A property tax appeal is a way for a homeowner to challenge a too-high property assessment, which can reduce their tax bill. Another benefit of having an accurate assessment includes paying lower insurance premiums.
If you’re dealing with an incorrect assessment, you don’t have to accept it. That said, you might not be sure about how to proceed with an appeal.
Read the rest of this article to learn the process involved. We’ll also feature common types of property tax appeals, what evidence you should collect for an appeal, and how a lawyer can help you achieve a favorable reassessment.
What are the Most Common Reasons for Property Tax Appeals?
Property tax appeals usually arise due to the following reasons:
- Old or outdated market data that doesn’t properly reflect the current property values.
- Errors in size, square footage, or similar characteristics of the property.
- Structural issues or damage that have not been recognized during the property assessment.
- Incorrect property classification. For example, the property might be classified as a commercial instead of residential property.
How Does a Property Tax Appeal Work?
If you want to challenge your property assessment because it’s overvalued, the process will involve important stages and compiling evidence to strengthen your claim.
Note that you usually have between 30 to 60 days to review your property assessment and file an appeal, but the duration depends on your jurisdiction.
The process of appealing a property assessment can also vary in different locations, but here is a general outline of what you can expect.
Speak with the Assessor
In some locations, this can be an informal discussion, but you will have to show evidence of why your property valuation should be lowered.
Appeals can be easy if the assessment has incorrect information that needs to be corrected, such as an incorrect square footage.
If all the property details are in order, you should consider showing evidence of comparable sales or economic value to support your claim. For comparable sales, you’ll show that the property value is too high when compared to similar properties with similar square footage, location, and lot size.
File a Formal Appeal
If the assessor doesn’t respond to your request, you can formally appeal the reassessment. You will have to file it with your local appeal board within a specific timeframe. If you miss the deadline, you might not be allowed to appeal the overvaluation.
Appeal to the Court
This is usually a last resort. You’ll have to hire a lawyer and appraisal expert to pursue litigation to correct the property assessment.
Since it can be the more expensive option, your lawyer will help you gauge if it’s worth the tax savings you could earn from a correct property valuation before you proceed.
What Evidence Do You Need For a Property Tax Assessment Appeal?
To ensure a successful property tax assessment appeal, it’s essential to have comprehensive evidence to back your claim. Here is what you should gather before your appeal.
Assessment Notice
You should check that the property assessment notice you received doesn’t contain any errors.
Comparable Sales
Do some research into the recent sales of similar properties in your location. Compare their prices to yours so that you can see if yours is inflated. You could ask a local real estate agent to assist you with this.
Appraisal
It’s worth hiring a licensed appraiser to conduct a property appraisal, as it will provide information about property value, location, size, and condition, all of which will influence the property valuation.
Property Records
You will need to bring your property deed, tax bills, and other documents that reveal the property history and document changes over the years that could affect the property value, such as structural changes.
Property records should include any repair and maintenance records, of which you can show evidence with invoices.
Images
It helps to take photos of your property so that you can display visible evidence of how the valuation is incorrect, such as if there is clear damage to the property.
Market Conditions
You should research the real estate market in your area, such as sales and adjustments to property values, so that you provide general and updated information about property valuation in your area. Again, a licensed real estate agent in your area can help you with this.
How Can a Lawyer Help You with a Property Tax Appeal?
Property tax appeals can be time-consuming and stressful, especially since their rules vary in different jurisdictions.
Hiring a lawyer to help you is advisable. Here’s how they will be able to assist.
- Your lawyer will investigate if your property has been over-assessed as you suspect.
- They will gather all the information you need for your appeal, such as in-depth and current market data.
- They will draft a persuasive argument for a successful appeal.
- If you go to a hearing for your appeal, they will represent you.
- Your lawyer will work with other professionals involved, such as an appraiser or real estate agent.
- After collecting the evidence for your property tax appeal, they will present it in a legal and appropriate way because they know what’s required.
- They will meet all deadlines for filing appeals, which can vary in different locations.
- They will use their expertise to identify property valuation reductions that seem appealing but don’t save you much money.
- To save you time, your lawyer will conduct research for the case, complete all the required filings, and communicate with tax authorities.
- Since they’re knowledgeable about the property tax appeal process and all regulations, they will prevent costly mistakes.
Do you need a lawyer for a property tax assessment?
Contact a lawyer on ContractsCounsel, an online legal network that connects clients to vetted lawyers. You’ll connect with reputable, professional lawyers. They will help you through the entire appeal process so that you increase your chance of success and reap tax benefits from a lower, yet accurate, valuation.
