Tax Assessment on a Home: This is How You Reduce It

The tax assessment of a home reflects the county’s estimate of its market value. This value affects your property taxes each year. Counties base this assessment on factors like home size, amenities, and location. They also consider the value of nearby homes. If you feel your home’s tax assessment is too high, you can appeal to the tax assessor for a reduction.

tax assessment

Read: This Is How You Can Maximize Your Tax Return

Evaluate the Current Tax Assessment

Call or visit your county’s tax assessor’s office and ask them for the specific criteria used to determine the tax value. In some areas, this information is available on the county’s website. Ask whether they base the assessment on the total value of the home or on a certain percentage of the home’s value.

Request the property card that lists the details of your home and the current tax value. In some cases, this information is located in the county records department. Read your property tax card carefully to verify that all the information is accurate. For example, compare the number of rooms listed with the actual number in your home. In addition, verify that the square footage of your lot is accurate on the card. Property cards often contain errors, which lead to a wrong tax valuation. Correcting the errors is sometimes all you must do to lower the home’s assessed value.

Determine the Value of Surrounding Homes

Look up the tax value of at least five to 10 homes in your neighborhood that are similar in size to your home and have the same number of bedrooms and bathrooms. This information is also available at the tax assessor’s office, so get it at the same time you obtain your own home’s information. Visit each home on your list and take a photo of the exterior, which you will include with your appeal. If you don’t feel comfortable looking up the values of nearby homes, hire a real estate agent to perform the task. Agents will request a fee, but can often perform the research faster.

Create a spreadsheet of each of the researched properties including your own. For each property list the address, the tax value, and the last date of sale. Write a description next to each one explaining why you believe your home resembles it or why your home does not resemble it.

Appeal the Tax Assessment

Visit your tax assessor’s office once more, or look on the county’s website to locate a tax assessment appeal form. Complete the form with your contact information and information about your home. Attach the list of other properties to your appeal form. File the form with the assessor and wait until they notify you of a hearing date. Some counties only allow appeals during certain times of the year. Rehearse your presentation including all the data you collected, and print out additional pictures of each of the properties. Attend the hearing and present the information to the review board.

Although lowering the assessed tax value of your home requires patience and quite a bit of research, it can pay off. So, the next time you receive a tax assessment notification in the mail, take time to examine it and see if you could save some money.

More from this stream