County officials will be considering belt-tightening moves following a $193 million reduction in appraised property values approved by the Baldwin County Board of Equalization in an ongoing review of property tax appeals.

The reduction, representing 2,232 parcels predominantly consisting of condominium owners’ appeals, is part of more than 10,000 appeals yet to be heard by the board.

Al Thompson, chairman of the Board of Equalization, said reductions in appraised value have been applied to 82 percent of reviewed appeals.

The BOE’s report also prompted Alabama Department of Revenue officials Monday to become more involved in BOE hearings and consider incorporation of their findings in appraisal methodology to make assessment figures more consistent with BOE rulings.

ADOR Commissioner Tim Russell, a former Foley mayor who was appointed three weeks ago by Gov. Bob Riley, chaired an update on the state’s review Monday of all parcels in the county and tax appeal hearings currently being conducted by the BOE.

Also in attendance were legislators, and members of the Baldwin County Commission and Board of Education, all concerned about ad valorem tax contributions to their operational budgets.

About $115 million in property taxes has been collected, according to state figures. About $30 million is outstanding on appeal and not all of those taxes will be collected due to predicted reduced values on some parcels.

Revenue Commissioner Phil Nix said 14,297 delinquent tax notices, representing $12 million, were mailed last week and he expects a 95 percent return. Property owners who do not respond will face a property tax sale in late spring.

Al Thompson, chairman of the Board of Equalization, said the review process may not be completed by June. He asked Russell for two state hearing officers to assist in the process, and said his goal was to schedule 200 hearings a day.

“We can’t work five-day weeks because we have to have time to look over the data we receive,” Thompson said. “Realistically, we can only schedule hearings for about three and a half days a week.”

Russell said he would consider adding personnel, but added that 22 state ADOR representatives out of 66 in the state, have been working in Baldwin County for the last five months.

Baldwin County Commission chairman Frank Burt said he expected $147 million to be collected, a 5 percent reduction in the initial $155 million total tax bill.

“We will collect $31 million more than last year, but we all are concerned about land values because that factor is bigger than Baldwin County,” Burt said, referring to decreasing values of some condominiums and other properties, as well as mortgage defaults and an economic slowdown on the national level.

“Next year, we will have to be careful when budgeting when we see the outcome of all this.”

Burt said the Commission made a budgetary reduction after being apprised of the record number of appeals.

“Next year, everyone will be concerned. By June, we will be in initial budgetary hearings and we want to be as conservative as we possibly can.

“We will be OK on ad valorem taxes, but we will be down a couple of million on taxes involving gas, mortgage sales, sales tax and other taxes.”

Baldwin County District Attorney Judy Newcomb urged state and county officials to “get meshed and give real weight” to values placed by the BOE.

“It will be good for the BOE and the state people to share information and what issues are taken into consideration in appraising property for next year.”

The BOE does not follow strict guidelines set by the ADOR for determining property value and that flexibility has created a cyclical pattern of appeals. Some property owners appeal, take their case to the BOE and often see an adjustment in their favor. The adjustment is deleted by appraisers following state guidelines during the next tax cycle, and appeals are regenerated.

ADOR representative Bill Bass said the state will begin considering land values reduced by the BOE and use that information in data analysis.

“The 2008 values may be less than what the BOE put on in 2007,” Bass said. We will begin working closely with the board. And we want to make sure that every property owner has a chance to be heard.”

County administrator Michael Thompson said the current setup creates a consistent pattern of change which is confusing to the public.

“Phil (Nix) has to adhere to state guidelines and citizens can appeal and go to the BOE,” Thompson said. “The BOE has flexibility and can drop taxes for various reasons.

“Phil could value correctly and the BOE may reduce taxes. The state has to correct that problem and determine how to better align the BOE with state assessment parameters.

“Otherwise, the BOE changes taxes, they are reapplied by state guidelines and property owners go back to the BOE on a yearly basis.”

State Rep. Joe Faust, R-Daphne, said he was pleased with the hearings and said taxes and insurance were of paramount concerns among county residents.

“I have had people come to me and drop their tax information on my desk and say it is inaccurate,” Faust said. “I cannot speak for them, but I appealed because my taxes on a rental property went up 125 percent.

“I dropped the appeal because I realized I could get the appraised value if I sold it.

“But what about the tenant? Do I go up on rent? If I do, where will they go? It’s the same for the insurance crisis. People can lose everything in a disaster because they can’t get insurance.”