Fighting back against property taxes
The slowing housing and real estate markets seem to be causing trouble for everyone. There does not seem to be any good news coming in about the state of America’s housing market; and now we have even more bad news in terms of taxes.
As home values slowly decline, we find that there is one thing we would think would decline with price but is actually rising. And that thing is property taxes.
As the market continues to slow, property taxes continue to rise.
An October 9, 2006 article by Gerri Willis of CNNMoney.com and posted on Yahoo’s Finance page, “The hottest part of the housing market: Taxes,” looks into ways to fight back against sky-high property taxes.
“Homeowners across the country are angry about their property taxes, and it's no wonder. Skyrocketing home values and sticky-fingered politicians combined to push property tax collections up 35% from 2002 to 2006, according to the U.S. Census Bureau.”
“That's double the rate of personal income growth, and the consumer backlash has intensified. Tax-cut proposals are being considered in at least 15 states, the National Taxpayers Union reports.”
Many people are now going to their local politicians and city councils to try and thwart the growing property taxes, but there are other things you can do for people who do not necessarily want to “write to their congressman,” so to speak.
Instead, you could start with your very own tax bill, instead of trying to change the whole system. Many people do not realize there are various errors on their tax bills that cause their property taxes to be higher.
Most tax offices are understaffed, so when an assessor visits your house, they may not do the best job possible and may overlook or assume certain things about your property that causes taxes to be higher.
“The American Homeowners Association (AHA) estimates that 60% of homes are assessed too high, so it pays to scrutinize your assessment line by line. Ask yourself these questions: Are the basics right? Number of bedrooms? Baths? A finished basement? Lot size?”
After you have made sure your assessment does not contain any easily seen errors, you should check out records of similar properties and your neighbors to be sure you are not paying too much.
“Your assessment is often based on what your home would sell for (other times it's the replacement cost), and when you look around your neighborhood you may find very different tax burdens.”
If you have found a disparity in your tax assessment, the best thing to do is to go straight to your assessor with the disparity.
“Your new tax assessment should include information on how long you have to contest it - it's often 60 to 90 days after getting your notice. Few homeowners fight back, but 70% of those who find an error do walk away with a lower tax bill, according to the AHA.”
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