How to Lower Your Property Taxes
Determine how your area assesses homes., Study your property tax assessment., Look for structural errors on the assessment., Decide if the assessment value is inflated., Look for holes in the property record., Compare your home to others in your...
Step-by-Step Guide
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Step 1: Determine how your area assesses homes.
Not every municipality assesses property the same way.
Before you start appealing your taxes, figure out how your area assesses property.
Some base it strictly on market value, others base it on home and land value.
Some places subtract some value for depreciation.
Another common way to assess value is to use recent sales of comparable home in the area., Contact the local assessor's office and request to view or receive a copy of your property tax assessment card.
This card sometimes is a physical copy you can pick up, while other counties provide them online.
When you receive it, study the details very carefully.Make sure to request your property tax assessment before you tax bill comes.
There are certain deadlines you will have to meet for filing your appeals.
Once you receive your tax assessment, you may only have 30-120 days to appeal.
If you wait until your tax bill comes, it may be too late., Check to see if the assessor made mistakes about the structure of your home.
Did he make an error in square footage? Did he say you had 4 bedrooms when you only have 3? Make sure any special features of your home are correct, along with the acreage.
Only heated, livable areas should be counted in the square footage of your home.
Errors about the structural specifications of your home can lead to significant reductions in your taxes., Determine if there are factors causing your property assessment to be inflated.
Was your appraisal conducted when market values were higher than present values? Find out if the property value in your neighborhood has gone down recently.
That could lower your taxes.
If you have recently purchased the house, think about the price paid.
If the price you paid for the house is lower than the assessed value, you might be able to lower your property taxes., Don't just look for errors; look for things the assessor left out.
This relates mostly to negative aspects of your home that could help diminish the value.
Does the property record card report a backyard that always floods, a wet basement, a leaky roof, or cracked walls?Having a detailed property assessment that includes both positive and negative qualities may help you lower your taxes.
Other things that might lower your value are air conditioning systems that need repair, foundations that need repair, or leaky plumbing., When you request your property card, also look at property cards of similar houses in your neighborhood.
Compare their assessment values to your own.
If your assessment is much higher than similar homes in your neighborhood, you might have a basis for lowering your property taxes.
The more examples and the more homes you can use with lower assessment values, the stronger your case for appeal will be.
When deciding what is a comparable home, look at ones with similar square footage, the same number of bedrooms and bathrooms, and a similar age.
Try to look at houses that are as close to yours as possible for an accurate comparison.Is the construction on your home lower quality than others? Do you have a frame house instead of a brick house? These factors can influence your assessment.
Also look at homes in your neighborhood that are larger, more expensive, or in better shape.
See if your comparison is lower than theirs.
If those homes have the same assessment value as yours, your value may be inflated., Sometimes, assessors can make mistakes.
Look at the homes your house is compared to.
Are they similar? Or are they nicer, in better shape, in a better neighborhood, on a quieter street? Using homes that are not similar to yours in just about every way can inflate your home's assessment., Contact your local assessor's office to figure out what needs to be done to appeal the cost of your property taxes.
You want to make sure to follow their instructions exactly so your case won't be thrown out on a technicality.Ask the office what procedures should be followed if you find a mistake on the property record card or if you find your property isn't assessed at the right amount.
Ask them where is the best place to find information on comparable properties.
This can help you have the correct information when you go to the hearing.
Inquire about deadlines for filing an appeal this and next year.
Also ask them for any other details you need to know as you file your appeal., If you aren't sure you can adequately appeal your case, hire a tax lawyer to do it for you.
Many attorneys require 1/3-1/2 of your savings the first year, but they also may not charge you if your case is rejected., If you don't mind putting in some hours and doing a bit of leg work, you can appeal your own case.
When you go to the appeal, have all of your documentation organized and ready to present.
This includes any discrepancies on the record card, uneven comparisons to other similar homes, and any other evidence you compiled during the fact-checking stage.
Bring copies of record cards, photographs, sales documents, and any other documents that supports your case., When you've collected all your evidence, present it to the assessor first.
Sometimes, things can be adjusted and your property taxes can be lowered by the assessor.
Showing documentation where they made errors might be enough to get things sorted out.
If that doesn't work, then appeal to the appeals board., If an assessor is coming to your house, don't bother trying to make it at its best.
Don't hide the hole in the wall, the carpeting that is coming up in places, the cracks in the ceiling, or the sections of your lawn that won't grow grass.
