Could your tax bill be too high?

Just bought a new home? If so, it’s the perfect time to check whether your property tax assessment is accurate. If your home is overvalued, you could end up overpaying on your property taxes — and filing an appeal can result in significant tax savings.

Catching errors right after closing on your home can also help streamline the appeals process, as you’ll have most of the necessary documentation on hand.

There are a number of reasons to file a property tax appeal, including:

• Under-depreciated (overvalued) assets.
• Outdated entries for assets that have been sold, discarded or moved.
• Inaccuracies in property details such as age, land acreage and liveable square footage.
• Multiple assessments of the same property due to clerical errors in taxpayer name or address.

The National Taxpayers Union Foundation (NTUF) estimates that 30-60% of taxable U.S. property is overassessed. A successful appeal can result in tax savings for years to come. In fact, many homeowners could save $100 or more per year by appealing their property’s assessed value.

How the Appeals Process Works

If you suspect your property has been overassessed, you typically have 30-60 days from the time of valuation to appeal. Start by notifying the assessor of your intentions. Sometimes this can be done with a formal letter, or you may be required to complete an official notification form.

A confirmation response will outline the next steps. If your appeal is approved, you’ll receive a new valuation and updated property taxes. If the case isn’t so cut and dry, you may be scheduled for an official hearing. In the meantime, it’s best to pay the (potentially incorrect) assessed value to avoid late fees and penalties. You’ll be reimbursed if the appeal is approved.

Are you hoping to start your homebuying journey? Reach out if you have any financing questions.