3 Steps to Cutting Property Taxes

By Marshall Loeb

RISMEDIA, March 21, 2008-(MCT)-With home prices retreating, you’d think property taxes would too. But don’t count on it-by the time you see lower taxable values, your local government may be in enough of a squeeze to raise the rates that apply to those taxable values.

While you may not be able to control local tax policy, you can at least do something to see if your property-tax assessment is realistic. According to Pete Sepp, an official at the National Taxpayers Union, as many as 60% of homes are overassessed.

From the April issue of Kiplinger’s magazine, here are three ideas for making sure you’re not overpaying–and for making your case if you are:

- Look for errors. Find out how your district levies taxes–on 100% of the market value or some fraction of it–by calling the assessor’s office. Fractional assessments are less common than they used to be, but plenty of localities still use them. Especially at 70% or 80% of value, owners may not realize their assessments are out of line.

Go to the assessor’s office or website to see the property card that lists the details of your home. Check each item for mistakes, from the number of bathrooms to the square footage. Valuing properties is an inexact science; in addition, when paper records were transferred to computers, many errors were made or retained. If there’s a mechanical error, the assessor may fix your assessment on the spot.

- Check the neighbors. Pull the property cards for neighbors who have similar homes in terms of age, style and features. Try to compare at least five properties with yours. If the assessment on similar properties is lower by 10% or more, you have a good case based on uniformity. The assessor is responsible for maintaining equity among owners.

- Make your case. The rules for appeals vary from place to place, but no matter where you are, you’ll need evidence. Property cards and photos can be especially useful if you’re comparing the condition of your home with others. Consider getting an independent appraisal as well; check the rules in your jurisdiction before laying out a couple hundred dollars or more to pay for one. You generally have 30 to 60 days after receiving your tax bill to appeal and present your evidence for an administrative review. If you aren’t granted a reduction, the next level of appeal is an independent board. This is typically free, but may involve a filing fee of $20 to $50.

Your last resort is a judicial hearing, usually in circuit court. But taking your appeal that far involves filing fees, legal fees and possibly a witness fee for an expert appraiser, the cost of which may outweigh the relief you’re seeking.

For more information, including forms to help organize your appeal and contact information for your state, get the American Homeowners Association’s Homeowner’s Property Tax Reduction Kit for $29.95, or free with trial membership at www.homeownertaxcut.com.

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