Property taxes are often considered a necessary crime. Most of us don’t like paying for them, however, we are aware that without these taxes, local governments, safety services, and schools could not function properly or even at all.
Property taxes are based on the value of your home multiplied by the current tax rate. When you make repairs or additions to your home, your local government can reassess the value of your home and increase your property tax liability accordingly. Likewise, with many property values dropping across the country, property owners have the right to request a property value review which is called a revaluation. This reassessment can be carried out by a private company or by your local government. Often, requesting this service from your local government will be cheaper or even no cost.
Due to the recession and weak real estate market, many of us received automatic reassessments from local municipalities. Some might think this will result in lower property taxes for the year. Not so for most of us. For a city or county to operate, they need income from our homes. Therefore, most adjust rates to offset the lowered property value. I encourage all of you to research this to understand what your financial obligations are.
Before you get started, take a look at your current tax assessment. Check the measurements, square footage and description of the number of rooms or whether the basement is finished or not, etc. List any errors. You should also look at the property values of your neighbors. These can often be found online at your local auditor’s website. You can also get a quick overview of these values by visiting sites like Zillow or Trulia and searching for homes in your area. If the value is significantly lower than yours, that’s a good place to start by appealing your own property tax liability.
When considering requesting a property value revaluation, it’s a good idea to consult with a real estate attorney who can help you decide if this is a wise choice. A real estate attorney may have worked on similar cases and have the knowledge and experience to let you know if the end result is worth the effort.
A real estate attorney can also help you ensure that there are no miscalculations in your current property tax rate and should also be familiar with the property tax appeal process in your area. Working with an attorney who specializes in real estate, such as Felix Nihamin and Associates, can save you from making a costly mistake when considering filing for lower property taxes.