How to Effectively Appeal Your Property Tax Increase
In recent years, many homeowners have faced rising property taxes largely due to increasing housing prices and adjustments in local tax rates. However, property tax assessments are not always final; homeowners have the option to appeal in order to achieve potential savings.
Understanding Property Tax Trends
According to recent data from Realtor.com, the median property tax bill in the United States for 2024 has risen to $3,500, reflecting a 2.8% increase from $3,349 in 2023. The impact of property tax varies significantly based on geographic location, with certain areas experiencing notable hikes.
For instance, homeowners in New York City face the highest median property tax bill at $9,937. This is followed closely by residents in San Jose, California, who pay a median tax of $9,554, and those in San Francisco, where the median is $8,156, as highlighted in a report by LendingTree.
Potential Savings Through Appeals
Realtor.com estimates that over 40% of homeowners might save at least $100 annually by contesting their property assessments, with an average potential saving of approximately $539 per year. As Pete Sepp, president of the National Taxpayers Union Foundation, points out, “You’re banking on several years of savings.”
Common Reasons for Over-Assessment
Property assessments are intended to reflect the value of a home for tax purposes, and often include various factors apart from the market value. Due to discrepancies, many properties may be over-assessed, leading to inflated tax bills. Errors in assessment data, such as inaccurately recorded square footage or incorrect bathroom counts, may contribute to this issue.
Steps to Appeal Your Property Tax Assessment
Should you wish to challenge your property tax assessment, follow these systematic steps to increase your chances of a successful appeal:
1. Verify Your Current Assessment
Start by reviewing your property assessment records. Local government assessors typically provide access to this information online. Ensure that details like square footage and property features are accurate. Gather documentation, such as contractor invoices or inspection reports, to support your case if discrepancies arise.
2. Compare with Neighboring Properties
Research comparable homes in your neighborhood to see how their tax assessments align with yours. Tax records are public, and differences in tax bills may indicate whether your home is over-assessed.
3. Investigate Possible Tax Exemptions
Many jurisdictions offer tax exemptions that could reduce or eliminate your property tax liabilities. Common exemptions can apply to senior citizens, veterans, active military personnel, and low-income households. Check eligibility criteria in your area.
4. Be Aware of Deadlines
Stay informed about the deadlines for filing an appeal in your locality. These deadlines are often specified in fine print on your assessment notice. Typically, you will have a window of 30 to 45 days to file your appeal.
5. Seek Professional Assistance If Needed
Consulting professionals, such as real estate agents or appraisers familiar with your area, may offer valuable insights into property values and assessments. Before hiring anyone, ensure you understand their fees and services.
Conclusion
Property tax assessments can often lead to overpayments. By understanding the appeal process and gathering the necessary evidence, homeowners can take proactive steps to potentially lower their tax liabilities. Given the substantial sums involved, the investment of time to explore these avenues could yield significant long-term savings.