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In the U.S., we are required to pay property taxes on our homes and other real estate holdings. Property taxes are a type of tax levied on the value of properties. The property tax is a local tax, which means that it is administered and collected by local governments. The proceeds from the property tax are used to fund local services, such as public education and police and fire protection.
Property taxes are a critical source of revenue for local governments in the U.S. By requiring all property owners to pay these taxes, the government can spread the cost of providing essential services to everyone.
While most of us simply grumble and go ahead and pay them, did you know that you have the right to dispute your property taxes?
In this article, we’ll explore when and how to dispute property taxes.
What To Know Before You Learn How To Dispute Property Taxes
The first step is to determine whether you are actually able to dispute your property taxes. In most cases, you can only dispute your property taxes if you believe the tax assessment is inaccurate.
For example, you may be able to dispute your property taxes if you believe that the government has overvalued your home or if they have classified your home as commercial property when it should be residential.
If you believe that your property taxes are too high, you may also be able to dispute your taxes on the basis of financial hardship. In some cases, the government will agree to lower your property taxes if you can prove that paying the current tax bill would cause undue financial hardship.
How Are Property Taxes Calculated?
When it comes to calculating how much property tax you owe, your local government looks at various factors. The assessed value of your home is one key factor, as is the tax rate for your municipality. In addition, tax assessors will look at how much money the local government needs to bring in through property taxes to fund essential services.
The property type and its tax calculation will depend on the local jurisdiction. For instance, a commercial property will have a different tax calculation than a residential property. This is because the commercial property is likely to generate more revenue for the municipality than the residential property. This increased revenue can offset the costs of services that the municipality provides to businesses, such as trash collection and street cleaning. In contrast, residential property is not likely to generate much revenue for the municipality, so the tax rate on this type of property is usually lower.
The tax on a commercial property is also generally higher than a residential property because businesses can typically afford to pay more.
Related: How is Texas Property Tax Calculated?
When To Dispute Your Property Tax?
If you receive a property tax appraisal that you believe is inaccurate, you should dispute it within the designated time frame. Generally, you will have a set amount of time after receiving the appraisal to file a dispute. It is important to act quickly, as the sooner you dispute the appraisal, the sooner the process can begin to correct the error.
If you believe that your property tax appraisal is inaccurate, the first step is to contact the appraiser and explain your concerns. You may be able to work with the appraiser to correct the mistake without going through the formal dispute process. However, if you are unable to reach an agreement with the appraiser, you will need to file a formal dispute.
How Can You Determine If Your Property Tax Is Considered Fair?
There is no one definitive answer to this question, as the fairness of a property tax appraisal can vary depending on individual circumstances. However, there are some things you can do to try and determine if the appraisal is fair or not.
For example, you can compare the appraisal amount to recent sales prices of similar homes in your area, or you could get a second opinion from a real estate appraiser. As you begin to gather documents, you’ll know more about your case. If you feel that the appraisal is unfair, you can contact your local government or tax assessor’s office to file a protest. Many homeowners hire property tax professionals to go through this process for them.
Should You Always Dispute Or Protest Your Taxes?
It is vital to always dispute and protest your taxes in order to make sure that they are as low and fair as possible. When you don’t dispute or protest your taxes, it can often lead to them being unfairly high. By disputing and protesting your taxes, you can make sure that they are accurately calculated and that you aren’t being overcharged.
Where Should You Start If You Want To Dispute Your Property Taxes?
If you are thinking of disputing your property taxes on your own, the best place to start is by gathering information about how the process works. This information can be found on your local government’s website, or by contacting your local tax assessor’s office. Once you have all the facts, you can start assembling your case.
To dispute your property taxes, you’ll need to prove that the assessed value of your property is too high. You can do this by providing evidence that your home is worth less than the assessed value. This might include evidence of recent sales of similar homes in your area and photos and/or videos of your home. You can also provide information about any repairs or renovations you have made to your home, as this can affect its value.
Once you’ve gathered all the evidence you need, you’ll need to present your case to your local tax assessor’s office. This is usually done in person, but you may be able to do it over the phone or online. You’ll likely need to fill out a form, and you may be able to get help from your local government or an attorney.
If the appraisal office doesn’t agree to lower your property taxes, you are able to appeal their decision. This is done by filing a formal complaint with your state’s Tax Commission or Board of Equalization. If the commission or board agrees with you, they’ll lower your property taxes. If they disagree, you can take your case to court.
Disputing your property taxes can be a complicated process, so it’s important to do your research and get help from a qualified attorney if necessary. Alternatively, consider hiring a property tax service that will make the process easy and convenient. By following these steps, you can make sure that you’re paying only the amount of property taxes that you actually owe.
Related: Texas Property Tax Protest Process: What You Need to Know
Who Can Help You If You Feel Unable To Dispute Your Property Taxes Yourself?
When disputing your property taxes, it is essential to remember that you are challenging the assessor’s opinion of the value of your property, not the amount of taxes you owe.
You will need evidence to support your case that the assessor’s valuation is inaccurate. This may include recent appraisals, sales of similar properties in the area, or repair estimates if your property is in need of repairs.
If you feel unable to dispute your property taxes successfully yourself for any reason, you can seek help from a tax specialist. These companies will often walk through the entire process on your behalf, using their knowledge and experience to gather data, plan an appropriate argument, represent you at the hearing, and more.
If you believe your property taxes are too high, don’t wait to file a dispute. In most cases, you must file a petition within 30 days of receiving your tax bill. Check with your local assessor’s office to find out the specific deadline in your area.
Choose A Property Tax Service That Helps You Save Your Money
If you feel that your property taxes are too high, or if there is some other issue with your tax bill, don’t hesitate to dispute them. The process can be a little complicated, but our team can help make it as easy as possible for you.
Home Tax Shield brings property tax experts to the table who will know exactly how to handle your situation. They’ll not only walk you through the process, they’ll walk through much of the process in your place. Sign up now for a free consultation, and let us help you keep more of your hard-earned money in your pocket.