Between 30 percent and 60 percent of taxable real estate has an inflated assessment. Moreover, typically fewer than 5 percent of taxpayers dispute the assessed value of their real property.¹ Giving these statistics, there is a good chance that you are paying too much in property taxes.
For homeowners and business owners who think their local county government may have assessed their property's value too high, there are ways to appeal. You could potentially win a lower assessment, which may save hundreds or even thousands of dollars annually in future taxes.²
The procedures and requirements for challenging the assessed value of your property will differ by county, but you should consider the following general factors.
Determine Whether an Appeal Is Justified
First, you should check to see if there are any obvious errors in the assessment (e.g., is the square footage correct?). If you find an outright error which affects value, you may be able to simply bring it to the assessor's attention and get it corrected.
One good way to support inaccurate assessment claims is to compare your home's assessed value to similar homes in your neighborhood. A professional market evaluation will be of great help.
Consider the Cost-Benefit Ratio
Appealing your assessment may cost you money, depending on the complexity of the process and whether you choose to use professional resources. You are the ultimate judge of weighing the costs related to some uncertain financial reward, but know the cost-benefit before you start. For instance, saving $500 per year in property taxes is well worth an investment of $1,000 in professional resources.
Use an Independent Appraiser
Your appeal will have less credibility if a local real estate agent makes the market evaluation. A comparative appraisal will carry considerably more weight when a credible third-party expert performs it.
Follow All the Rules
Appeals have precise deadlines and procedures. You need to meet them; otherwise, you run the risk of losing out on the opportunity to have your appeal heard for another year. Call your local officials or visit the relevant website to familiarize yourself with the appeal process requirements.
Whether it is property tax, short or long-term capital gains tax, or even income tax, there additional strategies to minimize your taxes on your real estate. To learn more, please contact Adam directly at 310-497-9226 or via email at firstname.lastname@example.org.
1. National Taxpayers Union Foundation, 2018
2. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security—copyright 2021 FMG Suite.