longer eligible, such as a former primary residence that has become a rental property.

The Escape Assessment Notice and Billing

The process begins when the property owner is mailed a “Notice of Proposed Escape Assessment.” This document is an informational notice, not the tax bill itself. It states the tax years being corrected, the original assessed value, the new corrected value, and the difference between them that forms the basis for the additional tax.

The notice provides a breakdown of the principal amount of escaped taxes. Interest is calculated on the unpaid tax, accruing from the date the taxes would have originally been due. Penalties are not included unless the assessor determines there was willful concealment or fraud by the property owner.

After the notice is issued, a separate tax bill for the escape assessment is mailed, usually within 60 days. This bill states the total amount due, including the principal tax and any accrued interest, and specifies a payment deadline. The payment process is similar to that of a regular property tax bill.

Responding to an Escape Assessment

Upon receiving a Notice of Proposed Escape Assessment, review it carefully for inaccuracies. The property owner should verify the tax years, the reason for the assessment, and the values presented. If the information is correct and the owner agrees, they should wait for the official tax bill and pay it by the due date.

If the property owner disagrees with the corrected value or believes the assessment was issued in error, they have the right to dispute it. The initial step is an informal review by contacting the assessor’s office directly to discuss the matter. This can sometimes resolve the issue without further action if a clear mistake is shown.

If the informal review does not resolve the disagreement, the owner can file a formal appeal. This requires submitting a form like an “Application for Changed Assessment” to the local Assessment Appeals Board. The deadline to file is often 60 days, but the start date can vary, so the notice will state the specific deadline. Filing this application initiates the appeals process, which may lead to a hearing where the owner can present evidence.