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How to Start a Property Tax Appeal

How to Start a Property Tax Appeal

What is a Property tax appeal?

A Property tax appeal is a formal process undertaken by a homeowner. A property tax appeal will be initiated by a homeowner who feels as though his or her property taxes are too high given the true value of their particular lot of land or home. The property tax appeal is a written document, filed by a homeowner of a specific jurisdiction and delivered to the underlying local government, to effectively question the individual’s property taxes and coordinating property value.

Property taxes are annual tax, paid each year by an individual homeowner; the tax is an ad valorem tax that is calculated based on the assessed value of the individual’s underlying property. The proceeds of the property tax are fundamental for a local government; the funds acquired from the property tax are used to provide a community with public services such as roads, schools, and law enforcement. The property tax, as a result of the exorbitant rates that some states levy, is the principal stream of revenue that a municipality will use to fund public services.

The property tax is distributed by a local government agency in accordance with an evaluation of the underlying property’s assessed value; the higher the value of an underlying property the higher the attached property tax. As a result of this proportional relationship, those homeowners who live in costlier homes or pieces of property must satisfy higher property tax obligations. 

A property tax appeal, upon understanding the intricacies associated with the property tax is a formalized re-evaluation of an individual’s property tax rate. A Property tax appealis filed by homeowner’s who are unhappy with their property tax rates; individuals will file a property tax appeal in hopes of having their property tax rates lowered for the subsequent years. The property tax appeal is evaluated by the municipalities’ board of governors that is responsible for calculating a community’s property tax rates; the property tax appeal will include all information concerning the property’s true value, including any information regarding the surrounding area that could affect the property’s assessed value.

How to Initiate a Property tax appeal: 

The process to initiate aproperty tax appealis dependent on the issuing jurisdiction; each locality will operate under differentiated tax laws, which will affect the required to documentation to formally request an appeal. In the majority of jurisdictions in the United States; however, an individual will initiate a property tax appeal by undergoing an independent appraisal on the underlying piece of property to determine if the locality’s tax assessment was too high. When the assessment is made by an independent party, an appraisal report should be finalized; the appraisal report is the foundation of all property tax appeal.   

The appraisal process will evaluate all intricacies (primarily those that affect worth and property value) attached to the individual’s particular lot of land. This process requires the homeowner to be forthcoming with all information attached to the owner’s property and the surrounding area. 

The property tax appraisal, which is established by the independent agency, must be delivered respective board that is responsible for administering and evaluating property tax rates in your particular locality’s area. Along with your tax appraisal report, you will also need to obtain your coordinating tax appeal along with supporting documents to initiate property tax appeal. The majority of jurisdictions have deadlines for filing property tax appeal; understanding your localities specific deadlines and protocol is necessary to expedite the property tax appeal process. Once the appropriate documents are filed, a hearing date, where a review board will evaluate the property tax appeal, will be delivered to you in written form.