Cutting Corners on Property Taxes

In today’s economic time, property taxes can be stressful for many families. The very thought of escalating property taxes have many homeowners wondering if they can make the payment. However, it does not have to feel this way. Over 50% of homes are found to be assessed higher than usual. There are steps you can take to save money when the next property tax date arrives. Read further to find out how you can take advantage!

Facts behind Today’s Property Taxes

Since home appraisal values have dropped more than 50%, many are not expecting higher property taxes. In fact, home property taxes have risen in recent years. In figures taken from the S&P/Case-Shiller Home Price Indices, prices on houses declined by 27% between 2006 and 2008. Coincidently, cities collected an increase of 12% in property taxes. County assessors routinely reevaluate properties in set periods.

These periods are usually every 1-3 years. However, some assessors revaluate properties every 5-10 years. In any year, you can appeal the assessment of your home within 30-90 days (depending on where you live) after you receive the tax bill. If you do not receive one, be sure to contact your city hall and request a copy of your bill. Contact your county assessor to see if there is a limit on how much the percentage of the property assessment should be off, before appealing. Then follow these three steps:

Check for Errors on Your Property Tax Bill– This can be done by researching your home data online or at the assessor’s office. It’s no secret that human error happens. Check for errors in the size of your home’s square footage, correct number of bedrooms and bathrooms, and the right parcel number. These all make a big difference in home assessment figures. If you find an error, request a form at the county assessor’s office to get it corrected.

Research Homes Around Your Neighborhood– Call a realtor within your area to help you gather tax information on comparable homes within a mile radius. You can also visit real estate sites online to gather these figures. You will need these figures to plead your case.

If your home assessment is at least 8-10% higher than other neighboring properties, you may have a case. Then, report your findings with your county’s assessor. It helps to remain calm when speaking with the assessor. If the assessor disagrees with your figure then you must make a formal appeal to proceed further.

State Your Case to the Board– After receiving the property tax bill, you will have 30-90 days to appeal. An administrative review will use your documents (the paperwork from step 2) to determine if your tax bill should be lowered. Make sure to include photos and/or repair costs if applicable. If you are not happy with the results then you can request a judicial hearing. However, be prepared to enlist the services of a property tax attorney or consultant. Since this can be a bit pricey, proceed if the savings you are asking for are significant enough to warrant a judicial hearing.

Saving on property taxes can be a simple procedure. With these steps, you are well prepared to cut corners on your property tax bill if you feel it is too high. Winning your appeal will mean paying lower taxes. However, if you lose your appeal, at least you will have all the necessary information to fight the next time around.

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