How to Appeal Property Taxes

Property Taxes; An Appealing Subject

“If you drive a car – I’ll tax the street, If you try to sit – I’ll tax your seat
If you get too cold – I’ll tax the heat, If you take a walk – I’ll tax your feet” – Tax Man, The Beatles

Generally in the past, 70 percent of all tax appeals were successful, however, only 7 percent of all homeowners actually take the time to appeal.

Average tax reductions, depending upon where you live in the U.S. fall between 3 percent and 10 percent of the existing tax bill. Therefore, if you are currently paying $5,000 in annual property taxes, upon appeal you could anticipate a reduction of $150 to $500 per year. Of course, as the years go on, this savings is cumulative and it is certainly worth a few hours of your time if you think you are in line for a tax reduction.

1.) Locate Your County Assessor! The first step to a successful tax appeal is to find out exactly what the process is where you live. You should contact the governing body for your local property tax assessor. In most cases you can find that information online by going to the website of your local County tax assessor’s office.

2.) Obtain Assessed Valuation Card: Each year homeowner’s should receive a “Notice of Proposed Assessed Valuation” of their property. This information, usually received in postcard or letter form, will have the address of your property, the PIN number and some other identifying information including the rate at which you are being taxed.

3.) Find Out if there is a Time Limit! Most counties have a time limit in which you can appeal your taxes so it would be in your best interest to begin investigating as soon as possible. In some counties there is a generous time period in which you have to appeal. In other counties, like Illinois Cook County, you have 30 calendar days to file a tax appeal from the date you received your assessment notice.

Getting a successful decision on a tax appeal in many cases comes down to Documentation! Documentation! Documentation! To take the worry out of the process, think of it as CSI Tax Dispute!

• So, step one: Contact your county Assessor’s office for deadlines and instructions on filing a tax appeal.
• Be Aware: Be aware of when the assessment is mailed in your county and what the appeal deadlines are. Write this on a calendar that you always use.
• Document: Gather together all documentation to make your case. Why do you think you deserve a tax reduction? If you recently purchased a home that was taxed as a $500,000 home and you recently paid $200,000, bring the property appraisal from your purchase along with your HUD (closing statement) that breaks down the value and how much you paid.
• Appraisal: If you have lived in your home for several years and have watched property values plummet, you may want to obtain a property appraisal completed by a property appraiser licensed in your state. Ask the appraiser to include all recent comparable home sales so that you can document lower home sales that affect the value of your property.
• What are comparable sales: Comparable sales are homes similar to yours in construction brick, frame, stone, aluminum siding, etc., age, square footage and lot size.
• Check Details: Is the information in your assessment correct? Check the PIN number to make sure you are paying taxes on the correct parcel of property. This seems outrageous but it happens more than you would think.
• Appeal Process: Most appeals are done in person in a court -like atmosphere and they are open to the public. Don’t be fearful, you are entitled to a dispute. Dress appropriately, be professional, bring all documents and copies of documents and also bring a notebook and pen to take notes.
• What if they say no? If the appeal does not come out in your favor, in most counties you can re-appeal. Be cooperative and plan to come back with more evidence. On the other hand if the dispute comes out favorable and your taxes are lowered, remember that you can appeal annually to keep the taxes at bay. Once you prepare for a tax appeal, keep all documentation together so you will be prepared next time.
• Use an attorney: You might consider using an attorney. Most tax appeal attorneys charge nothing if they are not successful. If successful, a fee of 1/3 to 1/2 of the annual tax savings paid one time is the going rate.

One final note; I urge you to appeal if you feel you are being unfairly taxed. However, do not pin your hopes of continuing to make your house payments on a tax appeal. Each county and school district have budgets that they set far in advance. If all of our property taxes were cut in half with the value of our homes cities all across the country would be bankrupt.

But go forth and appeal! Let me know how you come out and if this information was helpful! Remember, nearly 70 percent of all tax appeals are granted–however, remember that a successful appeal can save you an average of $500 per year. Keep expectations realistic and do not purchase a discounted home with the expectation of having the taxes cut in half. Be realistic!

We are all in this together. If you have been the victim of a financial scam please share it with me so I can warn others. If you have something to report or want to share your money saving tips, drop me an email or leave a comment!