Make sure the property record reflects your 50 year old bathroom installation and the kitchen appliances from the 1980s. , When the assessor comes to your home, don't let them wander around alone.
Go with them.
This way, you ensure that they don't just focus on the positive aspects of your home, but also notice all of the things that will bring down the property value., Search for tax breaks in your state that will help lower the cost.
Some states allow some homeowners to shield partial value from taxation.
You may be eligible for tax breaks based on other factors, such as being a senior citizen, a veteran, or disabled., Any structural change to your home can affect your taxes.
Adding a pool, a deck, a shed, remodeling the kitchen, or putting down new carpet can raise the value of your house, and therefore, your property taxes.
If you are planning on appealing your property taxes, refrain from any remodeling until afterwards.If you want to do some work on your home, investigate how much the new additions will increase your taxes. , One reason property taxes increase is due to state and local budget cuts.
The local governments use some of the revenue from property taxes to pay for schools, libraries, police and fire departments, and public services.While homeowners have limited influence in these matters, getting involved in local budget affairs and voting may make a difference., If you have vacant sections of land you bought to build that dream vacation or retirement home, you might consider selling it to help reduce your property taxes.
This land factors into your property taxes and increases the amount you pay.
If you own significant acreage and your property taxes are too high, sell off some of the land.
By reducing the number of acres you own, you reduce the value, which reduces your taxes.
If you have recently inherited property, consider selling it as soon as possible.
You are responsible for the property taxes on that property even if you did inherit it., Property taxes are based on the town or area's tax rate.
This varies from place to place.
Some counties and states have higher taxes than others.
If you are looking to buy a house, look into the property taxes in the areas you are thinking to buy.
Purchasing a house in an area with a lower tax rate can save you money.
If you already own a house, you might think about moving to another area if your taxes are too high. -
Step 2: Study your property tax assessment.
-
Step 3: Look for structural errors on the assessment.
-
Step 4: Decide if the assessment value is inflated.
-
Step 5: Look for holes in the property record.
-
Step 6: Compare your home to others in your neighborhood.
-
Step 7: Make sure your home was compared to similar homes.
-
Step 8: Determine the appeals process of your area.
-
Step 9: Hire a tax lawyer.
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Step 10: Present your own evidence at the hearing.
-
Step 11: Start by contacting the assessor
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Step 12: then go to the appeals board.
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Step 13: Don't make your house look perfect for the assessor.
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Step 14: Walk with the assessor.
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Step 15: Find a tax break.
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Step 16: Limit the remodeling on your home.
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Step 17: Vote for elected officials and school budgets.
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Step 18: Sell off empty lots of land.
Detailed Guide
Not every municipality assesses property the same way.
Before you start appealing your taxes, figure out how your area assesses property.
Some base it strictly on market value, others base it on home and land value.
Some places subtract some value for depreciation.
Another common way to assess value is to use recent sales of comparable home in the area., Contact the local assessor's office and request to view or receive a copy of your property tax assessment card.
This card sometimes is a physical copy you can pick up, while other counties provide them online.
When you receive it, study the details very carefully.Make sure to request your property tax assessment before you tax bill comes.
There are certain deadlines you will have to meet for filing your appeals.
Once you receive your tax assessment, you may only have 30-120 days to appeal.
If you wait until your tax bill comes, it may be too late., Check to see if the assessor made mistakes about the structure of your home.
Did he make an error in square footage? Did he say you had 4 bedrooms when you only have 3? Make sure any special features of your home are correct, along with the acreage.
Only heated, livable areas should be counted in the square footage of your home.
Errors about the structural specifications of your home can lead to significant reductions in your taxes., Determine if there are factors causing your property assessment to be inflated.
Was your appraisal conducted when market values were higher than present values? Find out if the property value in your neighborhood has gone down recently.
That could lower your taxes.
If you have recently purchased the house, think about the price paid.
If the price you paid for the house is lower than the assessed value, you might be able to lower your property taxes., Don't just look for errors; look for things the assessor left out.
This relates mostly to negative aspects of your home that could help diminish the value.
Does the property record card report a backyard that always floods, a wet basement, a leaky roof, or cracked walls?Having a detailed property assessment that includes both positive and negative qualities may help you lower your taxes.
