It’s important to take time to understand your real estate assessments, your property tax bill, and most importantly, whether or not you are paying too much in taxes. A large amount of revenue that is raised for your local schools, libraries and hospitals, etc. comes from you – the homeowner – and the property taxes that you pay. When real estate values decline, your local government gets less money from property taxes. That said, you’ll want to keep a close eye on your tax assessment letter for any potential discrepancies or mistakes. Your tax assessment letter will show what your local government thinks your property is worth. Your assessor will normally use one of two methods to figure out that amount. The method most commonly used is that from comparable home sales in your area. If there aren’t recent comparable sales the assessor will calculate how much it would cost to rebuild your home and add that price to your land value. With so much ground to cover, many assessors rely on formulas that assess neighborhoods or streets instead of one house at a time. So read your real estate assessment letter carefully and challenge it if the amount seems too high!

You’ll also want to see if you qualify for any property tax exemptions, as this could alter your tax bill. Whether you contest your tax bill or qualify for an exemption, you could save some money. For more information you should go online or call your local tax assessor’s office or your CPA.

Posted By: Jeff Barnett