“Being able to admit you’re wrong is important, but so is standing up for yourself when you’re right.” – American author Suzy Kassem.
If you think your property tax assessment is incorrect, you owe it to yourself and your wallet to file that appeal, as a successful appeal can keep hard-earned dollars in your pocket. While appealing your property tax assessment may seem challenging, with proper preparation and guidance, you can potentially achieve a fairer valuation and significant savings. So let’s get you prepped! Here’s How to Appeal a Property Tax Assessment: A Step-by-Step Guide.
- Know How Your Property Tax is Calculated
Your property tax is calculated by multiplying your home’s assessed value by the local tax rate. While higher property assessments generally lead to increased taxes, the impact can be mitigated by slower home price appreciation. Additionally, local tax rates can influence your bill, so if your municipality lowers rates, you might see a decrease or a smaller increase in your property taxes. Some jurisdictions assess property value at a percentage rate of market value; if you get the same treatment as everyone else, an appeal based on value alone wouldn’t apply. Most homeowners receive property tax assessment notices at the beginning of the year (some exceptions include Florida, below).
- Understand the Common Reasons for Appealing Your Property Tax Assessment
Here are the most common reasons why American taxpayers file a property tax assessment appeal:
- The assessed value of the property is believed to be higher than its fair market value.
- Property description discrepancies. This can happen if your property’s record card shows incorrect or outdated information, like the wrong square footage or number of bedrooms or bathrooms; in some cases, the assessor may correct the error without an appeal.
- Inequitable assessment. This occurs when your property is assessed higher than similar properties in your area.
- Recent improvements. If you’ve significantly improved your property in the last few months, the assessment may not accurately reflect the increased value.
- Purchasing a property below assessed value. If you paid less than the assessed value for your property, you may have grounds for a successful tax appeal.
- Calculation errors or misinformation. This could happen if the assessor made calculation errors or used inaccurate data.
- Exemptions or abatements. Your property may be entitled to exemptions that were not properly applied.
It’s important to note that the ownness is on you to prove that the assessed value is wrong, and the reasons outlined for filing a property tax appeal can vary by local laws and regulations. Another important FYI: some municipalities have revenue-neutral property tax assessments, meaning that even though your property tax assessment is higher, this doesn’t necessarily mean your tax bill will increase.
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- Do Your Homework and Be Informed About the Appeal Process
When you make your in-person property tax assessment appeal, you’ll only have about 15 minutes to present the facts so you need to be prepared. Your homework before attending the appeals board hearing should include:
- Checking the accuracy of your assessment, including calculations and your property description
- Ensuring that all eligible property tax deductions and exemptions were applied, such as credits based on income, or status as a disabled person, veteran, or senior (varies by state). Note: tax breaks and rebates aren’t automatic, you’ll need to apply and provide proof of eligibility
- Identifying at least 5 comparable properties in your neighborhood
- Making adjustments for the differences between any of these properties and yours. Check neighborhood property cards to compare general home features
- Comparing your property’s assessment to recently sold homes similar to yours on realtor websites
- Establishing that your assessment is truly unfair, and if so, trying to make an informal appeal to the assessor first, and if unsuccessful, filing an appeal
- Knowing the deadlines and legal requirements for filing an appeal
- Talking to experts who can offer advice or assistance, along with considering the services of a nationally certified appraiser. Be wary of law firms and other services, as they’re likely to take a large percentage of any property tax savings you’re entitled to
- Having a written summary of your case, including the evidence you’ve gathered on comparable properties, sales data, photos, and appraisals
- Attending a property tax appeals board hearing before your hearing to learn what to expect during the appeals process
Remember to keep calm and be professional when presenting your facts during the appeal. It’s a good idea to rehearse your presentation a few times and get a critique from family members or friends to ensure it’s straight to the point.
- Be Prepared for the Results of Your Property Tax Assessment Appeal
There can be 3 outcomes from your appeal:
- Your property tax assessment appeal is denied and remains as is
- You win the appeal and your tax bill is lowered by hundreds or perhaps thousands of dollars
- You lose the appeal and your property tax assessment goes up due to previously undisclosed details you shared during the appeals process, such as a finished basement or a swimming pool that didn’t appear on the assessment beforehand
- Information for Property Tax Appeals in Florida
Florida property owners get a heads-up pre-tax notice every August, known as a Truth in Millage notice, or TRIM for short. This allows time to examine the estimated property value and file an appeal, if necessary. Similar to the above, the appeals process will involve:
- Informally discussing your issues with the county’s property appraiser’s office to see if blatant errors can be corrected without an appeal
- Filing a petition with the county’s Value Adjustment Board (VAB); the general deadline for filing is mid-September and there is a nominal fee required
- Gathering all of your information and attending a VAB hearing
- Filing an appeal with the Florida Circuit Court or the Florida Department of Revenue if the VAB’s decision isn’t in your favor
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