March 15, 2007
Property Tax Assessments
You'll need to compare your property tax assessment to the actual market value. Then you'll need to find comparable properties and apply the multipliers (sales ratio multipliers explained in the book), as well as specific valuation adjustments to the properties you are appealing against to make your case hold up. You have to make sure your adjustment are reasonable and within guidelines explained in the book.
The tax assessor will naturally cherry pick his tax comparables for higher numbers so you'll have to be on your toes to catch him. Of course you'll cherry pick value comparable property assessments that will make your figures look like the reasonable ones.
With the current downward market pressures and future estimates from some top economist for a 20 – 40% decline in real estate prices, the opportunity to appeal you property taxes based on market value seems could be a good bet. What the assessor says your house is worth and what the actual market value is has a greater chance of being miles apart but it is up to you to make the case.
Big brother will never knock on your door and say, "We found that your home deserves a lower tax assessment and here it is." That will never happen. You can count on that. The liberals in your town spend your money like there is no tomorrow and you're left holding the bag. They won't come looking for you carrying a glass slipper looking to give you a break.
Filed under Blog, Property Tax Assessments by George Bolton
