Can You Change Your Home Property Tax Bill?
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Property tax is assessed by local governmental agencies and generally based on the estimated value of the property.
During the past few years, most homeowners saw their property values plummet decrease but not necessarily the corresponding taxes.
Unless challenged the tax bill most likely didn't change along. But you don't have to suffer in silence and continue paying taxes based on inaccurate valuation.
How to Challenge the Tax Assessment
If there's enough of a difference between the current value and the assessed value of your home to make it worthwhile, then you should consider challenging the assessment.
The process to change the assessed value depends on where the property is located and is based on local laws and processes.
Contact your tax collector to understand the procedure and how to initiate the re-valuation.
Where I live, the assessment appeals process is detailed on the county website. Homeowners can even submit the application for reassessment online.
Be aware that there may be a filing fee associated with the application. Commonly, the request is decided by a local citizen review board.
You may not even need to attend a hearing unless the board disagrees with the request. It is important to continue paying all tax bills due during the appeals process or face late fees and penalties.
Appealing the Assessment Decision
To influence the review board, homeowners should attend the hearing and present their “case” for changing the assessed value. It is important to be prepared and organized for the presentation.
Bring sales information based on the valuation date that supports the request. Remain calm and focus on the evidence versus emotion.
There is a good chance for success if the comparable sales are lower.
Tax Bill Results
Many friends and family in our state have had their property tax bill adjusted due to the extreme change in value in California. Some didn't even apply and the county automatically adjusted the assessment.
A smaller number of homeowners have had it adjusted down more than once. This is a temporary change as the bill will increase along with property value gains over time.
It appears that will be a slow process as least in the near future. If your property's valuation is too high consider appealing it and saving yourself some money.
Thoughts on Property Taxes
Readers, have you applied for a reassessment or has your tax bill dropped?
hoto Credit: Digitalnative
I sent in our appeals and I’m currently waiting to hear back. I doubt they will give us a break, but at least I tried.
Are they not approving requests there? In California they are generally approved because there’s so many comparable sales that are lower.
Good luck!
I recently sent in our appeals as well. I don’t think we will get a break either, but it never hurts to try.
Robert, I hope if you don’t get a break it’s because you’re property is already assessed in line with the comps.
I just did the paperwork for my parents and my boss. I couldn’t believe how easy it was! I haven’t received an answer yet though
We had to file paperwork with the tax collector to transfer our tax basis from our previous home to this one (a one time deal in California for people over 55) and it took six months to get it processed!
One can DEFINITELY lower their prop tax bill. In fact, I did so for a couple properties twice for three years in a row. The goal is to get the properties assessed as close to ZERO as possible by highlighting the worst pieces of dumps as comparables. It works!
Cheers, Sam
Sam, the only reason I haven’t applied is because we’re paying taxes on an assessment value that is many times lower than the actual value. Thanks to Prop 13!
My mother has been able to lower her tax bill by challenging the assessment. It definitely helped her to at least try. Great post Kay Lynn!
@Robert & Evan: I hope the tax assessment works in your favor.
Thanks, Elle! That’s great that you mom benefited as well.