We all hate taxes. They really suck to pay and they often go to things you don’t need or want or like. But, you do enjoy driving on nice roads, I suspect. Maybe your kids go to school. Maybe you like having a police force. Some taxes just need to be paid and you should be happy for all the great things living in the US gives you, but you shouldn’t have to overpay your taxes.
The tax system is set up to empower and require the taxpayer to take care of themselves. Taxes will be highest for people who aren’t paying attention or don’t care. The system is set up to incentivize taxpayers to do certain things the government likes. The incentive is reduced taxes. The government wants you to have correct valuation of your property, so it has a mechanism for you to argue what the true value should be. Here are the steps to do so. Keep in mind that they may vary by jurisdiction.
- Read your assessment notice. The jurisdiction is required to send you notice of your new valuation. It will be increasing because if it went down, you would be happy and wouldn’t dispute it. On this notice will be the new valuation as well as the time you have to appeal. Watch that date very carefully. If you miss it you will be out of luck.
- Consider whether it’s worth it. Valuations will almost always go up, but usually not by a huge amount. It takes time and money to appeal, so don’t do it if your property tax increase is small. Sure, you will feel sad about this, but if it will cost you more to fight it, then save that money for another day.
- Get evidence of other property valuations. The #1 best way to successfully appeal is to find other valuations that were made. Look for properties that are similar to your own. Think of this similarly to when you were purchasing. Look at number of beds, baths, garage stalls, square footages, etc. This evidence can be other assessments or property sales. You may need to pay a real estate agent for help here.
- Look for errors. Often, the assessor had something about your property incorrect, like was valuing for 4 bedrooms when there are only 3. You will want to argue why your property is like the 3 others you found whose values didn’t go up as much as yours.
- Find areas of decreased value on your property. Perhaps there has been deferred maintenance or some new structural problem that adversely affects the value. The assessor might not have known about it.
- Take this information to the assessor. Simply presenting this information in a calm, friendly way might be enough to change the assessment.
- Submit an appeal. If #6 didn’t work, then you need to do the paperwork. This will be variable depending on where you are at, so read the instructions carefully. You may have to go in front of a board and argue your case. Probably you won’t hire an attorney due to the cost, but you might, if the taxes took a huge increase.
- Get legal. This is your last resort. You can sue the jurisdiction and go to court. Consider the expense whether doing this.
- Free inside tip: Administrators will often ask you, “If you were to sell today, what would you be asking?” Think about your answer carefully before this is asked. Here’s what I’d say: “We all would like top dollar and asking price is usually higher than final sale price, but I’d look at all the comps (like the ones I showed you), and come up with a reasonable value.” Boom
Remain calm and humble when dealing with these administrators. You’ll have much better luck if you politely show them the error and ask them to fix it. I’m sorry this is happening to you, but you can do something about it. Good luck.
