It is the financial responsibility of every homeowner to pay property tax. The revenue from this tax is essential to keep the community running and fund public projects, construct roads, keep public services like law enforcement and fire departments running.
Real estate taxes, obviously is a significant source of income for the local government. It can, however, be a financial burden to homeowners. This is because property taxes increases in time. As long as you owe a property, you must pay the real estate taxes.
We, however, have the following tips to help reduce your real estate taxes:
One of the ways people overpay on their properties is when the assessor gives an estimated and false evaluation of the property. This happens when the assessor does not have full access to the property; hence, he has to guess or assume the features in the building alongside the improvement. These assumptions, without a doubt, could inflate your taxes.
You can get this document from your local assessor. You could also get this info from the internet. Explore this card and make sure the square footage, the number of bedrooms, and bathrooms are correct. Check the year of construction, the fixtures stated in the card, and heating and cooling installations. Make sure that what is on the card corresponds with what you have installed in your home.
Real estate taxes are public info. Hence, you are free to know what your neighbor is paying as well. The flaw with this, however, is that it is only applicable if the homes can be compared. In other words, roughly the same size, with the same features and installation. Should two homes compare reasonably, and your tax bill is higher, it could be a mistake in evaluating your home.
It would help if you also considered the price of the house with respect to the value of the home. This, however, is not valid for a foreclosed house as it is not classified as an accurate market sale. If you, however, paid less than the value and the deal was fair to both parties, the tax office could be interested.
If your tax card shows a lot of discrepancies, you might be better off hiring an independent home assessor. This is particularly helpful if the value of your home is higher compared to people around, provided the home is relatively similar.
You can get a home appraisal from the local real estate agent. The appraiser must be experienced in assessing your property type. To guarantee an accurate assessment, hire someone who is a member of the multiple listing system (MLS).
After hiring a private appraisal and comparing similar houses, you should now be able to decide if you deserve some tax break. Also, you should have enough evidence to make a case with the local tax office. With evidences, the local appeal board will likely take your case seriously.
In addition, be sure to find out about the local tax office at the local office. Be sure you are not missing deadlines that could result in penalties. Also, ask questions about any part of the tax process that is not clear.
Even after correct evaluation and assessment of your property, you might still qualify for reduced taxes. Many states offer reduced real estate taxes. If you meet some requirements as a property owner, you could be eligible for some programs that can reduce your real estate tax. These include tax exemption for seniors, veterans and their surviving spouses, folks with disabilities, and people with agricultural investments.
Also, some states give out homestead tax breaks. With this tax, you are spared of some percentage or some dollar amount from the value of the property tax. This property, however, must be your primary residence for you to qualify for homestead tax breaks. In addition to living in the house, you need to meet at least one of the requirements for age, military status, income or disability
Concluding Remarks
The following steps will go a long way in reducing your taxes on real estate properties.
