Have you been handed what you think is an unfair property tax assessment? This is an all-too-common problem for property owners. The good news, however, is that tax assessments can be appealed.
Understandably, if you don’t have any tax or legal experience, you may not know what to do or how to get started with tax planning for your property, especially regarding property tax appeals.
Here are some steps to take that will help you handle a property tax appeal like a pro.
What Is a Property Tax Assessment?
Property taxes are based on the value of your home. This is a particularly important consideration for people looking to buy and flip homes, as improvements made to the property will likely lead to significantly higher property tax costs.
Property tax assessments are carried out by a property tax assessor, an official employed by your local county authority. Assessors examine your property, comparing it with similar properties and considering factors like whether the property is residential or used for business.
In making their assessments, they may apply the cost approach, a real estate valuation method that accounts for the costs of improvements to a property and the underlying value of the land on which it was built. Alternatively, your property may be assessed by its market value or income-generating potential.
Even though the factors that determine your property’s assessed value are objective, how individual assessors may interpret this data may differ. This means there is a high chance of receiving an inaccurate or unfair assessed value for your property.