Alabama Department of Revenue reports released earlier this year concerning skewed property tax appraisal methodology in Baldwin County and a $35 million increase in appraisals from last year may prompt thousands of Baldwin County property owners to file formal appeals, according to officials.

Meanwhile, Baldwin County Revenue Commissioner Phil Nix said Monday that the 135,000 notices, representing $154 million in taxes, were based on state guidelines accurately applied in assessing properties.

Property owners have until Aug. 15 to file an appeal.

ADOR is continuing to compile a report concerning appraisals in the county and a meeting has been tentatively set Aug. 20 to discuss the report with the County Commission, Nix and members of the Baldwin County Legislative Delegation, according to county administrator Michael Thompson.

Earlier this year, the ADOR released a report showing dramatic errors in assessment values for properties which sparked phone calls from citizens and meetings between legislators and county officials.

Nix said Monday the state office reviewed erroneous information which affected assessment conclusions. Nix said he provided the state with accurate numbers which brought the assessment within state guidelines for accuracy.

Thompson said Tuesday the new figures improved accuracy of the appraisals, but the numbers still fell short of state-mandated guidelines.

Thompson said he expected to receive a preliminary ADOR report next week, prior to the Aug. 20 meeting where he expects state officials to review results of the report and provide recommendations.

Lewis Easterly, ADOR secretary, said Tuesday the report was not finalized and declined comment. He said an initial meeting June 6 with the legislative delegation, Nix and county officials was a “staff assistance visit” in which Baldwin County was designated as a model for assessment.

Each of the state’s 67 counties also will be evaluated, Easterly said.

“We are stressing that the ADOR is concerned about equalization throughout the state,” Easterly said. “Some values will go up and some may come down in economically depressed areas. In Washington County going north, assessments might remain static.”

Nix said the state’s initial report used “bad sales” which negatively affected appraisal accuracy. As an example, he cited sales of properties at reduced rates among friends and relatives.

“They should have used arm’s-length sales between disassociated sellers and buyers,” Nix said. “Our numbers and our accuracy are in line with the state’s guidelines.”

State Rep. Steve McMillan, R-Orange Beach, who has met with state officials and reviewed the earlier report said Monday the evaluation was not an attempt to raise property tax income.

“The intent of all of us is to get in compliance and equalize taxes,” he said. “The ADOR is charged to be sure every county equalizes taxes. There can only be one accurate set of numbers and I will immediately review the state’s new report.”

McMillan said he expected as many as 10,000 appeals to be filed.

During an Aug. 1 meeting between county officials and legislators, State Rep. Joe Faust, R-Fairhope, said his phone was “ringing off the hook” after property owners received notices.

“Faust said he had received numerous calls from Foley residents citing increases of more than 50 percent.

“Many people have lived here all their lives and they are being priced out of the area,” Faust said.

He reminded about 100 citizens in attendance to pursue homestead exemptions and recently enacted legislation which freezes assessments if they are age 65 and have lived in a dwelling for at least 10 years.

County Commissioner David Ed Bishop, R-Fairhope, said property values were higher prior to hurricanes Ivan and Katrina. But severe property damage along County Road 1 and the Eastern Shore area caused property values to decline.

“People complained about property values going down when they tried to sell them,” Bishop said. Then I heard people say taxes increased 300 percent or more and that is traumatic.

“I tried to help clear debris after the storms and I am supportive of getting a systematic approach so the increases are not so traumatic. There are lots of people on limited or fixed incomes and the increase hurts. They have been telling me and I have been listening.”

Property taxes last year were $119 million. In 2005, $94 million was assessed.

Nix said the increase is a reflection of growth countywide, especially spurts in Elberta, central and north Baldwin.

Nix said assessments for condominiums and other coastal properties have remained constant, despite a decline in price listings in the last year.

“A condo may be listed at $600,000 but only assessed at $400,000,” Nix said. “We don’t go by listings prices, but sales prices.”

Property owners have until Aug. 15 to appeal. To file online, go to co.baldwin.al.us and click on Revenue Commission. Forms also are available at courthouses in Bay Minette, Foley and Fairhope.

Nix said property owners can appeal and provide documentation later.

“Some people told us they can’t get all the information to us by Aug. 15,” Nix said. “They can appeal and give us the documentation later.”

After Aug. 15, Nix said all appeals will be examined and double checked by the appraisal staff.

An in-house review may result in changes in tax bills. Unresolved disputes will be viewed by the Baldwin County Board of Equalization. The next step is filing lawsuits in circuit court.

Last year, 3,000 tax protesters filed appeals. About 1,800 unresolved cases went to the BOE, which made about $2.6 million in adjustments for taxpayers, Nix said.