is there anyway to obtain a reduction in property taxes? i’m looking at a home i want to place a bid on but the property taxes are outrageous. they seem to be higher than similar homes. what is the process…and possibly some tactics/strategies i can use to try pay lower property tax?
Every taxing authority has a procedure to appeal tax burden…call your taxing authority to find out the procedures.
BTW - I read somewhere recently that a high percentage (like over 50%) of tax appeals were settled in favor of the owner, so it’s probably worth your while.
Keith
This has become such an issue in Los Angeles County, that the County has volunteered to review every property that’s been purchased in the last couple years. Usually the property owner has to petition for the review, but LA County is going to do them all without petition. The results come out in June, I believe. I fall into the catagory that being reviewed so I’m anxiously awaiting the results of mine.
Knowing California and their financial straights, I’ll bet a lot of folks get a real “treat”!
Keith
This is a great way to put money back in your pocket and is easier than you might expect. You have to convince the review board that their assessment is out of line with market reality. Bring true comp property details to the meeting and a list of repairs that the property needs to bring it up to market. As mentioned check with your local taxing authority to determine the proper procedures.
thanks for the replies fellas.
71tr,
are you saying this is something that I should address before i put the offer in on the house? or after i make the purchase (if i purchase ;]).
if you could elaborate a little more as to the procedure i would do, that would be great.
i believe you mean if the house is purchased, i would bring comps and also a list of repairs to bring the house up to par with the market and hope to get a reduction that way?
ryanpal,
That is correct, you won’t seek a reduction in the property’s assessed value until you are the legal owner. Once you close on the property get a copy of the appraisal and recent sale of comps in the neighborhood. You want to show that your assessed value exceeds that of similar homes. If your taxing authority seeks to assess at 100% of fair market value then showing that recent market sales are well below assessed will help. Also, showing that your property is in need of significant repairs will help your cause since the assessed value rarely incorporates these non-obvious needs. Again, check with your local taxing authority for the proper procedures and time frame.
Calif is special (in many ways) as the tax is set by the sales price (Prop. 13 passed in the late 70’s).
Most states, I think are done by assessors/appraisers and while I have personally “won” many appeal the amount of decrease is pretty small (i.e. 10%). No way to deal with up front ( I think), but don’t count on a huge drop. I would love some success stories otherwise.
Is it possible the house is vacant and there is no homestead on it? I recently looked at a foreclosure where I found out the taxes where around $5000 yr without the homestead and $3000 yr with the homestead. Like others said, once you are in the house you can go and appeal you taxes. This is happing a lot in Michigan and from what I hear people have been fairly successful at getting adjustments.