What You Should Know About Property Taxes

Every county in the United States maintains a tax assessor's office. The tax assessor is responsible for appraising the value of all real estate located within the county. The assessor is also responsible for keeping accurate records of ownership and location. The tax assessor makes an appraisal of a particular property, enters the assessment into the records and raises or lowers the property tax by how much the price has risen or declined. The Treasurer's office will collect the taxes, but the tax assessor is responsible for setting the rate.

Property taxes can rise or fall based on two different variables: the rate and the amount owed. Rising tax rates but falling property values may result in a lesser or greater amount owed. Conversely, rising property values and falling tax rates can have an equally uncertain outcome with regard to how much the homeowner has to pay. The worst situation is a rising property value and rising tax rates. Overall, these taxes are one of the most burdensome aspects of homeownership. Homeowners must be aware of the things they can do to raise or lower their taxes on their property.

A surefire way to raise the property tax amount owed is to make an addition or improvement to the home. Cleaning up the yard, improving curb appeal, repainting the exterior, any of these actions can result in a higher property value and thus a higher tax liability. The easiest way to avoid this is simply do not build. Alternatively, if a structural or cosmetic improvement must be made, the homeowner can check with the tax assessor's office beforehand.

An extremely simple way to lower property tax assessments is to go to the assessor's office and request a copy of the property tax record. Mistakes are more common than thought. If the homeowner finds a mistake on their record, the assessor is required by law to correct it. Sometimes an entire re-evaluation may be in order, as mistakes on the assessor's part can cost homeowners a lot in taxes.

Assessed values depend largely on the exterior attractiveness of the home. Curb appeal thus plays a major role in tax assessment. The tax assessor has a lot of leeway when taking improvements to external features into account. Again, the best way to avoid this is do not carry out improvements until after the assessment has been made. Or, simply do not carry them out at all and sit tight.


Let the assessor in when he wants to appraise the interior of the home. Denying him entrance may give him carte blanche to assign the highest value possible to the property. Unfortunately, this unconditional authority is law in most cities in the United States.

How To Minimize Your Property Tax Bill

Many people are aware of the numerous ways that exist to cut down the amount of income and sales tax you pay each year. However, less is known about property taxes. Based on the assessed value of your home, property taxes are typically paid to fund the local government. They can also pay for general services in the area such as schools, the police force, garbage collection or, unfortunately, a public deficit.

What many people do not realize is that, like with income and sales tax, there are a number of ways to reduce the amount of property tax you pay. Here are just a few ways to consider:

Make certain that the assessment on your property is accurate.

Your property's assessment value is typically determined by the state or local municipality and usually reflects a value lower than the home's actual market value. Double check the assessment to ensure that it is accurate and up-to-date, since mistakes can be made.

You can usually do this by comparing the assessed value of your home to those of other comparable properties in the area. Also, keep abreast of changing values; some cities are quick to adjust assessments when property values are increasing, but less punctual when values are declining.

Appeal the assessment on your home.

In most towns, over 20 percent of those who appeal their home assessment get a reduction.

If considering an appeal, be sure to first learn how the system works in your area. Call your town assessor to find out what the protocol is in such a case. Also, pull together any documents that show the age and condition of your home. This can include taking pictures of the house, floor plans, and gathering any records of home renovations.

Rezone your property.

In some cases, outdated zoning could lead to higher property taxes. By keeping track of the zoning laws in your area and how they apply to your property, you could get money. However, only consider rezoning if you are a long-term owner because it is a lengthy process and difficult to undo.

If considering pursuing rezoning, first know what kind of property you hold. Zoning laws differ for commercial and residential properties, as well as for undeveloped land. Make sure the zoning laws on your property are up-to-date and reflect the current development on the land.

However, be certain you have the approval of your neighbors before pursuing any kind of rezoning. Any kind of strong opposition from the neighborhood could make it difficult for a request to be approved or, conversely, their support could make the process much easier.

Legal and Legitimate Ways to Lower Your Property Tax!

