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You can challenge your local government, town or city hall on your property tax bill. Property tax increases are largely the result of rising home values, and they are not from the increase in taxes by local governments. And now that property values have gone down in most markets, there is a good opportunity to save money on your property taxes. Different formulas are used by local governments to calculate property taxes, but bottom line, the amount you need to pay in property taxes depends on a home's assessed value.
The National Taxpayers Union has estimated that over 60% of properties in the United States are overassessed, so people are paying too much in property taxes and these people need help. However, despite these growing property tax bills, less than half of homeowners will ever protest their assessments. That means most people are needlessly paying more in property taxes than necessary. The bottom line is that the appeal process is not as challenging as many homeowners fear.
If you really do not have the time to challenge you bills, you need to hire an attorney or property tax consultant to do the work. Most of these folks charge on a contingency basis, which means that they work for free, and they will not charge you a fee for their work unless they save you money. In that case they will only charge you a percentage of the property tax bill savings if they succeed in lowering your assessment. You should always try to hire on a contingency, and not someone who charges a flat fee or bills you hourly, so you do not need to worry about paying their bills unless you win.
Or find how to get help with delinquent property taxes, including information on installment plans.
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(Or view a step by step guide to challenging your property taxes. More.)
You first need to establish your timeline. When do your local assessments go out? When is the cutoff for appealing? You can quickly call your local tax assessor's office for help getting this information.
The appeals process and deadlines vary from locality to locality. So does the amount of time that you are permitted for to file an appeal. Sometimes a homeowner may have as few as 30 days to appeal. In other areas, you may have up to 120 days.
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If the local tax assessor will not meet with you (also note that some areas will not permit informal meetings), or if you do meet but still fail to reach a fair agreement, the next step you need to take is to protest the tax assessment.
Ask the tax assessor what the procedure is and what the deadlines are to file a protest. The assessor needs to help you with those questions. Be sure you follow the guidelines to the letter of the rules to ensure against your appeal is not dismissed due to a technicality.
Before your hearing, gather all your data, stats, and evidence and put it into order. For example, you may want to put the market stats and data into a spreadsheet or format that makes it easy for the officials to see the basis of your argument, and you should strongly consider collecting photos of comparable properties and their property taxes. Your presentation doesn't have to be as polished as a top notch lawyer, but being, and showing that you are organized, will help you put on the strongest possible case. It will increase your chance for success, and find out what percent of property tax challenges are successful. More.
Another idea is to consider sitting in on somebody else's hearing before your appeals date as you can see how the local board operates. You can also get a sense of what arguments don’t work, and that do work.
Even if the board doesn't rule in your favor despite your compelling presentation, you always take your case to court, but in many cases it will cost you more in fees and attorney bills than the amount of tax money you might save from paying. Many states also have a state appeals board where you can state your case if the local panel rejects your petition.
It is important to stay professional and composed and throughout the process.
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