Fight for a Property Tax Reduction
Did you know that in 2006, it was estimated by the National Taxpayers Union that 60% of all property owner were paying more than their fair share of property taxes? As of this writing surely that number has increased to perhaps 80% to 90% as property values have dropped across the nation. Getting a property tax reduction is not that complex, though you do need to know the procedure.
It’s further estimated that only 1 out of 50 property owners actually fight to get a tax reduction, even though most of these owners would most likely win some type of savings. And depending on the value of the property and state it’s located in, the saving can be tremendous. Even more appealing the savings go on and on, year after year, so it is normally well worth the owners time to investigate this.
Even if you only save $500 per year, you’d save $5,000 over a ten year period… It’s found money.
Property Tax Reduction, Known as a Property Tax Appeal
The process to fight for a property tax reduction is known as a property tax appeal. Basically you would put together a presentation which would challenge your cities assessment of the value they deem your property to be worth. They way you do this is by using comparable recent sales, also known as comps, to show the city official that your assessed value is higher than the market value.
For example, if your assessed value is $350,000 and the comps you provide show that similar properties to yours have recently sold for $275,000 you certainly have a case and should be able to save a considerable amount of money.
However… as any appraiser or property tax consultant would they you, putting together a solid presentation takes some knowledge of how the process works. You have to really know how to pick comparables. You have to know the intricacies of the process, because your city does not want to give you a reduction. And they are actively looking for ways to throw out your appeal.
Bottom line, your city is fighting hard to keep its tax base fat. They don’t want to give up programs and or to be under the microscope of accountability that the rest of us have to live under. The city officials are smart and they do this every day. SO, if you go before them with a mediocre presentation or weak comps they will toss out your appeal. They often look for technicalities, like being late to the council meeting or having comps sold under “distressed” situations, etc. To win you need to “play the game” and be prepared.