How to Appeal a Commercial Property Tax Assessment in Maryland (SDAT Process)
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In Maryland, you can appeal your commercial property tax assessment within 45 days of receiving a reassessment notice. If it is a non-assessment year, you can file a Petition for Review by the first working day after January 1.
The appeals process consists of three main stages: a Supervisor’s Level review, an appeal to the Property Tax Assessment Appeal Board (PTAAB), and finally, the Maryland Tax Court.
Securing legal counsel early is critical to navigating strict deadlines and presenting complex valuation evidence.
When Can I Appeal My Maryland Commercial Property Tax Assessment?
Maryland operates on a triennial assessment system, meaning the State Department of Assessments and Taxation (SDAT) reassesses every property at least once every three years.
However, you do not have to wait for your reassessment year to seek relief. You have three distinct opportunities to file an appeal:
Upon Reassessment (45-Day Deadline): When you receive a new triennial or interim Notice of Assessment, you must file an appeal within 45 days of the notice date.
Petition for Review (January 1 Deadline): During the two years your property is not actively reassessed, you can file a “Petition for Review” by the first working day following January 1. This is vital for commercial properties experiencing high vacancy rates, revenue drops, or significant damage since the last assessment.
Upon Purchase (60-Day Deadline): If you purchase a commercial property and the transfer occurs between January 1 and June 30, you may file an appeal within 60 days of the transfer. This is highly recommended if your purchase price was lower than the state’s assessed value.
What Are the Steps in the Maryland SDAT Appeals Process?
If you decide to challenge your assessment, the process follows a strict procedural hierarchy.
1. First Appeal: The Supervisor’s Level
Your initial appeal is filed with your local [SDAT assessment office] https://dat.maryland.gov/
The Hearing: This is an informal exchange of information with an assessor designated by the Supervisor of Assessments. Hearings typically take about 15 minutes and can be conducted in writing, by phone, by video, or in person.
The Goal: You must present evidence, such as comparable sales or income and expense data, to show why the state’s Total New Market Value is inaccurate.
The Outcome: SDAT will issue a “final notice” of their decision
Second Appeal: Property Tax Assessment Appeal Board (PTAAB)
If the Supervisor refuses to lower the assessment to a satisfactory level, you can escalate the case.
The Deadline: You must appeal to the PTAAB within 30 days of the date on the Supervisor’s final notice.
The Board: The [PTAAB](https://ptaab.maryland.gov/) is an independent agency, not part of SDAT. Each county has its own board made up of local residents appointed by the Governor.
- Burden of Proof: You bear the burden of proving by “clear and convincing evidence” that SDAT’s valuation is incorrect. This is the final level where you can submit supplemental valuation evidence.
3. Third Appeal: The Maryland Tax Court
If you disagree with the PTAAB’s written order, your next step is formal litigation.
- The Deadline: Appeals to the Maryland Tax Court must be filed within 30 days of the PTAAB notice.
- The Venue: Despite its name, the [Maryland Tax Court](https://taxcourt.maryland.gov/) is an independent administrative unit of the Executive Branch that performs quasi-judicial functions. Proceedings here are exclusively in-person and highly formal, involving pre-trial conferences, subpoenas, and the exchange of evidence.
Why Do I Need a Maryland Property Tax Appeal Attorney?
Commercial real estate assessments involve complex financial data, capitalization rates, and nuanced market conditions. Missing a strict 30- or 45-day deadline automatically forfeits your right to relief for that tax year.
A skilled [Maryland commercial property tax appeal attorney](https://www.ledinghamlaw.com/maryland-property-tax-appeal/) will:
• Ensure all statutory deadlines are meticulously met.
• Gather compelling, specialized evidence, such as income and expense reports for income-generating properties.
• Present formal, persuasive arguments at the PTAAB level.
• Provide necessary legal representation in the Maryland Tax Court, where proceedings mimic traditional civil litigation.