Rising Property Taxes: What You Can Do to Lower Yours

Posted By: Admin
Author: auren Baier Kim
Wednesday, June 11, 2008 10:21 AM

Real Estate

Grappling with rising expenses and struggling to make ends meet, local governments – who rely heavily on property taxes for funding — are raising property tax rates, provoking anger and concern among homeowners faced with deteriorating home prices, increasing inflation and a likely recession, writes Conor Dougherty in today’s Journal.

In the long run, Mr. Dougherty writes, falling home prices could give homeowners a property-tax break by reducing the assessed value of their homes. However, he notes, appraisals often lag behind market conditions. So, many homeowners, believing the value of their property has fallen are pushing for reassessments.

But how to know if you’re being fairly taxed? The first step is understanding how property taxes are calculated in your municipality. Generally, property-tax bills are calculated by multiplying the assessed value of a home by the local tax rate. Some towns may assess homes at full market value, while others assess properties at a percentage of market value.

Brian M. Tracz, a New York attorney with his own private practice specializing in real estate law, recommends that homeowners use online real-estate sites like PropertyShark.com to research what neighbors with homes of similar sizes and like amenities are paying, as well as the assessed value of their homes. A visit to the local assessor’s office can reveal whether the data listed for your home is correct – e.g., if square footage and the number of bedrooms and baths is factual. “You want to make sure that you are being taxed for what you really own,” he explains.

If there are mistakes in your home’s records or if like homes are assessed at a lower value than yours, you may have grounds for an appeal. If your town allows private appraisals, you might also want to try hiring a private appraiser to evaluate your property.

If you do decide to file an appeal, you’ll need evidence to back your case, so have a copy of your home’s public records and any other supporting information (such as records for other homes) at the ready. The appeal process varies from jurisdiction to jurisdiction, so get details and deadlines from your local assessor’s office before making your move.

Readers: Are property taxes too high or on the rise in your area? Has anyone successfully challenged a property assessment? — Lauren Baier Kim