is it true that when home values drop taxes should drop too/ If so, how can I get a lower assessment?

Answer 1

This is an issue I had come up many times in my career, recently I developed a website to help folks dispute unfair assessments. LowTaxRate.com
It only seems fair that your taxes should go down, If my income dropped 20% so would my income tax. Local assessors and municipalities are never going to remind you that you have overpaid, it is up to you as the taxpayer to fight. Good Luck, I hope my site helps and I am adding everyday to it.

Answer 2

That's a common misconception. If one home in the neighborhood is losing value in a general market decline then all homes probably are. The taxing authority divides their entire budget by the total property value in the district to arrive at a tax rate. Therefore if they are tracking values consistently (some do and some don't) then your tax bill could still rise even though the assessed value has dropped.

That said, it's always worth challenging the valuation if you think it's suspect and can prove your claim. Bear in mind that many people may be doing exactly that. A savvy assessor will drop ALL property values by an amount close to the average decline in values as established by recent sales. That leaves you with nothing to contest, but your total property taxes could still rise based upon the total budgetary needs of the district.

Answer 3

It doesn't happen that way. You can only win an appeal on your assessment if your assessment is out of line with comparable houses - if prices have generally dropped, yours would still be in line with the others even though the actual number was high.

If there's another general assessment, then the assessments on all the houses might be lowered, but the tax rate would then most likely be increased to give the same revenue, so you'd be right back where you started from.

Answer 4

At one time assessments were the basis for taxes on property. The assessor of the town would apply his criteria to the dwelling( # of rooms, location,size of house, size of lot, proximity to school, fire) determine a value to which the municipality would apply a mill rate which would then calculate the tax. Now our " Famous Legislators" passed laws where property value is based similiar structure selling price at time of reevaluation times the mill rate. Our town hired an assessing company. My taxes jumped 23% when the town budget increased 6%. Housing prices have gone down but there will be no change in the value base for another 8 years. Only in America!!

Answer 5

The operative word here is "should". But, not in your life! Taxation agencies NEVER adjust taxes in favor of the home owner. They ALWAYS increase the value of any property to accommodate "inflation". I tried to justify a devaluation of my property which has NEVER had any improvements in 36 years and I got a 2% reduction on my taxes. The work that went into justification, MLS, loss of wages while away from work doing research and real estate sales graphs cost me well over $500 and my savings was 2% of $6,000.00 The stress alone would have been worth 2% to me. If you are successful in doing it, publish a book and I'll buy the first edition. I have yet to see a de-valuation except when you're trying to claim a benefit based on property value.

Answer 6

Your property taxes are based on 2 things. The tax rate set by the taxing authorities and the assesment or appraised values determined by the appraisal district in your area(usually county). It is possible for your taxes to increase because of a rate increase, appraisal increase or both. Make sure you know what your fighting.

As far as the appraisals go it is one of the most frustrating things in the world. Appraisal districts will assign a value to your property typically based on what they consider similar properties have sold for in the past year or so. Alot of times you can have a run down property appraised for the same value as a recently remodeled property because the house accross the street from both of them sold for xx dollars a square foot.

Best thing to do is arm yourself with as much information about your house and neigbors as you possibly can. Get information on what houses have sold in your area and if possible find some with your floor plan if you live in a area with common builders. If your house needs repairs such as a new roof, paint or fence, bring ACTUAL estimates from several contractors detailing the repairs need and cost. You cant just say, "yeah I need a new roof so that would probably cost me 8K".

At the end of the day the appraisal is so arbitrary its sad. Problem is you can't just walk in and say you heard housing values are dropping so wheres my tax cut. It could very well be they adjusted your appraisal down but those lovely people you elected as your city officials decided they needed new computers in the schools and jacked up the rates.

Answer 7

Property taxes are based upon the "assessed" value and not the actual value at the time. You can typically submit an appeal for a reassessment. Your local municipality will have the rules and paperwork necessary for that. The homeowners association fee will likely not be affected, that goes for costs associated with the development and is not subject to change based upon home values.

Answer 8

call your county assessor's office and ask how you request an amendment to your tax/assessed value. The value is based on like homes in your neighborhood and sale prices of like homes in your neighborhood.

Answer 9

You need to talk to someone at your County Courthouse who works in the Property assessment office.

Answer 10

I don't think that is the way it works. They go by what you paid for the house. anyway in some states that is the way it is.