Category: Uncategorized

Walk the Home with the Assessor

Many individuals allow the tax assessor to wander about their homes unguided during the evaluation process. This can be a mistake. Some assessors will only see the good points in the home – the new fireplace or the beautiful new faucets that adorn each sink. They’ll overlook the fact that other appliances in the home are out of date, and that the roof is warped and needs replacing.

To prevent this from happening, be sure to walk the home with the assessor and point out the good points as well as the deficiencies. This will ensure that you receive the fairest possible valuation for your home.

 

Research Thy Neighbors

As mentioned above, information about your home is available at the local town hall. What many individuals don’t realize is that in many cases, information about other home assessments in the area is also available to the public.

It is important to review comparable homes in the area and general statistics about the town’s evaluation results. You can often find discrepancies that could lower your taxes. For example, let’s say that you have a four-bedroom home with a one-car garage, and your home was assessed at $250,000. Your neighbor also owns a four-bedroom home, but this house sports a two-car garage, a 150-square-foot shed and a beautiful swimming pool. Despite this, your neighbor’s home was valued at $235,000.

Was there a mistake? There probably is an error – unless your property has some other distinguishing characteristics that explain the discrepancy. With all of this in mind, if an error is found, it pays to bring it to the assessor’s attention as soon as possible so that you can get a reassessment if necessary.

 

Limit Curb Appeal

Tax assessors are given a strict set of guidelines to go by when it comes to the actual evaluation process. However, the assessment still contains a certain amount of subjectivity. This means more attractive homes often receive a higher assessed value than comparable houses that are less physically appealing.

Keep in mind, your property is essentially being compared to your neighbors’ during the evaluation process, as well as others in the general vicinity. While it may be difficult, resist the urge to primp your property prior to the assessor’s arrival (which is usually a scheduled affair). Finally, if possible, don’t make any physical improvements or cosmetic alternations to the home (new counter tops, stainless steel appliances, etc.) until after the assessor has conducted the evaluation. (When selling your home, a little primping goes a long way. Learn more in Fix It And Flip It: The Value Of Remodeling.)

 

Don’t Build

Any structural changes to a home or property will increase your tax bill. A deck, a pool, a large shed, or any other permanent fixture that is added to your home will increase your tax burden.

With this in mind, homeowners should investigate how much a new addition might cost in terms of property tax prior to construction. Call the local building and tax departments. They’ll be able to give you a ballpark estimate.

 

Request Your Property Tax Card … And Study It

Few homeowners realize they can go down to the town hall and request to view (or receive a copy of) their property tax cards from the local assessor’s office. The tax card provides the homeowner with information the town has gathered about the property over time.

The card includes information about the size of the lot, the precise dimensions of the rooms, and the number and type of fixtures located within the home. Other information may include a section on special features, or notations about any improvements that have been made.

As you review this card, note any discrepancies and then raise these issues with the tax assessor. The assessor will either make the correction and/or conduct a re-evaluation. This tip sounds laughably simple, but mistakes are common. If you can find them, the township has an obligation to correct them.

Your property taxes are calculated as a percentage of your property’s assessed value. If your property’s value is assessed incorrectly high, it will leave you with a property tax bill that is much too high.

Exemptions

Property tax exemptions are granted to help minimize the burden on taxpayers. In addition to exempting personal household property and business inventories, state law provides homeowners who live in their homes with a $7,000 reduction in taxable value. Qualifying homeowners file a one-time exemption with their respective county assessors to claim the homeowner’s exemption. California law also provides qualifying disabled veterans with a basic $100,000 exemption on a principal residence and up to $150,000 under certain conditions.

Tax Rate

Although county governments are solely responsible for assessing, billing and collecting property taxes, California law caps the property tax rate at 1 percent of assessed property value. However, state law also allows the standard property tax rate to increase only to help local governments meet debt obligations from bond issues approved by voters. Still, according to data from the California Board of Equalization, tax rates among counties throughout the state are only slightly higher than 1 percent.

Value

County authorities determine the value of the assessed property based on taxable value, which is the basis on which taxes are calculated. For example, in California, county tax assessors use the lowest figure between adjusted base year value and current market value to calculate property taxes.

Assessment

County assessors assess the value of all taxable property every year. In states like California, county tax assessors are commissioned to make an inventory of eligible property and enter it on local assessment rolls. An assessment roll is a list of all taxable property in a given county. Once inventoried, assessors determine the appropriate tax on behalf of the owner to ensure that property owners pay the right amount of tax every year.