Education >> Taxes, Taxes, Taxes

Unhappy With Your Property Tax Bill? Appeal!

From Inside Personal Finance

Have your property taxes gone up a lot lately? For most home owners, the answer is yes, because state and local governments are strapped for cash. As a result, they’ve been raising property value assessments. 

If you feel that your home is being taxed beyond reason, you really can fight city hall. How? By appealing your assessment. If you are successful, you’ll save money year after year. And that lower tax liability will make your home more attractive to potential buyers when you’re ready to sell.

The burden is on you to prove that your assessment is unfair. It’s worth noting that, via this process, you are not complaining about your actual property taxes (that’s another story). Instead, you are appealing your assessment, which is what your local government says your home is worth. Thus, by lowering the assessment, you lower the tax.

In general terms, here are the steps to appeal your assessment:

1. Call your county assessor’s office, and speak to someone in the reassessment office. Ask when appeals are heard, and make an appointment. Depending on your jurisdiction, you might have only a few weeks each year in which to file an appeal. In your county, it may already be too late for you to appeal this year.
   
2. Get your property appraised. If you recently bought the home or refinanced, your last appraisal is sufficient. But if it’s more than several months old, you’ll need a new one. Expect to pay $350 for it. Your appraisal should reveal the property’s fair market value.

But don’t be fooled when you discover that your assessment is for less than the appraised value. That’s because counties often play games with assessments. For example, in Virginia’s Culpeper County, assessments are based on 85% of fair market value. In other counties, the percentage may be as low as 10%. Find out the percentage your county uses -- because assessments that are less than market value can still be too high.

3. Decide which appeal strategy to use:

a. Market Value. If the appraised value is less than the assessment, you probably have a case.

b. In Line. If three houses similar to yours in construction, age, square footage, and lot size have a lower assessment, you can argue that your assessment is not in line with other comparable houses.

4. Prepare your documentation. Neatly fill out the county’s forms, and make one copy for each person on the appeals panel. If you are arguing Fair Market Value, bring your new appraisal -- and the appraiser, if you can. If you are arguing In-Line, bring copies of county records for your house and for each comparable house. (The records are available at the county courthouse; some counties offer the data online. While you’re at it, check to see that the data about your house is accurate.) Make sure you submit your documentation within the appeals board’s deadline, which is often a week or more before the hearing date.
5. Arrive early to the hearing. Appeals are open to the public, so arriving early gives you the opportunity to observe the process.
6. During your appeal, act professionally. Be polite and organized -- members of the appeals board are people, too (and often, volunteers or appraisers, rather than county employees). Present only facts, not opinions. And don’t stop with a request that your assessment be reduced; suggest a specific, more appropriate amount. Take notes in case you are not satisfied with the decision, which may or may not be rendered at the meeting. If you lose, you can appeal by making an appointment with the Board of Equalization, or some similar body. If you lose again, you can take your case to court, such as the local Circuit Court or Tax Court. You’ll have to decide if the amount you might save is worth the time and money in filing these appeals.

Back to Previous Page