Property Tax
Property Tax
City Government Property Tax
Property tax is a fundamental responsibility that homeowners cannot alter. However, homeowners can alter how the funds from property taxes are allocated. In many cities, a large portion of the property bill is given to the public school system, while smaller amounts go to the public library system, the park system, and road improvements.
To learn how your property taxes are divided, you don’t need to look any farther than your property tax bill. This document breaks down by dollar amount how city services are funded. City council meetings are a good source of information to also learn of changes in property tax rates.
How is my property tax assessed?
Your property taxes are based on the assessed value of your real estate. In some states and counties, personal property tax is based on the value of not only your land, but also your cars and boats.
One major point of contention for homeowners, especially those who face Texas property tax and California property tax, is how the value of the real estate is assessed. Texas property tax, for example, is calculated based upon the annual assessment of your real estate’s value. This property tax assessment strategy was particularly difficult for homeowners who faced skyrocketing property values – and subsequently, tremendous property taxes, even if they purchased their homes decades ago.
Other regions use different state property tax valuation methods. For example, some counties calculate property tax based upon the home’s actual market value, while others conduct the property tax assessment by the percentage of its worth.
What if my property taxes increase? Can I enact a property tax appeal?
Indeed, homeowners can certainly submit property tax appeals, which may result in a property tax reduction. In fact, the appeals process is no more difficult than representing yourself in traffic or small claims court.
How can I fight my property tax bill?
If you want to fight your property tax bill yourself, then it is vital to know how the process works. You need to know when property assessments are submitted, and how long you have until the appeal deadline. Contact the assessor’s office for this information. In addition, you should find out how long you have to appeal. It could be as little as 30 days or as long as 120 days.
Send your request for appeal by certified mail so you can prove it arrived within the required deadline. Property tax assessments can be appealed two ways:
- A mistake was made on the assessment, or
- The assessment was made at a higher rate than comparable homes in your area
If the assessor won’t meet with you, or you’re not satisfied with the outcome of the informal meeting, then it is time to protest the assessment. Ask the assessor what the deadlines are for filing a protest and the procedure. Be sure to follow the guidelines exactly so there is no reason to deny your appeal.
If you are short on time, hire a property tax consultant or attorney. The consulting fees can be charged in a variety of ways:
- On contingency
- Charge a flat fee
- Charge by the hour
If you find that your property tax appeal was not approved, you have the option of taking the issue to court. In many states, there is an appeals board where you can take your case.