Property Tax Assessments on the Rise

Property Tax Assessments on the Rise

 

Falling home prices and rising property-tax assessments are fueling a grass-roots tax rebellion.  Homeowners are lodging record numbers of appeals, fighting against rising assessments that are, in many cases, pushing up annual tax payments significantly.

 

The Problem: Tax assessments didn't keep pace with soaring property values in recent years. Now, assessments are catching up at the worst possible time, just as property prices soften. In theory, municipalities are supposed to roll back tax rates to offset rising property assessments. But many don't do it regularly, or do so to a lesser degree than they should.

 

A surprising number of homeowners don't realize they can fight the assessment. "It's the best-kept secret," says Marc Vorchheimer, a financial planner in Nanuet, N.Y., who is gearing up to help several clients appeal their assessments.

 

Assessors and appraisers say they recognize that mistakes are certain to occur.  After all, values are generally based on mass assessments of tens or hundreds of thousands of properties in a short period.

 

Facts to help make your case include a home's square footage, the number of rooms and the size of the garage, basement and acreage in cases where the assessed value is based on flawed dimensions.  Data on comparable sales in the area can help bring your value down, if your assessment is higher than the selling prices of nearby homes.

 

Have you been hit with a tax assessment that seemed unreasonable?  Did you take any action or do anything about it, or just pay it?  Tell us about your experience with the tax man.  Click the COMMENT link below and let us hear from you.