Homeowners in several counties have filed complaints with state officials after receiving letters that they say appear to be from a state agency and promise a review of high property taxes for a $99 filing fee.
The state Department of Assessments and Taxation warned homeowners earlier this month to be on alert for official-looking letters that were sent by a private company and charge a fee to appeal a property assessment. Homeowners can file appeals with the state for free.
The Maryland attorney general's office has begun reviewing a handful of complaints about Cockeysville-based Maryland Property Review Board and is mediating to recover payments for some homeowners, said Karen Straughn, director of the mediation unit in the consumer protection division. Straughn said her office has received 10 complaints, including from a few people who paid the fee.
"There is the right to do this without having to pay $99," said Straughn, who said her unit works to resolve consumers' problems rather than investigating businesses.
In an emailed response after the state issued its warning, Brandon M. Chasen, who owns Maryland Property Review Board, defended the company's practices.
"We provide a valuable service to Maryland homeowners by filing a petition for review of real property on their behalf, which includes but not limited to completing the extensive market research necessary to provide the state with the specific evidence needed to make a case for reducing the homeowners' property tax bill," Chasen said in the email.
He did not respond to requests for additional comment. According to state assessment records, the Property Review Board, based on Cranbrook Road in Cockeysville, is owned by Chasendavis LLC of 510 S. Eden St., the address of CrossFit Harbor East Gym, where Chasen is listed as a founder.
The firm's website said it sent notices, with the heading "real property over assessment" to homes after the company determined those properties' taxes were too high "due to comparable home sales."
Kim Frum, a spokeswoman for the assessments department, said the practice is not illegal, but she did call it "questionable."
Frum said she has heard complaints from seven homeowners in Baltimore, Anne Arundel, Montgomery and Prince George's counties but does not know how many letters may have been sent.
"In this particular case, they're charging you $99 for something that is absolutely free for you to do when you get your property assessments every three years," Frum said.
Lutherville homeowner Mike Davey received a letter late last month that said the state was overcharging him by about $1,346, an amount cited in other letters the firm sent to other homeowners, state officials said.
The letter said his property tax bill "is approximately $1,346 higher than comparable homes due to changes in market conditions and the assessed valuation of your property," Davey said.
The mailing, with an official-looking Maryland flag in the header, seemed to reflect the addition of a high-priced home under construction near Davey's home.
"That's what caught my eye," he said. "I thought it was from the state. Now I'm just ticked off that I got taken."
He sent the company's appeal form along with $99. After hearing about the state's warning, Davey attempted to get a refund. He has filed a complaint with the state and is hoping for a refund through his credit card company.
Frum said property owners typically appeal assessments to point out differences between their homes and comparable neighborhood homes used for comparison.
She said the Cockeysville company's letter also includes incorrect filing deadlines for appeals. The deadline to file is Dec. 31, not June 1 or July 15, as some of the letters say.
Property owners who believe their property is not valued at current market value can file an appeal when they get an assessment notice, by a petition for review or when they buy property between Jan. 1 and June 30.