How & Why Should You Dispute Your Property Taxes?

Know how to catch mistakes and dispute your property taxes from an outdated valuation.

Property values are increasing a lot across the country due to the aftermath of the pandemic.

This is surely amazing news for homeowners who are planning to sell their property. But wait! There is something more to it. Have you received your property tax yet? If not, then expect to witness a spike in property taxes amounts.

This does not mean that you should pay whatever amount is mentioned on your property tax bill. Your property tax can be incorrect. This is where you can dispute your tax liability. Your local tax collector will assess your property tax again to cross-check your claim. If your claim stands true, then you can save yourself from paying undue property taxes.

Reasons To Submit a Property Tax Appeal Letter

There is a wide range of reasons that can contribute to such a mistake. Timely action from your side is necessary to avoid overpaying property tax.

The first common reason for such an unexpected increase in your property tax is that your tax collector may have accidentally valued your property twice. Ambiguity in your name or home address can be the reason behind this. You may get the valuation of property on the same name or address twice.

Secondly, it may be that your assessor under-depreciated your assets. Assets with higher depreciation have lesser value and are subjected to lesser tax. But a mistake in correctly interpreting your assets can lead to the issue of under-depreciation.

If your assessor is maintaining a record which is outdated, then you can expect to get property taxes for those assets that are no longer owned by you. Outdated paperwork may show assessor that you are still the owner of assets that you have sold recently.

How to Dispute Your Property Taxes

You must have proof that your property taxes are incorrect. Merely doubting the property tax bill on assumptions will not be substantial enough. Having specific evidence will make your case stronger and will save you from having your case potentially denied. Here is a sneak peek into the process of disputing your property taxes:

  • Thoroughly check the information of your property mentioned on the tax assessment. Having even a minor error in your property’s square footage or the number of bedrooms can cause a massive spike in property taxes.
  • Ensure that you check the market values of similar properties in your surrounding neighborhood to attribute to an error in the valuation.
  • Once you are assured that you have a legitimate issue to raise, present your case to the local assessor. You can submit the formal property tax dispute application to the local assessor for another review. Attach your supporting evidence with the letter to justify your point. The review process typically takes several months.
  • Don’t hesitate to consult a professional for this process. Hiring a professional is the best option if you are not aware of the tax complexities and want to acquire the best possible verdict from the local assessor.

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