In parts 1 and 2 of this series, I discussed the basics of
successfully challenging your property tax assessment. Reducing the
assessed value of your property is your right by law. There are
services available in high tax states that will file a grievance for
you. Generally they charge an appraisal fee for your property and fees
that average 50% of your tax savings for the first year if successful.
While procedures and dates may vary in different geographical areas,
the procedures outlined are a good roadmap for assessment practices.
Since
appraisals are done by real estate appraisers, fees for this service
can vary in price. Appraisals can cost anywhere from $50 and up.
Appraisals are not always necessary, but can help you to win your case.
Evidence may be obtained from local real estate agents to support your
case. They will be glad to help you with data about sales in your area.
These sales should have occurred within 1/2 mile of the subject
property. Try to get at lease 3 comparable sales. Properties that most
closely match yours in size, style, age and proximity will be the best
ones to use to bolster your case. Photos of all of the properties are
helpful in proving your case and to show errors that the assessor may
have made.
The first thing to know is the day that grievances
must be filed. If you miss this day, you will have to wait until the
following year to file. The paperwork is not too difficult to fill out.
If you have a problem, the assessors office will usually help you with
the calculations. Be sure to read over the requirements to file, the
basis for the filing and the deadline for your submission. There are
specific grounds that are acceptable to file a case. These are outlined
on the forms that you filled out when filing your case.
Some
localities will require a small filing fee, at either the initial
filing or court fees if the case reaches that level. Most jurisdictions
will not require you to use a lawyer, even in court. I have found that
the judges are very helpful to homeowners and will try to guide them in
the proper way to submit their evidence.
The municipality that
has assessed your property will be at the hearing to explain the
assessed valuation that has been placed on the property. Often, they
will offer a reduction if the evidence is compelling either at the
local hearing or in court. You may accept the offer, make a
counteroffer, or let the judge make a determination. If you let the
judge decide, you will have to wait for several weeks for his
determination. I usually recommend that my clients try to negotiate a
settlement with the assessor rather than wait for the judge.
If
you have done your homework, you should be successful in reducing your
assessment. Keep in mind that any reduction in assessment will not take
effect until the following tax year.
One tip that can save you
money is that if you are having a house built, try to delay the
completion until after taxable status day. This date can be found by
calling the assessors office. This is the date that is used to
determine the state of properties as far as assessable status. In other
words, whatever state the property is in at that date, is the status
for assessment purposes. If the house is not completed until after that
day, you will not be assessed for the value of the house until the
following year,since it is not on the tax rolls for that year. You will
only pay taxes on the land.
Good luck in reducing your taxes. It is your right not to overpay on property taxes.
The author is webmaster at CTI Watches and at
Smith & Wesson-Luminox Watches, two sites that carry watches, and at Loan and Mortgage Information,
a resource for borrowers seeking good loan information. His newest
website focuses on Website development and promotion - getting the most
income out of your website.
