When your property tax assessment seems to be incorrect, you may be entitled to contest it and fix any errors. Learn how to contest property tax mistakes here.
What you will discover:
What is the procedure for collecting property taxes?
How can I appeal a mistake in my property tax assessment?
Can I challenge my property tax assessment many times?
Do I still have to pay my property taxes if the valuation is in dispute?
Property taxes are levied on personal property, such as your house or unoccupied land. These taxes are collected by states, counties, cities, and other local governments. The money is then used to pay schools, fire agencies, road maintenance, and other government services. If your property tax statement seems to be excessive or includes a mistake, you may need to file an appeal or request that the county recalculate your property taxes to reduce the amount you owe. The following are some frequently asked questions concerning property taxes and appealing a property tax bill.
Table of Contents
What is the procedure for collecting property taxes?
A municipal authority will normally start by determining the worth of your property to determine how much you owe in property taxes on it. They may use a variety of ways to determine this value, and your local or state legislation will detail how real estate is evaluated in your location. The valuation of your property as determined by the local government agency or tax assessor is commonly referred to as the assessment of your property.
Following the valuation of real estate, most authorities provide property tax exemptions to certain categories of persons. Property tax exemptions may lessen or remove the burden of property taxes, making house ownership less expensive. You may check your local or state legislation to discover if any exemptions apply to you. Some popular property tax exemptions are as follows:
Exemption for senior citizens: decreases property taxes for seniors of a specific age. This exemption may help elderly persons on fixed incomes reduce the expense of property ownership.
Disability exemption: cuts property taxes for persons with disabilities and makes it simpler for handicapped people on a limited income to buy a house.
Homestead exemption: a typical exemption for persons who reside full-time on their land.
Most states compute property taxes by deducting the value of any exemptions from the property value and then multiplying that figure by the property tax rate. Property tax rates are normally set at a fixed amount of tax per $1,000 of taxable property value (for example, $2 of tax for every $1,000 of taxable property value). Assume we determine the property taxes for a $200,000 assessed value home with $50,000 in exemptions in a county having a tax rate of $2 per $1,000 of taxable property value. The owner would be required to pay $300 ($200,000 less $50,000 = $150,000, which is then multiplied by the 0.002 property tax rate). A government employee will do the calculations and issue you a bill.
How can I appeal a mistake in my property tax assessment?
If you disagree with the amount of your property tax bill, you may be entitled to make an appeal to your local government body. In general, you may request that they reconsider the assessed value of your property, any exemptions that were rejected or not applied, or an inaccurate tax rate. They may, for example, have applied a commercial tax rate to your residential property.
The procedure for filing an appeal varies by state, but it normally begins with the agency that received the bill. This is a less formal procedure than a court hearing. Nonetheless, it is typically a good idea to review the appeal with a lawyer to evaluate whether you want legal assistance in your individual circumstance.
What you will need to bring to the appeal hearing depends on where the property is situated and why you are appealing. Errors are the most common sorts of appeals. If the assessor utilized the incorrect tax rate, miscalculated the size of the property or land, or failed to include exemptions that should have been included, these issues may frequently be remedied with a phone call, presenting evidence, or visiting with the assessor’s office.
If you are appealing the assessed valuation of the property, you may be required to demonstrate why it is incorrect. Some localities will accept third-party real estate appraisals or expert witness testimonies concerning the property’s worth. Unless you have prior experience appealing property tax assessments in your region, it is typically advisable to employ a professional who knows how to establish the mistake and can assist you in making a compelling case. Furthermore, challenging a property tax assessment may occasionally result in an increase in the property tax payment rather than a decrease. This is something to consider while determining whether or not to appeal your property tax bill.
Can I challenge my property tax assessment many times?
The particular regulations vary depending on where the property is situated, but in general, you will begin your appeal with the assessor’s office or the office of the official who submitted the tax bill. Frequently, the bill contains information on how to challenge the assessment. There is generally always a deadline for filing an appeal with the local government agency, so make sure you submit your appeal before that time.
If you are dissatisfied with the outcome of your appeal with the local government office, most states offer a property tax board that reviews disputes between property owners and the local government office. Again, appeals to the property tax board are normally required within a particular time frame. These appeals are more official, and you may benefit from hiring a lawyer to defend you.
If, after appealing to the property tax board, you still do not agree with the assessment, most jurisdictions allow you to appeal to a state court.
Do I still have to pay my property taxes if the valuation is in dispute?
Even if you are challenging the amount of taxes levied, most agencies require you to pay part or all of your assessed property taxes. In Indiana, for example, you are usually obligated to pay the whole amount of the previous year’s tax payment. In other cities, such as Nashville, Tennessee, you must normally pay the amount of your undisputed property taxes in order to pursue an appeal. Clallam County, Washington, for example, requires full payment of a property tax bill when it is due and will give a refund if an appeal is successful.
Even if you are appealing the assessment, it is prudent to pay your property taxes on time. Failure to pay property taxes before the due date may result in penalties, interest, and ultimately a tax auction or foreclosure on the property.
Property tax regulations vary greatly depending on where you live in the United States. It is important to understand how your property taxes are calculated in order to avoid getting overcharged.
