Owing a property or home is expensive especially in those areas where property taxes are extremely burdensome. The tax bills on properties have been rising steadily over the last few years. These taxes keep on coming even after paying off the mortgage.
Most people do not know how to calculate property tax. Incorrect assessment of taxes can lead to over-assessment of a property. The following are some of the practical tips that are helpful in assessing a property when calculating taxes. Following them will help you in saving money in the long run.
Understanding the process
The local governments send assessment notices at the beginning of every financial year. These notices provide the required contact details. Anyone disagreeing with the assessment process is supposed to contact the relevant authorities via the contacts provided. Anyone who is interested in making an appeal is also supposed to fill the same forms. There are specific time frames that are provided for filing property related cases. These time frames vary in different areas. In most cases, it ranges from two to six weeks.
Asking for property tax cards and reviewing them
Sometimes this card is included in the assessment notice. You can also access it online if it is not provided. Alternatively, homeowners can obtain these cards from local assessor’s offices. These cards are mainly used by assessors when they are determining the home value. The value of a home is determined by the property’s size, dimensions of the garage, and the number of bathrooms and bedrooms among others.
Any discrepancies in the cards should be checked. Sometimes you might find some common errors in these cards. Any issue that you might come across such as incorrect details should be raised with tax assessors. These are the professionals who are authorized to make corrections and conduct a re-evaluation.
Gathering evidence in the neighbouring houses
This involves researching some homes in the neighbourhood to make a comparison. The houses chosen should be comparable in size. Get to know how much they were sold. Alternatively, you can do this by comparing the available homes in real estate sites. This will ensure that the assessor does not overvalue your house.
Avoid building onto your house
Making some structural changes to a home can increase the tax bills. Tax bills are directly related to the home value. Adding a new deck, bedroom, swimming pool or any other permanent fixture in a home will increase your tax burden.