The National Taxpayers Union says nearly 60% of homes in the United States are over-assessed. This means millions of homeowners are overtaxed and paying too much money to the government.
Property taxes are based on our home's real property value. A number of factors including its size, number of total rooms, number of bathrooms and area market value all play a factor to determine that "real value".
Most counties regularly update the assessed values of properties on their tax roles. They go through new building records (like home additions), drive by and view your property for obvious changes, and take into consideration the volatility of the real estate market. As an example, if you live in an area that has a boom in popularity and home values have skyrocketed, your taxes will reflect that and go up.
Just as a boom affects how much you pay, a down turn in the real estate market affects it also. With a down turn, you will pay less tax. In the US , we have had drastic drops in home values and consequently, the odds are good you should be paying less than in the past. However, due to the recent major loss in property values nationwide, many county tax assessors are struggling to keep up with deflating property values.
So what should you do? Here are some tips:
1. Do not use services that offer to do the necessary work for you to find out if you are indeed, over taxed. Most likely, you can do it on your own and save money.
2. Contact your county office responsible for assessments by calling them or visiting their website. Then find how to gain access to records of your home or property. Counties, even in the same state are separate entities and may have different processes and procedures. As an example, in my county I can access everything about my home on line.
3. Find out everything listed about your home. You may find that their records are inaccurate and you have been over taxed for years. This is fairly common. If you notice discrepancies such as an extra room, (my home had an extra bathroom listed) find out how to appeal to the county to change your incorrect information and consequently, your tax bill. Most county assessor offices provide appeal-related information free, as well as free instructions and forms. Nationally, about 40 percent of appeals are successful.
4. Get information on at least five neighboring homes that are similar in terms of age, style and features. If the assessments on similar properties are lower by 10% or more, file an appeal based on uniformity.
5. Importantly, verify that you have received any breaks you may be entitled to such as a reduction for seniors, veterans or the disabled. In many States, these are called a Homestead Tax Exemption.
6. Find out if your present real value assessment /taxes reflect the price plunge of the past few years.
If you would like to keep more of your money in your pocket, try doing some research and you may be pleasantly surprised.
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