How to Appeal Your Property Tax Assessment
By Brandon Cornett | 7/20/09
© 2011, All rights reserved
Nationwide, property values have fallen as a result of our housing crisis. Of course, this is a generalized statement. There are plenty of cities that have held steady, such as Round Rock, Texas where I live. If you live in an area that has seen big drops in property values, you might want to pay close attention to your property tax assessment — and appeal it if necessary.
Remember, the amount of tax you pay on your home is directly related to the assessed value of the home. The problem, of course, is that county tax assessments typically lag behind actual market values. In some cases, this works for homeowners. In other cases, it can work against you.
Let’s assume that my home was worth $300,000 two years ago. After the housing crash, my property value dropped to $210,000. If my county tax assessment is outdated (as they often are), then I’m paying taxes on an outdated and inflated value. In other words … I’m giving the government too much money! This is the kind of scenario where I would appeal my property tax assessment to bring it more in line with the current value. The question is, how would I go about this? Here’s how.
How to Appeal an Assessment
Did you know that most property tax appeals succeed, in favor of the homeowner? It’s true. If your appeal is based on hard data, there’s a very good chance it will be approved. So the first thing you need to do is understand that the dispute process usually works, as long as it’s based on solid data. You also need to realize that the process varies from one state to another, and even among counties in the same state. Regardless of where you live, you’ll probably benefit from the following steps.
- You should start with a visit to your county tax assessor’s office, or their website. I would visit the website first, because it probably has instructions on how to appeal property tax assessments — and it will save you a trip. A lot of counties have even developed an online appeals process (even the government can become web savvy, eventually).
- Secondly, you need to do some research to find out what homes are selling for in your area. You need to be looking at recent and comparable sales. “Recent” means those that have occurred within the last six months or so. “Comparable” means homes that are similar to yours in size and style. You can get this data from a local real estate agent, or by using a home value website like the ones discussed in this article.
- Lastly, you should research the process for property tax assessment appeals in your city / county. If you do a Google search for it, you should be able to find some info on local real estate agent websites. This is a great way to learn from the success of others, which will increase your own chances for success.
Taxes are a part of life in this country. Without them, we could not pay for our roads, our schools, our police and fire departments, and other public utilities. But nobody wants to pay more than their share. That’s why you should pay attention to your property tax assessment and appeal it if necessary. Good luck.