There are always ways to try and save money and one of those ways is often overlooked by many homeowners and that would be property tax. Anyone knows that your property tax is based upon how much your home is supposed to be worth. In today's economy a lot of homes are going down in value and some may not know it but you can apply to get your property taxes lowered. The way in which the tax is lowered is going to vary from state to state but below is a basic guideline for you to at least get a start.

First off, don't sit there and think that the tax man is going to be the nice guy and come by and offer you a way to lower your property tax. Come on, you aren't going to find the nicest people in the world of collecting taxes. We all know where they stood back in the days of Jesus even. So as the value of your home continues to drop you need to do something about continuing to pay the same high property taxes, because no one else is going to do it for you. You're going to have to fight this battle on your own.

You will need to get yourself educated. When it comes to this kind of taxes it is really important that you are aware of the housing market and the situation that it is in, especially in your own area. You need to find out how much homes like yours are selling for in your immediate city and even on the block that you live in. You will need to put together some sort of record of the prices of real estate in the area as evidence to support your claim that your property taxes need to be lowered.

Next you need to get in touch with a local property tax assessor. You should ask them what the criteria is that they use to come up with how much you home is worth. If anything that they say doesn't seem to be in line with what the current market is showing then you need to challenge it. Make sure all the details that you have on your home is correct. It' not very uncommon for an assessor to make an estimate on your home about features you may not even have just to inflate the value.

You also should talk to a local real estate agent. You can get an official valuation done on your house by them. Also make sure to ask them for evidence of the sale prices of homes that are similar to yours that have been sold in the past 6 months. It is very important to find houses that are very similar to the one you own and that have seen their values drop. Make sure to do a report that includes all of the information that you get from the agent.

Once you have gathered all of your information you will then need to make an appeal at the property tax office. You will need to be ready to answer questions about your property and in relation to the appeal. They are going to do everything they kind to find a way not to lower your taxes.

Eight Ways to Lower Real Estate Taxes

Real estate or property taxes differ from state to state and city to city. About a quarter of the country's homeowners pay more than the fair share of real estate taxes yearly. In some areas, real estate taxes make up for the lack of income tax of a state while in others are high in spite of the claim of the state on the fruits of one's personal labor. An analyzer will determine if a home is over-assessed by taking into several factors such as number of bathrooms and bedrooms, age, quality of construction, condition of the home, square footage, grade and whether it has amenities such as a golf course of beautiful views.

Sadly, most homeowners are paying too much for their homes, thus it is time to learn how to lower your real estate taxes. Check out if the American Homeowners Association has all the information of your home like the number of bedrooms and bathrooms, lot size, square footage and many more. Here are tips in lowering your real estate taxes:

1. Proceed to the tax assessor's office and ask for a copy of your real estate tax rate card. The card contains information about your home and will also note improvements you have made on your property. Check out the rate card for possible errors and have it corrected immediately.

2. Do not make any home improvements on your home in the months before it is assessed, especially if the project will need building permits. Keep in mind that improving your home could increase its value and thus, increase your real estate taxes.

3. Be aware of what improvements will cost in property taxes. You can call your tax assessor or building official and they can provide you an idea of how much the improvement will add to your taxes.

4. Remember that beautiful homes in general will generate a higher value compared to plain homes, thus refrain from beautifying your home such as enhancing the landscaping.

5. Check out your neighbors' are paying for their homes and if you find out your home is assessed high, find out the reason. You could also ask for a re-assessment.

6. If the tax assessor needs to look around your home, let him or her in because refusing an assessor inside your home may result to it assessed at the highest rate possible. In most cities, this is standard procedure because of the assumption that you have made home improvements you do not want the assessment office to find out.

7. Try to get the assessor to notice the negatives of your home. Property tax assessors will only note on the positive features of your home and will overlook cracked foundation, useless fireplace or aging roof. A home's negative condition should be considered for fair assessment.

8. If you are sure that your real estate taxes are very high, inquire from the assessor's office on steps you have to take in order to challenge the assessment. Many offices have a formal process with forms and step by step guide.

