Posted: 02 Mar 2011 09:59 AM PST

Homeowners love rising home values -- until, that is, they receive their annual property tax bill. Then, it's time to consider whether the property tax assessment is accurate, and if not, find out how to appeal it.

Property tax appeals are especially popular among homeowners today due to sharp declines in house values throughout the U.S. The reality is that not all tax assessors have kept up with these trends, which means some homes may be over-valued and thus over-taxed.

Most, though not all, U.S. states tax residential property, according to John Brusniak, president of the National Association of Property Tax Attorneys in Dallas. Other jurisdictions that also may tax real property include counties, cities, towns, school districts, utility districts, and the like. This myriad of taxing authorities means your first step must be to find out who's in charge of your property's valuation. Typically, this information is printed on your tax bill.

Deadlines are inviolable

The other first step (if two such top priorities may be allowed) is to find out the yearly deadlines to appeal the assessment. Deadlines are crucial because the process typically comes to a halt, without recourse, if you don't turn in the proper paperwork on time or show up for a hearing on a required date.

"There might be some specific small outs in various places, but for the most part, if you blow a deadline, you're done for the year," Brusniak warns.

The deadlines might be printed on your tax bill. If not, a telephone call to the assessor's office or a little online research should produce the information.

Comps trump other data

The next step is to gather data about sales of homes that are comparable to yours. These "comps" should be located in your area, approximately the same size as your home and have similar features. The data points for each comp might include the address, date of sale, sales price, square footage, and amenities. Pictures may be helpful as well.

Comps are important because they're used to establish your home's fair market value on a certain date, based on data that's specific to your property, rather than a function of the "mass appraisal" approach often employed by tax assessors.

"Under mass appraisal, (tax officers) generally value an entire neighborhood based on the data they have and then sort of homogenize the values across all the properties. When (they) do that, (there will be) errors because your property may not be like the properties near yours," Brusniak explains.

The tax assessment authority's website or bricks-and-mortar office might be the best place to find comps. A website operated by a local multiple-listing service (MLS) also may be a good resource. Other websites might be helpful as well, but keep in mind that sites may be incomplete or contain outdated or erroneous information. A search of several databases, based on the parameters of your home, should turn up some useful results.

Appeal can take months

The property tax appeals process can take place at multiple levels, such as a written form or request for a review, a citizens' panel, an assessment appeals board, or other forums. Each level will have its own rules, guidelines and deadlines, set by law or the tax authority.

The first opportunity may be an informal chat with the local assessor, while the last resort could be a full-blown lawsuit, according to Bruce Woodzell, president of the International Association of Assessing Officers in Charlottesville, Va.

"The first step is to go in and have a casual conversation with the assessor or appraiser," he explains.

How long the entire process will take depends on local resources. In some places, homeowners receive a final resolution within a few months. Elsewhere, an appeal can take a year or longer.

The process is data-driven, so homeowners should avoid emotional arguments. Assessors generally have "no connection whatsoever" to setting property tax rates or collecting property taxes, so "going in angry" or "trying to just plead for a reduction" is unlikely to succeed, Brusniak says.

"Information speaks volumes," Woodzell adds. "If you have hard facts, if you have sales data, and if you have all your information right, it really helps."

Some jurisdictions offer a tax break if you occupy your home as a principal residence, are elderly or disabled, or meet other qualifications. Generally, you must be proactive to claim these benefits, Brusniak says, so it's a good idea to call the assessor's office and ask. Again, a missed deadline may very well mean no tax break for that year.

Do-it-yourself project

Most homeowners can contest their property tax on their own or perhaps with some help from a local realty broker. Only rarely is an attorney or private appraiser necessary to the process.

"For the most part, this is a thing you can do yourself," Brusniak says. "If you have a $5 million property that's a really complex issue, then perhaps you ought to bring in an attorney who can help you."

The possibility that an appeal could trigger a higher valuation might spook some homeowners, but Brusniak suggests the risk of such an adverse outcome is small.

"Can it happen?" he says. "Yes. Does it happen? Rarely. Generally that's when there has actually been a valuation error."

