Property Tax Appeal Basics

Property tax assessements, rates, rules and the property tax appeal process varies greatly by state, county, township, city and/or other regional jurisdiction. The rules in one region are often times completely different than another adjacent region. We have researched and understand the local rules, regulations, policies and procedures for your jurisdiction to make sure you don't make any mistakes.

How are property taxes determined?

The assessor attempts to determine the market value of your home by looking at comparable home sales from your region. For most regions, it is unfortunately not possible to analyze each home individually as they lack the necessary resources to do so. Consequently, most regions use a “Mass Appraisal Algorithm” which analyzes properties by a large area, often considering thousands of houses at a time which saves them time and money. In some counties, equalization ratios, tax rates and other factors are included in the calculation. When their assessment is finished, they send your assessment notice to you in the mail.

Who is over assessed?

Based on our research, 1 out of every 4 homes in the US is overassessed. According the Wall St. Journal,"Half of all homeowners may be paying too much.” Most homeowners have no idea if they are overpaying. Most homeowners also do not understand it is their legal right to appeal their property tax assessment if they believe they are overassessed and overypaying their taxes as a result. Even if your valuation appears to be around market value, it may be over assessed due to factors such as assessment ratios.

What is required to appeal?

A property tax appeal must be filed within a very specific timeframe, the “Appeal Window”. If you do not file during this window, you miss your opportunity to reduce your tax bill for the next year or property tax assessment cycle. Every regions’s appeal window is different. Most appeal window are only a few months in duration. The appeal typically requires these items or evidence to support a case:

1. 4 or more comparable homes ("comps") that sold for an amount less than the assessed value of your home in the 3 years prior to the assessment date.
2. Between 6-10 comparable homes that did not sell and are assessed for less than your home is assessed.
3. Major construction defects in your home such as: leaking roof, cracked foundation, significant erosion).
4. Proof that a data error exists that unfairly raised your assessed value (i.e., the region data could show 4 bedrooms for your home when there are only actually 3).

Choosing comparable home sales

This is usually the most difficult and time-consuming part of an appeal. Every region has different rules and fine-print specifying which comps are legitimate and allowed to be included in the appeal. Realtors and real-estate websites can be a source for comps however often times, many of their comps are not unqualified for use and will result in an appeal denial. Comps are unqualified for use in an appeal for many reasons which can be difficult to determin including if they were:

• As part of a foreclosure
• As part of a “short sale”
• As part of a divorce settlement
• As part of an inheritance
• To a non-profit charity
• After the assessment date