Contesting Property Tax Valuations

[mscher]

We have received, our property tax valuations, but the new rental house ( it was a primary residence before, not that it should matter), valuation, is almost twice what we paid for the property and what it was recently appraised at.

We can/will contest it in writing, but not sure what all to do. It says to include documentation, which we have the sale bill and written appraisal.

Anything else to include, or to put in the letter?

 

[Eric 3.7LX Alpha 1]

Re: Contesting Property Tax Valuations

One of my coworkers just did this same thing and got it lowered quite a bit. I will speak to him tomorrow and post what he suppled for documents.

 

[bruceb58]

Re: Contesting Property Tax Valuations

Every County/City, or whoever collects property taxes, has different appeal processes. You need to contact your own agency to find out what they need.

 

[snowforfun4]

Re: Contesting Property Tax Valuations

We did it successfully a couple of years ago. My wife got on the county auditor website and printed off a number of comparable houses in our area along with sales prices, date of sales etc. and it was enough to convince the county to revise the number in our favor. She was pretty detailed and included square footage data, etc. She may have included comps currently for sale as well. Good luck!

 

[ajgraz]

Re: Contesting Property Tax Valuations

You should ask at the gummint office which of them's gonna come out and buy that proerty off you for twice market value.

 

[86 century]

Re: Contesting Property Tax Valuations

Indiana went to "fair market value" system a few years back.
Lots of people in your same situation including me.

Cost me $350 for an appraisal and some getting loud at the assessors office.

You will see a big jump when you loose your homestead exemption witch is probably the reason for the " re assessment " to behind with.

 

[Bob_VT]

Re: Contesting Property Tax Valuations

Be sure to list other properties similar to yours. The tax value is normally public record and you can compare.

Just curious how much did it jump? when was the last appraisal? Here where I live .....they do the entire town at one time so everyone is current.

Good luck.

 

[colbyt]

Re: Contesting Property Tax Valuations

Protest every time you get an increase notice. They will always negotiate and anything you save pays yearly dividends.

I agree that the procedure varies so much you need a local opinion. Generally speaking a comp between your house and recent sales of similar properties in similar areas is the proof you need to win the case.

 

[greenbush future]

Re: Contesting Property Tax Valuations

Without facts (comps) you wont get much done. As long as you are really speaking about value (not the new tax calculations that takes out the Homestead perks) jumping so much. My tax calculation for my non homestead stuff is enough to make you throw up, but there isnt much you can do about paying triple taxes for schools you will never use. Comps are the only way I know to provide enough. Good luck.

 

[mscher]

Re: Contesting Property Tax Valuations

You will see a big jump when you loose your homestead exemption witch is probably the reason for the " re assessment " to behind with.

It really was not a re-assessment. The property has been worth and sold for, about double the price, until recent years.

We recently purchased it as a rental, so we won't get the homestead exception on it anyway.

 

[colbyt]

Re: Contesting Property Tax Valuations

It really was not a re-assessment. The property has been worth and sold for, about double the price, until recent years.

We recently purchased it as a rental, so we won't get the homestead exception on it anyway.

This doesn't compute. In an 'arm's length transaction' and not a forced sale the new assessment should be equal to the purchase price irregardless of what the assessment was before the sale.

 

[salty87]

Re: Contesting Property Tax Valuations

look around for a business that will protest the appraisals for you. they exist in TX, maybe they do there. each year, they automatically protest for you. the cost is half of what they save you in taxes. between the ease of it being automatic and the fact that they can probably do this better than a non-professional (hopefully) it works for me. half is better than nothing, imo.

 

[JimS123]

Re: Contesting Property Tax Valuations

Our town reassesses periodically town wide to keep everyone equal and at full value. A few years ago I refinanced and had a 28 page appraisal from the bank that was just weeks old. I challenged the new assessment and was told I had to meet with the committee, yada yada. When I showed up they said I needed proof, and i was ready. They took it and yold me they would decide and mail me the results. They did not reduce my assessment, with the reason being "inadequate proof". I asked why a 28 page report from a licenced and accredited appraiser was no good. Their only answer was "denied".

A few years later I added a 3 car garage and driveway and paid over 20 grand for it. My assessment only went up $2000.

Gotta love the govment.

 

[rivermouse]

Re: Contesting Property Tax Valuations

I appealed my home appraisal last year . Times were when the tax value was always lower that the fair market value. My present home was priced at 20 k above the tax value at the time over 20 years ago. Now because the city/county has figured they can use tax assessments as a way to take more money from the property owners almost all of the homes are assessed at much more than the real fair market value. I appealed and had them lower their over priced assessment by 20k . You have to appeal by the set deadline. Then a city appraiser will come and then you explain the reasons for your appeal. Some of the reasons I used were that unlike almost all of the homes near by I have not spent major money on up grades and that there were problems with the home not visible from the outside which would affect the sale of the home. I also told the guy that I was so sure they had over valued my home that I would be happy to sell it right then for 50k less than their so called value and I would..He said the location was the main reason for the increase.

 

[nikon]

Re: Contesting Property Tax Valuations

I'm an appraiser. My clients have a pretty high success rate when bringing my appraisals to an appeal. If you do get an appraisal done, verify what the effective date of the report needs to be from the county and ask the appraiser to include interior photos within the report.

In the same token, my father is also an appraiser (longer than me) and tried to fight a tax increase on his own house. His case was valid and he argued it very well. But no matter what they wouldn't give it to him.