The original article can be found at HSH.com:
"House lost value? Get a property tax do-over"

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Gov's property-tax cap is a must

Posted: 01 Mar 2011 08:17 PM PST

Gov. Cuomo strode into office largely on the power of his pledge to reduce the state's crushing tax burden. His campaign's centerpiece was a 2 percent cap on property taxes, an initiative that New York's long-suffering small businesses have supported for many years.

In the first eight weeks of his administration, Cuomo has made it clear that he intends to fulfill this campaign pledge. His address to the Legislature, in which he said that New York has no future as the national leader in high taxes and government spending, struck a resounding chord with small businesses and taxpayers.

But entrenched special interests in Albany are fighting the property-tax cap and the other necessary reforms that Cuomo has proposed. The Assembly Democratic leadership has stubbornly opposed a property-tax cap for years. In fact, Assembly Speaker Sheldon Silver and Assembly Majority Leader Ron Canestrari recently stated that property-tax relief isn't a top priority. Really?

Consider:

* New York has the highest local taxes in America -- 78 percent above the national average.

* Nine of the top 10 counties nationally in property-tax rates are in upstate New York.

* 39 percent of all taxes paid by businesses in 2009 came from property taxes (Ernst & Young Report).

* The median property tax in New York in 2009 was $3,755 (Tax Foundation Report). The state comptroller has reported that property taxes rose 73 percent from 1998 to 2008, more than twice the inflation rate.

* New York ranks dead last in terms of its tax environment, according to a national survey.

* More people have left New York in recent years than have left any other state.

Property taxes are the largest tax on business in New York state and are the fastest-growing component of most New Yorkers' tax bills. Property-tax relief is an overwhelming priority for the state's small businesses, which produce most of our new jobs. It's critical for the thousands of middle-class and fixed-income residents who can't afford to remain in their homes because of runaway property taxes.

That's why we are asking Cuomo, whose actions have encouraged small businesses, to include the property-tax cap as part of the budget amendments that he'll introduce next week. We urge him to press Silver to put aside narrow political interests and follow the lead of Senate Majority Leader Dean Skelos, who stood up for New Yorkers and put the bill on the Senate floor.

Now is the time for meaningful, long-term property-tax relief -- beginning with a cap. The governor needs to make a profound statement that New York is truly open for business and put the property-tax cap in his budget amendments.

Mike Durant is interim director of the New York office of the National Federation of Independent Business, the country's largest advocate for small businesses.

Realtors’ group offering Property Tax Appeal Seminar

Posted: 02 Mar 2011 08:39 AM PST

DEARBORN — The Dearborn Area Board of Realtors is presenting a free Property Tax Appeal Seminar from 5:30 p.m. to 7:30 p.m. March 7 at Park Place, 23400 Park St., Dearborn.

The Tax Appeal Seminar will be conducted by Jumana Judeh, MAI, GAA, Certified General Appraiser, who will help you understand how your property taxes are calculated on your home or business. You know if you don't pay your taxes, there are serious and very expensive consequences including forfeiture of your property.

Do you wonder?

•How can market values drop dramatically while my property taxes keep rising?

•How can I appeal my property taxes?

•What is the process to appeal?

•When do I appeal my property taxes?

Answers to these questions and many more will be provided to you by our bilingual presenter so that you have an opportunity to possibly save thousands of dollars if your property is over-valued for tax purposes.

Registration is limited. Please contact the DABOR office at (313) 278-2220 for further information. Office hours are 8:30 a.m. to 4:30 p.m.

DEARBORN — The Dearborn Area Board of Realtors is presenting a free Property Tax Appeal Seminar from 5:30 p.m. to 7:30 p.m. March 7 at Park Place, 23400 Park St., Dearborn.

Do you wonder?

•How can market values drop dramatically while my property taxes keep rising?

•How can I appeal my property taxes?

•What is the process to appeal?

•When do I appeal my property taxes?

Registration is limited. Please contact the DABOR office at (313) 278-2220 for further information. Office hours are 8:30 a.m. to 4:30 p.m.

Property Tax

Wednesday, March 2, 2011

“House lost value? Get a property tax do-over” plus 2 more

“House lost value? Get a property tax do-over” plus 2 more

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