Additionally, since local governments typically do not measure home values every year, property tax adjustments tend to lag behind changes in home prices. This means that a homeowner’s property tax bill may be based on an assessed property value which is more than what the property is currently worth.
Fortunately, there is a way for homeowners to lower their property taxes. If a property’s current tax assessed value is more than its fair market value, or is discriminatory in comparison to similar properties in the same municipality, a tax appeal may be warranted.
Homeowners cannot appeal their actual tax rate, which is determined by their local government. However, homeowners can appeal the tax appraised value of their property, which will likely require the use of an independent real estate appraiser.
Filing an Appeal
Some jurisdictions require that a tax assessment be off by a certain percentage before a property owner is eligible to file an appeal. Therefore, a homeowner should have an idea of what would be an accurate appraisal of their property’s value before filing.
Usually, there is a fee required to file a property tax appeal, but some jurisdictions will waive the fee for veterans, senior citizens and disabled persons. Generally, filing deadlines are one to three months from the date of tax assessment notification.
Since property tax appeal rules vary according to jurisdiction, homeowners should contact their local tax review board for details. Local government websites usually post property tax appeal procedure information and downloadable forms.
The Appeals Process
Once a property tax appeal has been filed, the local tax review board will schedule a formal hearing. In many jurisdictions, an informal review or settlement conference will be scheduled before the formal hearing. If the homeowner and the local tax authority reach a settlement at the informal hearing, the formal hearing is no longer necessary.
However, if nothing was resolved at the informal hearing, a formal hearing before the local tax review board is then required. Some homeowners represent themselves on appeal, while others choose to be represented by an agent. Some jurisdictions even allow for non-attorney agents to represent taxpayers.
If the appeal with the local tax review board is unsuccessful, some states allow the homeowner to appeal to the state taxation review board.
Preparing for the Review Hearing
At the formal tax review hearing, the homeowner, or the homeowner’s agent, will need to provide evidence that the current assessment is inaccurate and should be reduced.
It is not always easy for homeowners to persuade their tax review board that their current property assessment is too high. The legal presumption is that the local tax authority’s property value appraisal is accurate. It is up to the homeowner to rebut that presumption, which is going to require as much competent and credible evidence as possible.
Therefore, in order to build a strong case, it is important for a homeowner to provide documents or sworn statements for any evidence introduced.
Examples of persuasive evidence may include:
1.) An independent real estate appraiser to provide a written property value appraisal and to testify as an expert witness.
2.) Blueprints, deed records, photographs, a property survey, or a statement from a builder or independent appraiser to serve as evidence of inaccuracies in the tax authority’s property appraisal.
3.) The appraisal records of similar properties in the same municipality as evidence that the property in question was not treated equally.
4.) Recent and reliable sales data on similar properties in the same municipality to support the homeowner’s independent property appraisal.
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