Anyone Had Any Luck Contesting Property Tax Assessment?
I am just starting through the process of appealing my property tax assessment on a rental property. The assessed value is more than double what I paid for the property. This wasn't an extraordinary deal that I got on the house either. I actually have another property directly across the street that I also bought in good condition for half the assessed value. I have only done the first step which involved the assessors office checking the calculations they used. They managed to drag that 15 minute job out for 2 months! It is already clear that they are going to make me endure the same process that works for the insurance industry. Basically, keep saying no in hopes you will give up and go away. Unfortunately for them, I guess I have a small bit of Churchill in me because I never, never, never(did I leave out a never?) give up.Has anyone followed the process through in their area and gotten satisfaction?
I'm going to move to Utah so I can get that kind of recepton to lowering my taxes.
This is a rather interesting topic.
My experience is that the process is very subjective. In my area, upstate NY, the governments are looking for every bit of tax that they can get. They are not giving taxpayers any breaks.
The Equalization Rate is supposed to be closley tied to the amount of taxes needed by the taxing district and your assessment does matter. If the assessment is too high, you are paying too much.
Yet, in days past, a Tax Grieve was often very successful. The Board seemed to be sticking to the rules and playing fairly.
Today, the law is that the assessments are to be at 100% of market value in NYS. This is OK. However, the tax pressure is really heavy on localities. The Tax Grieving Board is made up of community volunteers, hand picked by the taxing district, who are told the outcome needed and act as shills for the taxing district.
In one case, I collected good data showing that my property was taxed too high by over 30%. The Board lowered me from $53K to$51K, hardly satisfactory. Even today, with a booming market, the property is only worth $45K.
In another case, with a different town, I showed that the property was assessed at least $20K too high. The Board asked my about my rents and justified not lowering my taxes on the basis that my rents can pay for the taxes. This has nothing to do with the prinicple of paying a "fair" amount of taxes based on the value of the property. Should I have lied, saying that I was not getting a decent rent, and expected that the taxes would be lowered?
No matter the method of calculating the taxes or the grievance process, if the local taxing overseerers will not deal with you fairly, then you must go to court. That is your only option. But be warned, I have seen where judges have turned on the people because the taxes were needed by the government and the judges were working to perserve "the system".
Good luck,
Mitchell Goldstein
I imagine that it varies from County to county. In my area it's quite a painless process. There's a deadline (Nov. 1st I think). For about 2 weeks before the deadline, they have a desk in the atrium of the recorders office with people there all day to help you out if you are appealing them. If you show up with a respectible appraisal, HUD, or settlement statement, you've got a slam dunk case. Lowered mine by about 28%. Additionally, I think you can get a refund for the past 3 years because you've (or rather the previous owner) paid too much in taxes. I'm looking into that right now.
Good luck.