Homeowners Beware–Property Tax Assessors
Written by Susanne on October 28th, 2009
I have had numerous calls this week from members regarding a solicitation letter they’ve received with their Property Tax bill. I received the same letter! It states that for a small fee of $189 they can get your property taxes reduced saving hundreds of dollars!
Here’s what you need to know
If you bought your home within the last 2 or 4 years, it is likely that your current assessed property value – the basis for your property taxes – is higher than the current market value of your home.
In California, the County Tax Assessors office determines your property taxes off the sale price of the home. The reassessment every year is an automatic increase of 2%, rather than an actual reevaluation of fair market value based on factual market dynamics.
You also need to know that any reduction will be temporary. The law allows the assessor to raise your property taxes back up at a later date to the original tax assessment plus the 2% per year increase.
Here’s what you need to do
With property values continuing to decline, many counties have actually simplified the process of getting property taxes reduced based on the current market value of a home.
To get your property taxes reduced on the basis of a decline in the real estate market:
- Go to your county website to the Forms section and look for a form with the words “reassessment request”, “contesting your property value” or “decline in market value”. If you can’t find the form give them a call and ask them to e-mail, fax or mail the form to you. I have included a few county sites below:
- Usually the form will ask for an estimate of the current market value of your home and to list the recent comparable sales in your neighborhood supporting that estimate of value. How do you obtain this info? Here’s what you do:
- Call the real estate agent who sold you your home and ask that they complete the form for you or at least provide a list of comparable sales. Realtors want to keep you as a long-term client, friend or referral source, so 9 times out of 10 they will do this for you. Alternatively,
- Go to either www.zillow.com or www.cyberhomes.com – you’ll get an estimate of value and a list of comparable sales on which it was based.
Keep in mind that you are trying to make a case that your property value is significantly lower than when you bought it – so list legitimate sales that support that argument. Use only homes that are similar to yours, same room count and square footage (within 1 mile), that have sold, preferably in the last 6 months.
Sign it and mail it! Allow several weeks before you call and check on the status. If it’s accepted you’re golden. If it’s denied, there will be a more formal application and appeals process available to you.
So if you get a letter from a company purporting to specialize in reducing your property taxes, don’t take the bait and pay a fee. You can do the very same thing they can do….. and you can do it for FREE!
We have a vacation home in Bullhead City Arizona. My property taxes this year increased 1800.00. I contact mohave county and they said the increase was based on the assessed value of my home. Last year my property tax was based on 75% completion of the home. This year they appraised it based on 2006 home sales in the area. She noticed that next years values have already dropped 140,000.00 so next year my taxes would be lower.
posted on November 2nd, 2009 at 7:33 amI know here in california I receive a card stating the value of my property here, but I told mohave county I never received an new appraised valuation of my property. She said that I already missed the cutoff to appeal my home’s worth. At this point, this year, is there any way I could lower my property taxes?
Good morning Angela,
For Mojave County Arizona the 2010 tax appeal deadline was April 14, 2009. However, you can still appeal prior to December 15, 2009 to the Tax Court. Below is the link to the Mojave County website:
http://www.co.mohave.az.us
From the county Home page, under Departments, click on Assessor. On the Assessor page, in the left column, click on Real Property Appeals. This page has information on the appeals process and includes the link to the Tax Court.
Hope this information helps. Good luck!
posted on November 2nd, 2009 at 9:52 amIf I have a first & second mortgage that equates to the morethan my home is worth, am I allowed to do this? I know that my home is worth at least $100K less than we owe on it. I wasn’t sure if this was even relative, but was hoping you might help answer that question for me.
posted on November 10th, 2009 at 8:08 pmGood day Nancy,
The amount paid for property tax on a property is based on two factors:
• The tax rate
• The assessed value
The tax rate is set by law and is applied equally to all properties and is not subject to appeal.
The assessed value is determined by the Assessor, in accordance with state laws, and is unique to each property. The assessed value is subject to appeal by the property owner.
Therefore, the amount and number of liens on a property does not affect the assessed value or an owners ability to appeal that value.
posted on November 11th, 2009 at 7:49 am