Comments on: Appealing Our Property Tax Re-Assessment

By: Danielle

Danielle — Tue, 29 Apr 2008 15:45:11 +0000

This makes me very curious, we just had an assessment done as well. I wish you luck and hope you let us know the outcome of this letter.

Deck, underground sprinkler, patio, minor landscaping, and some bricks along the driveway… There are currently 3 houses nicer than ours for sale on our street so I should be able to get some price points to compare in the next little bit.

By: Pam

Pam — Thu, 24 Apr 2008 20:00:51 +0000

In California, because of Proposition 13, the county can only fully reassess the entire property upon a sale. In the case of substantial renovation project, they usually increase taxes based upon one percent of the cost of the renovation work.

Also, in California, you can do what is called a Proposition 8 appeal. This appeal is for a temporary reduction in assessed value, if your property is now worth less than is assessed value due to a deterioration of the economy.

By: Sam

Sam — Wed, 23 Apr 2008 19:21:43 +0000

I successfully appealed a property tax assessment on vacant land that we own in Mass. It was pretty easy to do because the only real issues were how much land we owned and whether or not the land has a water view (it does not) and then I documented the land value for similar lots (non-water view) in my same neighborhood. I got about $200,000 knocked off the value and reduced the assessment.

On the other hand, comparing home values gets tricky. I\’m sure it depends on your individual taxing district but in many districts a brand new (read renovated) kitchen is worth more (and therefore taxed more) than an original kitchen in a comparable house. So if the next door house that sold (your comp) was built in the 50s and never had any upgrades or renovations it might, again depends on your taxing district – some go simply by square feet, not stand as a valid comp.

Good luck!

By: Joshua

Joshua — Wed, 23 Apr 2008 17:28:56 +0000

Don has it right about maryland. Thank the Lord I live in West Virginia(who benefits greatly everytime maryland elects a new liberal gov., not to step on anyone’s toes, but i’ve witnessed it first hand), but I work in Maryland so I hear about the tax setup. It is crazy, especially if you live in Cumberland(Allegany County). Fed+State+County(which is very high for the area)+City(which is also very high for the area)=the poor folks that live here get screwed on a regular basis. After see this mess, I will never own squat in Maryland, as it would just be taxed away.

By: Gayle

Gayle — Wed, 23 Apr 2008 17:24:22 +0000

Initial County Assessments are not usually done on an individual property basis, but by neighborhood and with broader market trends. Absolutely call, write, email your County Assessor’s office to request a second, detailed valuation.

By: Steve

Steve — Wed, 23 Apr 2008 16:58:51 +0000

Not sure where you are but some states/regions have statutes requiring that the county take the house off your hands at the assessed amount under certain conditions if you dispute it.

By: Don

Don — Wed, 23 Apr 2008 14:56:02 +0000

Well, here’s what’s going in in Maryland. Not sure of your state…

In Maryland there is a Homestead Tax Credit and in the past most principal residences were automatically given the Homestead Tax Credit when assessing the amount of property tax you owe.

However, starting this year, our wonderful new Democratic Governor has included in the new tax legislation that was recently passed a provision that requires that you now have to request the tax credit by filling out an application. In other words the tax credit has changed from an automatic opt-in to an automatic out-out.

It is a nice little political trick to raise additional tax revenue from unsuspecting folks who don’t hear about this and lose their tax credit.

In Maryland, each property is on a three year rotating tax assessment schedule. If your property was assessed this year you should have already received your tax assessment statement. This statement should have included a letter that explains the homestead tax credit and how to submit an application to get it.

I just found out about this and wanted to let you all know in case you didn’t realize this was happening and/or (like me) didn’t read the letter that came with your tax assessment.

CHECK OUT THE WEBSITES FOR INFO AND PAPERWORK.

http://www.dat.state.md.us/sdatweb/real.html

By: Curt at PennyJobs.com

Curt at PennyJobs.com — Wed, 23 Apr 2008 14:49:33 +0000

I just got my letter in the mail and the city has reduced the value of my home by $3000, but just last week the local newspaper run an article on the front page saying that the average home has dropped by $20,000. Talk about getting screwed.

By: nickel

nickel — Wed, 23 Apr 2008 14:02:58 +0000

Yeah, the first step in the appeals process is a written request. If they don’t budge, then I can request a hearing. For now I doubt there’s much need for a professional. I can always bring in the big guns at the hearing if necessary. I might consult with our realtor, though. Things are so slow right now that she should have plenty of time to help out.

By: Momma

Momma — Wed, 23 Apr 2008 13:31:54 +0000

Depending on where you are, the letter may be all you need to have them reassess the property value. Often times they don’t want to go to the expense of having the appeal process go to a hearing. Good luck and be sure to let us know the outcome.

By: Frugal Dad

Frugal Dad — Wed, 23 Apr 2008 12:53:19 +0000

Since most of these assessments are “drive-bys” without any real appraisal of the actual property it is a good idea to challenge your tax bill when it jumps. I agree with dogatemyfinances on the idea of getting your own detailed appraisal to challenge the tax assessor’s figure. Hope they come to their senses!

By: geo

geo — Wed, 23 Apr 2008 12:45:48 +0000

It’s definitely worth a try. I successfully appealed my reassessment a few years ago. Go into your hearing with plenty of numbers and clear logic, presented in a level-headed, reasonable manner and you are likely to prevail. The sale price of the neighbor is relevant even if it sold after the artificial deadline.

Bring a copy of the Wall Street Journal, too, to remind them of the recent, um, blip in the housing market…

By: dogatemyfinances

dogatemyfinances — Wed, 23 Apr 2008 12:42:15 +0000

I’m not sure how much money you are talking about, but if it’s a lot, it might be worth hiring a professional.

My neighbor paid $300 and got her house reduced by 100K. That’s standard practice here, and they just ignore homeowner whining.

By: Don

Don — Wed, 23 Apr 2008 11:02:40 +0000

Which state are you in?