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There are ways to lower property taxes by challenging property tax
assessments when they are found to be inequitable or erroneous. Although
the assessor has no hand in budget spending within a taxing district, they do
determine the assessed value of all real property, and in some states personal
property.
Property tax bills are generated to support city/county services to
taxpayers. Basically, the bill is generated by multiplying the assessed
value of a property times the tax rate for the district where the property is
located.
Taxpayers who can demonstrate that the assessed value on a given property is
too high can possibly lower the tax bill for that property.
Detailed below are six simple, but effective actions taxpayers can take in
order to make a successful argument to lower the assessed value on their
property:
- Review the current assessment from the county assessor's office and look
for obvious errors with regard to size, description or condition of the
property in question.
- Compare the assessed value of the property in question with similar
properties in the same neighborhood and look for discrepancies. Assessments
are public information and are available at the city/county assessor's office
or via internet access through the assessor's web site.
- Check recent sales prices of homes in the same neighborhood that are
similar to the property in question. These prices are also public
information or can be obtained from a local Realtor or via internet access to
the assessor's web site.
- Have a new appraisal performed by a reputable certified appraiser.
- List factors that could decrease the value of a property as of the
assessment date. Factors that could lower a property's value are
deteriorating condition, undesirable neighborhood influences like smells, air
quality or heavy street traffic and declining market prices.
- Be sure to take advantage of special exemptions. Some states provide
tax reductions for veterans and senior citizens. Some states also
provide reductions for historic buildings and special energy efficient
systems. areas called urban revitalization or tax incremental financing
districts also may provide some incentives for tax reduction.
Documentation of your case before an appeal board should include photographs
of the property in question and a complete explanation of any detrimental
factors affecting the property value.
You should contact your local assessment office for rules and procedures
governing the assessed valuation appeal.
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