5 Smart Property-Tax-Saving Strategies
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Americans are up in arms against property taxes. In recent years, California, Colorado, Illinois, New Jersey, and Oregon, to name a few, have been swept up in anti-property tax sentiment. And little wonder: property taxes have risen by as much as 37% a year since 1989. You do not have to mount a wide scale taxpayer revolt to cut your own property taxes, though. By following the five tips below, you may be able to stage your own personal tax protest and save money, too.
1. Find out whether you qualify for any special property tax breaks. Many states reduce property taxes for being 65 or older, a veteran, or disabled. Make sure you take advantage of any general homeowner’s exemption as well.
2. Check the accuracy of your home’s assessed value. Review your property record card on file at your local assessor’s office. This card lists such characteristics as lot size and number of rooms. If you find an error on the card –the assessor overstated your home’s square footage, for example –a visit to the assessor can usually win you a tax reduction.
3. If you do not spot an obvious error, determine whether your home’s value has been overstated. Maybe your house has suffered damage or housing prices have plunged in your area. To find out if your local tax assessor for your home’s official assessed value. Compare that number with the result you get when you multiply your property’s fair market value by your town’s residential assessment ratio. That figure, which is also available from your assessor, is the percentage of fair market value subject to tax. To estimate your home’s fair market value, ask a real estate agent or your assessor for recent sales prices of comparable homes in your neighborhood. If the assessed value you computed is less than the official assessed value, it’s time to appeal. Roughly half of homeowners who do so are successful, often cutting their bills by 10% or more.
4. Document your case. No tax official is going to take your word for it when you plead for a reduction. If you’re fighting your assessment, you will need written verification of the sales prices of three to five comparable homes. Drive by those houses to make sure they are similar to yours. Then photograph the exteriors to strengthen your claim. If your home has deteriorated or been damaged since the last assessment, take pictures of it, too.
5. Appeal an unfair assessment. Make sure you follow your local appeals procedure to the letter. The first step is usually an oral plea before the local assessor. If that does not succeed, you must fill out an appeals form and request a hearing before the local, county, or regional board. Ask for the board’s schedule and try to attend one meeting to get a feel for the process before your appeal is heard. When it’s your turn, bring the documents and photographs you have assembled to back up your oral testimony. If the appeals boards reject your challenge, you can go to court or the state review board, but you will probably need to hire a lawyer.
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