How to Wage A Winning Battle

Fighting an effective property tax protest is probably of more than academic interest if you've found yourself the victim of an overly high property tax bill. In this article I'd like to offer five tips on how you can successfully fight and win the real estate tax revaluation battle.

With wildly fluctuating property values in many parts of the United States and Canada, it is becoming more and more common for property owners to discover that their property's assessed value has been overstated by the taxing authorities.

Why is this so?

Well for one thing, assessing offices are typically understaffed and in many cases simply can't keep up with the workload involved with adjusting the values of hundreds or thousands of properties.

For another the taxing authorities often are slow to lower the valuation of a property, because it means the taxing authority collects less in taxes if they do. While this is not fair or otherwise justified, it is the reality. The fact is it is human nature for many career government workers to exercise this protective herd mentality in the name of job preservation.

With that said, here are the basic steps you need to take when mounting a property tax protest, i.e. a real estate tax abatement filing.

1. Go to your local tax assessor's office and find out what the local tax calendar sets as the deadline for filing a property tax appeal.

2. Request the property tax cards for other homes that you know are fairly similar to yours in terms of construction style, total square footage of living area, age, location and quality. Create a small spreadsheet to help you organize and compare these factors.

3. Compare the assessed values of these homes with your own. If the physical factors are very similar the assessed values ought to be close--but often they are not. If yours has been assessed for tax purposes at a significantly higher value, you likely have a case to wage a real estate tax protest.

4. Adjust your findings for any obvious differences in value that you can determine from these records as well as your knowledge of he local area. Is a property assessed more highly perhaps because it is much younger than another, or because it is a custom home versus a tract home?

Sometimes there are good reasons for differences in assessed values for very similar homes, but probably more often there really is no good reason. Apply some common sense here when weighing these factors, and use the "smell" test. That is, if it stinks, there is probably something rotten about the assessed value! And that is reason enough to take on a property tax protest.

5. State your findings succinctly in a letter to the property tax assessor and avoid being overly dramatic or outraged if you really do feel you are getting a raw deal. Property tax assessors are human, and like you they will react better to honey as opposed to vinegar.

You might even start off with an informal discussion with the assessor before filing an official abatement request. Sometimes an assessor will grant relieve based upon a good, simple argument.

There's no reason to remain a victim of poor government and over taxation. It's easy to wage a winning property tax protest armed with the right information.

How to Save A Bundle In Overpaid Taxes

Property tax appeals represent a huge opportunity for many homeowners and other property owners to save substantial amounts of money each year. But despite the chance for property owners to put hundreds and even thousands of dollars of their own money back in their pockets each year, very few actually pursue this opportunity.

It's a strange thing actually. Why would even the most penny-pinching, financially savvy persons among us often miss the chance to pocket some serious money each year? It may seem more abstract than cash in the bank, but money in the form of property tax abatements and overall lower real estate tax bills is nevertheless just as real.

Even more odd is that these savings can carry forward for years to come. This means the true value of a well executed property tax appeal could easily range into the tens of thousands of dollars over time.

So why do some people stress out about earning a measly extra half percent interest on their certificate of deposit account, yet willingly step over the pile of real cash that a real estate tax appeal could represent to them?

The reasons for this seeming indifference to a financial bonanza vary from one individual to another, but it's a safe bet that many are stopped by the belief that such appeals are a complicated, difficult business.

Nothing however could be further from the truth. In fact, despite the growing number of real estate consultants taking advantage of the turmoil in real estate markets to earn record numbers of easy commissions on these tax appeals, almost anyone could handle their own very easily.

All it takes is the right blueprint to follow, and such blueprints are readily available to anyone who decides to look for them.

In fact there are a number of good books and courses available to guide you in undertaking a "do it yourself" property tax appeal. You could be up to speed on the basics of doing so in just an hour or two, and presenting your own case with just a few additional hours of research and preparation.

The process involves taking a few simple steps to identify the market value of your property. Next you compare this value with the official assessed value of your property as determined by the property tax assessor in your area.

