How to save money on your real estate taxes
Are you staring at your tax bill, wondering why it is so high and if it would be worth it to fight city hall?
CBS' Early Morning Show financial guru, Ray Martin, says you can and should appeal your tax bill if:
- House prices in your area have dropped significantly. The assessed value of your house does not reflect the current value of your house. He cites an example of a house that you purchased two years ago for $320,000 and is now being sold by a builder for $250,000. A successful appeal could result in a $6,000 annual tax bill decreasing to a $4,800 tax bill. This means a savings of $100 a month to you.
- There is an error on your tax card. The room dimensions, lot size and/or type of property could be wrong on your tax card. This error could result in a successful appeal for you.
In the CBS online video, Cutting Your Property Taxes, Martin states there are two critical reasons why a homeowner should file an appeal:
- If you are thinking of selling your house, a lower tax bill will be attractive to potential home buyers.
- A lower tax bill saves you money.
Martin said in order to have a successful appeal, you need to:
- Learn the process. Contact your local tax assessor's office to find out the entire process.
- Get your tax records. The best tax record will be your tax card, which has all the features of your house on it. If you cannot find it, request a duplicate copy from the assessor's office.
- Determine the basis of the appeal. Is your house overvalued? Is it assessed at a higher value than legally allowed? Is there an error in your tax records?
- Meet appeal deadlines on time. Make sure you provide necessary paperwork in the timeframe allowed.
Share your property tax appeal stories
If you decide to appeal your tax bill, Connect2Agent would like to know how the process goes for you. If you have appealed a tax bill, Connect2Agent would like to hear your story. We invite you to share your experiences by commenting below.
Posted by Rebecca D. Levinson
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