Hal's Mortgage Blog

For the most part, the value of real estate has plummeted. But why have property taxes risen over the past few years? The short answer: Owners have not regularly appealed their tax assessment—and even fewer people know that they have the option to do so.

The Wall Street Journal reported that taxpayers have filed about 24,000 lawsuits (so far), protesting their assessments. The National Association of Realtors® also estimates that almost 60% of all homes are over-assessed. And the odds are that your tax bill has not been adjusted

downward—if the value of your home is declining!

First, check with your county tax assessor—that’s where it all starts! Each county has their specific set of rules and procedures that you must follow in order to appeal the assessment value of your home. They usually have a form for you to complete; a list of supporting documents that you will need to submit and only certain dates to present your case.

Second, find out how property values are assessed (Independent appraiser? County employee? Based on the sales price of neighborhood properties?)

Third, determine how often your county re-assesses the values. (Every year? Every 5 years?)

Fourth, review your assessment notice for errors—i.e. lot size, square footage, number of baths, size of garage, recent re-zoning in your area, new utility easements, etc.

Finally, make sure that you have applied for all the “property tax credits” that your county/state allows—such as a mortgage exemption; low-income residents; disability credits; old-age exemptions, etc. Get a list of exemptions from your Assessor’s office.

The American Home Owners Association (www.ahahome.com) sells a Property Tax Reduction Kit for around $30. It’s a good guide to follow—but you’ll still have to meet the requirements and rules of your local government’s tax officials.