If there is a wide disparity between the two, and the true market value of your property is significantly lower than what the property tax assessor claims it to be, you probably have a winning case.

Of course there are many fine details that go into making your case, and that's where a good course or book on the subject can quickly give you the required expertise. But rest assured this truly is not rocket science.

The truth is, it is mostly common sense. Common sense that can pay you very well for a few hours of your time.

If you'd like to take advantage of a potential financial windfall that you may currently be sitting on, I urge you to learn more about property tax appeals to see if undertaking one makes sense for you.

Calculating Property Taxes Into Your Budget

Property tax is a tax assessed on real estate by the local government. The tax is based on the value of the property (including the land) that you own. This tax is mainly used by municipalities for repairing local roads, building schools and other similar services that help maintain the community.

Property tax is an annual local tax on real or personal property based on a tax rate. The value of the property is typically established by an Assessor, who is a county official. Whenever you are buying a piece of property, it's absolutely critical to take into consideration how much property tax will be associated with the property that you are about to purchase.

At times, individuals will fail to calculate this type of tax into their budget, thus failing to properly evaluate their ability to afford a home or investment property. It is highly recommended to have the property you are about to purchase fully assessed before the contract is finalized, this way you can ensure that you can afford the taxes on your property.

On the other hand, if you were caught unprepared for any reason and a property tax dispute arises, it's essential to retain the services of a knowledgeable attorney if you want to protect your interest in your home or property. An attorney will have full knowledge of the implications you are facing, as well as any applicable resolutions that can help you avoid serious ramifications associated with failing to pay your property taxes.

Keep in mind that these kind of taxes should always be figured into the final cost of purchasing a home. Being prepared and knowing how this will affect your bottom line is critical to selecting a home you can comfortably afford. When you are calculating the loan, any possible mortgage insurance, and interest, be sure to calculate your property tax liability at the same time. The amount of money you have to pay in taxes might ultimately be a deal breaker when you buy a house and they should be considered in your budget.

If you are contending with a tax issue regarding your property and you believe you would benefit from legal advice, a lawyer who specializes in real estate law will be your best bet. With a thorough knowledge of property law, your attorney can help you decide if a purchase is within your budget, and they can assist you with any tax disputes you may encounter. Having a legal professional on your side will be the best insurance you can have in any real estate matter.

A Guide To How To Appeal Your Property Taxes

Fair to say, if you are living anywhere in the country, you are probably paying more property taxes than you should. The National Taxpayers Union, in fact, estimates that approximately 60% of all US properties are currently overassessed.

What makes this particularly shocking is that, since 2003, prices of median homes have declined dramatically. We would therefore expect tax assessments to be adjusted so as to reflect such declines in market values - though this has generally not been the case. Therefore property taxes for many homeowners unfairly continue to increase despite a continued decrease in local home values.

Due to a considerable shortfall in budgets, many municipalities are, in essence, heaping extra taxes on homeowners - many of whom are exercising their constitutional right for an appeal. Though appealing property tax assessments can be difficult and time consuming - and not always successful - being well-prepared for the fight can significantly increase your chances of success.

Assess your assessment

It is important to understand how your property is assessed. Ask a local realtor to help you compare your property with similar properties which sold recently to determine its market value. Multiply that value with the assessment ratio that has been established for your town. If the market value of your property is, say, $100,000 and its assessment ratio is 80%, this means the tax levied on that property is $80,000. Some rural areas and high class neighborhoods use another method of assessment by estimating the house replacement cost by adjusting factors such as the land value.

Property Record Card

Check for errors in your assessment next. To do so, you will need to obtain the worksheet of your property from your local assessor's office. This work sheet is also known as property record card and contains information of your property such as number of rooms, dimensions, number of bathrooms, and so on. Check whether all the information about your property provided in the worksheet is correct or not. If you discover any incorrect or missing information submit this information immediately to the local assessor along with a blue print of your property. In this way you will could receive an immediate reduction and become exempt from a formal appeal.