Other things that might lower your value are air conditioning systems that need repair, foundations that need repair, or leaky plumbing., When you request your property card, also look at property cards of similar houses in your neighborhood.
Compare their assessment values to your own.
If your assessment is much higher than similar homes in your neighborhood, you might have a basis for lowering your property taxes.
The more examples and the more homes you can use with lower assessment values, the stronger your case for appeal will be.
When deciding what is a comparable home, look at ones with similar square footage, the same number of bedrooms and bathrooms, and a similar age.
Try to look at houses that are as close to yours as possible for an accurate comparison.Is the construction on your home lower quality than others? Do you have a frame house instead of a brick house? These factors can influence your assessment.
Also look at homes in your neighborhood that are larger, more expensive, or in better shape.
See if your comparison is lower than theirs.
If those homes have the same assessment value as yours, your value may be inflated., Sometimes, assessors can make mistakes.
Look at the homes your house is compared to.
Are they similar? Or are they nicer, in better shape, in a better neighborhood, on a quieter street? Using homes that are not similar to yours in just about every way can inflate your home's assessment., Contact your local assessor's office to figure out what needs to be done to appeal the cost of your property taxes.
You want to make sure to follow their instructions exactly so your case won't be thrown out on a technicality.Ask the office what procedures should be followed if you find a mistake on the property record card or if you find your property isn't assessed at the right amount.
Ask them where is the best place to find information on comparable properties.
This can help you have the correct information when you go to the hearing.
Inquire about deadlines for filing an appeal this and next year.
Also ask them for any other details you need to know as you file your appeal., If you aren't sure you can adequately appeal your case, hire a tax lawyer to do it for you.
Many attorneys require 1/3-1/2 of your savings the first year, but they also may not charge you if your case is rejected., If you don't mind putting in some hours and doing a bit of leg work, you can appeal your own case.
When you go to the appeal, have all of your documentation organized and ready to present.
This includes any discrepancies on the record card, uneven comparisons to other similar homes, and any other evidence you compiled during the fact-checking stage.
Bring copies of record cards, photographs, sales documents, and any other documents that supports your case., When you've collected all your evidence, present it to the assessor first.
Sometimes, things can be adjusted and your property taxes can be lowered by the assessor.
Showing documentation where they made errors might be enough to get things sorted out.
If that doesn't work, then appeal to the appeals board., If an assessor is coming to your house, don't bother trying to make it at its best.
Don't hide the hole in the wall, the carpeting that is coming up in places, the cracks in the ceiling, or the sections of your lawn that won't grow grass.
Make sure the property record reflects your 50 year old bathroom installation and the kitchen appliances from the 1980s. , When the assessor comes to your home, don't let them wander around alone.
Go with them.
This way, you ensure that they don't just focus on the positive aspects of your home, but also notice all of the things that will bring down the property value., Search for tax breaks in your state that will help lower the cost.
Some states allow some homeowners to shield partial value from taxation.
You may be eligible for tax breaks based on other factors, such as being a senior citizen, a veteran, or disabled., Any structural change to your home can affect your taxes.
Adding a pool, a deck, a shed, remodeling the kitchen, or putting down new carpet can raise the value of your house, and therefore, your property taxes.
If you are planning on appealing your property taxes, refrain from any remodeling until afterwards.If you want to do some work on your home, investigate how much the new additions will increase your taxes. , One reason property taxes increase is due to state and local budget cuts.
The local governments use some of the revenue from property taxes to pay for schools, libraries, police and fire departments, and public services.While homeowners have limited influence in these matters, getting involved in local budget affairs and voting may make a difference., If you have vacant sections of land you bought to build that dream vacation or retirement home, you might consider selling it to help reduce your property taxes.
This land factors into your property taxes and increases the amount you pay.
If you own significant acreage and your property taxes are too high, sell off some of the land.
By reducing the number of acres you own, you reduce the value, which reduces your taxes.
If you have recently inherited property, consider selling it as soon as possible.
You are responsible for the property taxes on that property even if you did inherit it., Property taxes are based on the town or area's tax rate.
This varies from place to place.
Some counties and states have higher taxes than others.
If you are looking to buy a house, look into the property taxes in the areas you are thinking to buy.
Purchasing a house in an area with a lower tax rate can save you money.
If you already own a house, you might think about moving to another area if your taxes are too high.
About the Author
Mary Patel
Creates helpful guides on crafts to inspire and educate readers.
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