Board of Equalization Summary of State Law
The Utah State Legislature has made some significant changes to the appraiser licensing law effective April 1996. The following is the Salt Lake County Board of Equalization's summary of this legislation and its implications along with Board procedures.
All tax representatives and appraisers who represent property owners before the Board of Equalization must have a signed authorization from the property owner in order to have an appeal accepted.
It is unlawful for anyone to prepare an appraisal or perform a consultation service relating to real estate valuation for compensation without first being licensed or certified. [See UCA §61-2b-3 for exemptions]. An opinion of value exempt under this subsection may not be referred to as an appraisal.
An appraisal is "an unbiased analysis, opinion, or conclusion relating to the nature, quality, value, or utility of specified interest in, or aspects of, identified real estate or identified real property". [UCA §61-2b-2(1)(a)(i)]
Consultation service Restrictions: A person who prepares a written or oral consultation report may not refer to the consultation report as an appraisal, an appraisal report, or in any manner that may be interpreted as referring to an appraisal or an appraisal report.
An appraisal that has been prepared on a contingency fee basis may not be allowed in any proceeding before a county board of equalization or the commission. [UCA §59-2-703(2)(c)]. If you represent a taxpayer on a contingency fee arrangement you must clearly state this in writing with your opinion of value, and in any oral statements. A consultation service may be performed on a contingency fee basis if that arrangement is disclosed. [UCA §61-2b-36].
The Management section of the Ethics Provision of USPAP (Uniform Standards of Appraisal Practice) states that compensation for an appraisal that is contingent upon the reporting of a predetermined value or direction of value that favors the cause of the client is unethical. UCA §61-2b-27(1) requires licensed appraisers to comply with USPAP.
The Salt Lake County Board of Equalization interprets this to mean that if you intend your opinion of value to be unbiased and considered an appraisal you must be licensed with the Division of Real Estate, Department of Commerce. If your opinion of value is to be considered an appraisal it must meet the requirements of the UCA (Utah Code Annotated) and Uniform Standards of Appraisal Practice USPAP. If you are exempt from licensing requirements or if you are receiving a contingency fee your analysis and opinion of value must be considered a consultation service and will be given less weight before the Board of Equalization than an appraisal. All evidence you submit will be admissible, however, as directed by the Utah State Tax Commission, we will allow the evidence to speak for itself.
Anyone who violates any of the provisions of UCA §61 is guilty of a class B misdemeanor punishable by a $1,000 fine and up to six months in jail and shall be ineligible to apply for a registration or certificate for a period of one year from the date of his conviction of the offense. [UCA §61-2b-33(1)]
For more information see:
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