Comparable Sales

Compare the assessed value of your property with other similar properties in that area. Look at the property's worksheet to compare other factors like square footage, age, bedrooms, bathrooms, and so on. In this way you may be in a stronger position to appeal if your property's assessed value is determined to be higher than at least five other properties. Make a list of comparable properties along with their other details like square footage, construction material grades, same neighborhood, and so on. This list should be produced when demanded by the assessor. The record of your neighborhood's properties is available at the website of your local assessor.

In case you find only three assessed properties at lower and three at a higher value don't lose hope because in this case you might be entitled to a reduction representing the difference between comparable properties and your property. Your house may be the only property with lousy grading which prevents you from having a garden or a less than desired view of your city's water tower.

Fight back

Different localities have different rules and your assessment should be capable of explaining how your appeal works. For this you can provide evidence to the assessor including a list of comparable properties, repair estimates, blueprints, and photographs for review. In this way you can obtain a good settlement in an informal way and the assessor may continue completing his rolls and get a fair reduction for you. On the other hand if some settlement is not agreed upon, continue paying your taxes so as to avoid any future penalties on your property. Don't worry because if the county is satisfied with your appeal, you will get a reduction or check on all future bills thereafter.

Before submitting your appeal form and other related documents, ensure whether or not they comply with all the requirements stated by the county. Keep one copy of all the documents and information submitted by you for your files In a few months you will probably receive a reply and if you think that the reduction you've got is not fair, you can follow the next step. The next step is to submit your case in front of an independent local appealing body. This will be more advantageous because you can personally explain your case. You can use photographs, blueprints, etc to prove that your appeal is correct. Also submit a copy of all the assessed document highlighting important points to every board member.

If your case at local level fails, you can take it to state, and even the judicial, level. Bear in mind, however, that judicial hearing will court fees, lawyer's fees, and other expenses that could negate any savings you might realize from winning an appeal.

Where to search for the right help

It is better to employ an expert assistance which will not only save time but provide proper guidance also. In this way your appeal will become stronger. One more option is to submit your address and case to an online service company. Such companies - for a moderate fee - will highlight comparable homes in your area along with their assessment information and their sale price. If they consider your case strong enough they will send you a report which you can file with your local appeals board. If the appeals board rejects your appeal your money is then refunded.

Should you decide instead on hiring a professional appraiser, confirm that the board to which you are appealing your case permits such a professional or not. Certified appraisers can be found through the Appraisal Institute or the National Association of Independent Fee Appraisers. Most charge anywhere between $250 and $500. Hire a person who is not only experienced in the field but also is familiar with local neighborhoods in your area.

Property Tax Appeal Process

While home prices are still low, property taxes have reached the breaking point nationwide. Many local governments have raised property taxes in an attempt to compensate for declining revenue.

According to The Tax Foundation, 3.5 percent of household income went to pay property taxes in 2009, compared with 2.9 percent in 2005. Clearly, this is not good news for homeowners. Fortunately, there are ways to reduce your property taxes.

There are a multitude of state, county and municipal property tax relief programs which are available to property owners. Although these tax relief programs vary, they typically target categories of people who are the most financially burdened.

Depending on the relief program, a property owner may qualify for a tax rebate, tax credits, a tax deferment, 'freezing' of tax assessed property value, a homestead exemption, or a property tax payment installment plan.

Programs for Senior Citizens

Most states offer relief programs for property owners who are 65 or older. Some of these programs may be based on an individual's income and marital status.

The state of Illinois offers more than one tax relief program for the elderly. The state Senior Citizens Assessment Freeze Homestead Exemption 'freezes' the equalized assessed value of property owned by a senior citizen who satisfies the program's income requirements, so that their taxes will never increase for inflation.

The Illinois Senior Citizens Homestead Exemption offers a $3,500 reduction in the equalized assessed value for a principal residence if the property owner is 65 or older.

The Senior Citizens Real Estate Tax Deferral Program allows senior property owners within specified income limits, to defer all or some of their real estate taxes. The state pays the taxes for which it will receive reimbursement at 6 percent interest upon the owner's death, or if the property is sold or transferred.

