5 Tips on How to Lower Property Taxes

Posted by Jill Noelle Olandria on Jan 30, 2017 11:30:00 AM

Most taxpayers are familiar with income taxes but not with property taxes. This is such a shame considering that property taxes can be burdensome yet can be significantly reduced! Here are 5 tips on how to lower property taxes even before the annual notice of assessments are sent by mail.

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#1 Learn About Property Taxes

Property taxes are among the principal sources of revenue for local governments in the United States. These are usually imposed on real estate and personal property, such as land, buildings, and cars. These are almost always computed as: the property’s fair market value x assessment ratio x tax rate.

Download the GA Property Tax & Appeal Guide

The fair market and assessed values are always determined by the local officials typically the local assessors. But the property owners have the right to dispute it and the responsibility to see the appeal process from beginning till end.

The legal owner of the real property has the responsibility of paying its applicable property tax. In case of a mortgaged property, a certain portion of the monthly loan amortization goes into an escrow account. The mortgagor (i.e., lender) should pay the property tax on or before its due date. 

#2 Study Your Property Card

Your next step in how to lower property taxes is to get your property card from the local assessor’s office. You can have it photocopied for your perusal, which should reveal valuable information for your appeal, for example:

  • Land size
  • Living area
  • Number of bedrooms, bathrooms and the like
  • Outbuildings like sheds and garages
  • Improvements made on the original structure
  • Dates of purchase and assessment history

Be sure to look over every piece of information on your property card. You may need to ask the assessment staff for a guide to the codes they use on the property record cards. The local assessors can make mistakes, and you can call their attention to mistakes for proper and prompt action.

#3 Be Aware of the Impact of Your Home Improvement Projects

The more expensive the home improvement projects, the more likely the property tax will increase. Typically when building permits are issued you have to declare the cost of the improvements. This information will be given to the tax assessors so they can keep up with changes to property that impacts value. You may want to ask your property tax advisor about the possible impact of your building projects on your property tax before the building starts. 

A few tips to keep in mind: 

  • Your house will be compared to the houses in your neighborhood. You may want to avoid making your house stand out from the rest.
  • Your home will be judged based on its external appearance. Improving the interior of the house but not the exterior may help keep your assessment lower.

This isn’t to say that you should let your house become a dump. But it pays to be aware of how improvements affect property taxes. 

#4 Look Outside for More Information

Let’s assume that your home was, indeed, overvalued according to your personal estimation. You should look to external sources for more information, which can be used in a property tax appeal.

A few examples of external sources include: 

  • Check your neighbors’ property cards. You may just discover that your property is being called better quality construction when your neighbor’s homes are the same quality.
  • Look at real estate websites. Check out the properties that have been sold in your neighborhood and surrounding areas. You will have a general idea about the fair market values of the homes here.
  • Ask for an independent professional opinion. You can hire a licensed appraiser from the American Society of Appraisers or the National Association of Independent Fee Appraisers, but keep in mind that appraisers estimate actual value and are not advocates for lower values.

#5 Hire a Tax Expert

If you decide to file a property tax appeal, you’re also well-advised to hire a property tax expert, preferably a professional with comprehensive experience in the matter. Property tax consultants are experts at gathering information needed to obtain lower taxable values. You may want to do it on your own but the complex process and procedures are time consuming and your chance of success is lower than a professional.

There’s no sense in making your home a dump among the mansions. Just keep these tips on how to lower property taxes and enjoy your home without the burden of high taxes. 

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