Although several localities have specific mechanisms, almost all have a process for appealing or aggrieving property taxes. In most cases, you can do this yourself, or you can hire someone else (or a company) to do it for you. Why would anyone grieve over their real estate taxes? One reason could be that most of your neighbors do, and you will suffer financially if you don’t. Another is if you think your home is being assessed for more than it should and therefore you’ll pay more taxes than you need to or should. Regardless of their reasons for doing so, every landlord should realize that they have certain options and rights, and this article will attempt to outline 3 of the basic steps to appeal and correct something that could negatively affect you.
one. Comparative Market Analysis (CMA): Before you can claim that you are being overcharged, you must create and present a basis for your belief. In almost all localities, one must stock up on realistic, relevant, and comparable housing, and compare what they are charged in taxes to what you pay. For example, if you can locate 5 or 6 houses, which are similar in size, location, property, condition, etc., and their assessed values vary significantly from your house, you have created the best initial basis for appeal. If you’re able to do it yourself, you’ll get the most benefit, but if you can’t, or don’t have the time or inclination, contact a reputable company to take care of this for you. In many cases, these companies will charge you up to 50% of your savings, but remember that is still much better than what you would otherwise pay, etc. Also, you will only be charged the fee, if you receive a reduced assessment, and savings!
2. Show what others pay in taxes (or are assessed): Once you’ve identified the other relevant properties, show how much less they may be paying than you. This is what you file as your complaint, etc.
3. Complete the necessary forms/documents: Depending on your location, this process can be quite simple or more complex/complicated. In either case, you must obtain and correctly complete all necessary forms and documents. This is another reason why many people choose to use one of the companies that provide this service.
While it is your responsibility to pay your property taxes, it is not your responsibility to pay more than you fairly should! If you think you are paying taxes unfairly, relative to your neighbors, follow the complaint or appeal process.