Programs for the Disabled

Tax relief programs are also available to individuals who are disabled. Disability determination requirements may vary according to state. Often, tax relief programs available for senior citizens are also available for disabled persons.

Missouri, for example, gives the same tax credits to totally disabled individuals as they give to senior citizens, a maximum of $1,100 to property owners if their home was also their primary residence.

Programs for Veterans

There are a variety of different state property tax relief programs for veterans and their surviving family members. Some of these programs require that the veteran be disabled or have served during wartime.

Texas offers several tax relief opportunities for disabled veterans depending upon their determined percentage of disability.

Veterans who have either a 100 percent disability rating from the Veteran's Association, or have been classified as unemployable, are eligible to receive a 100 percent homestead exemption if their property is also their primary residence. The 100 percent homestead exemption also applies to their surviving spouses after the veteran dies.

Veterans who are not 100 percent disabled, but do have some level of disability, are allowed an exemption amount based on their percentage of disability.

Programs for Low or Moderate Income Homeowners

Some states offer property tax rebates as part of their relief program. An application may need to be filed, but sometimes the rebate checks are sent automatically. There are usually maximum income and residency requirements.

New Jersey homeowners whose annual gross income does not exceed $40,000 are eligible for a property tax rebate. The maximum annual income limit for disabled and senior property owners is $100,000. The rebate is based on equalized home values up to $45,000 and the effective municipal school tax rate.

Most property tax relief programs usually require that a property owner meet other eligibility requirements and file an application. Check with your local taxation authority for details about available programs to help you reduce taxes.

Real Estate Tips You Need To Know

How To Find The Home You've Always Wanted

Homebuyers need resources in today's marketplace if they hope to find the best deals on properties. Articles like the one you're reading now, are all about pointing you in the right direction and giving you a slew of helpful tips that you can use, in order to make the right decision.

When searching for a home, test the toilets by flushing them. Although this may seem trivial to most people, you do not want to purchase a home that has any kind of plumbing problems. Also, check out the faucets and shower to make sure there are not problems with them either.

When buying real estate, make the best deal for yourself and your budget. Buyer's remorse can set in if you feel that something was missing or you did not get what you wanted out of the deal. Negotiate the terms that are best for you and use all your available resources to make them happen.

When trying to come up with a down payment, there are some helpful things that you can be doing. Ask for financial help from your parents, start selling some extra stuff you have lying around that you no longer need, or you can take money out of your retirement funds. Just make sure to pay yourself back.

Before buying a house in a new State, consider renting a house in the area first. By renting a house in the area you can get a feel of what it will be like to live in the area permanently. You can also discover whether there are suitable transport links, leisure facilities, shops, job opportunities, schools, etc.

If you are trying to purchase a home but aren't sure you can afford it, look into buying a home that needs cosmetic repairs. The lack of curb appeal on a home that needs its porch painted or some trees trimmed in the front yard could mean a much lower asking price.

The anticipated economic recovery could take quite awhile to arrive. Do not wait to buy a house right now until the economy gets better if you are financially ready to do so now. Go ahead and make the purchase you've been desiring to make. This is one of the best times to invest at the moment.

If you plan on taking out a mortgage to pay for your home as most real estate buyers do, make sure you aren't biting off more than you can chew. As a general rule, don't buy a home that costs more than five times what you make in one year at your job.

When you are looking at comparable sales, you should break up some money into fixed costs and some into variable costs. True, the amount you pay varies with the square footage of the house, but some things are unrelated to square footage. Lot size, pool, fencing, garages all fall outside of the scope of square footage.

Don't allow the furniture arranging of a home overly influence your buying decision. Well-staged homes are designed to make the home look more attractive, but you must consider how your furniture and decor items will look in the home. On the other end of the spectrum, you may have to imagine what an unattractive home will look like if it has been cleaned, organized, or re-decorated.

It's all about making the right decision as a property buyer. If you're approaching buying without the right information about the market, you could end up losing money in a multitude of different ways. Use the tips that you have just learned here, to ensure that you purchase the best real estate available.