Moneyanatomy - personal finance blog

Wednesday, April 12, 2023

How to appeal property taxes increase

 


We have a piece of land about 1 hour away. It is purely recreational. It is mostly up the hill and 95% of it is wooded. There is a little, falling apart, shed built by the pervious owner. The access road is not in good condition and it it rains, you better don't go there, you might get seriously stuck in the mud. Basically 10 acres of woods with a small spot for an occasional picnic.

Last Friday I received a letter from the county, saying that the property value will increase form $53,000 to 93,000.

Which means, that the yearly property taxes will double.

Considering usability of the land, I felt is not appropriate at all.

My first thought was to put that land up for sale. But it is not an easy piece to sell. In may hang out there on the realtor.com for months. And during that I will have to pay the double taxes.

The updated property value will be visible to buyers and if I adjust the sale price higher, it will never sell. if I keep it low, the byers may think that something is seriously wrong with the land. What to do?

The county letter gave a phone number to call with questions but gave only one week time for the calls.

On Monday I started my research. My plan was to call them surprised about the tax increase, and staying friendly, ask why did it happen, explain that the value actually only went down and ask to adjust the value back to $53,000. If That wouldn't work, I already composed an appeal letter to mail to them. Writing the letter helped me to organize the arguments for my phone call.

I called and asked friendly to connect me to someone who can help me with the issue of the property value increase which I thought could not double in a mysterious way.

The woman on the phone said that she can talk to me. She explained that they have to adjust the property values to the current market prices and that was the reason for the increase.

I replied that the property is very difficult to access, especially on the rainy days there is basically no way in or out. That the shed is falling apart and we don't even enter it. That a house opposing the entrance road is a hoarder house with a lot of junk outside. And that there is no way it would be a desirable place for someone to build a house.


I had to give her the parcel number, she looked it up, and said that with all those details she will be able to depreciate the property to $56,000.

I thanked her and was happy that it was sorted out on the phone and I didn't need to mail my appeal letter.


Below is a summary of my research of what is needed for the preparation of the appeal.


If you believe that your property taxes were increased unfairly, you have the right to appeal the assessment. Here are the steps you can take to appeal the tax increase:

  1. Understand the process: Before you begin, it is essential to understand the process of appealing property taxes in your area. You can start by contacting your local tax assessor's office or visiting their website to learn more about the appeals process.

  2. Gather information: Gather all the information you can about your property and the tax increase, including your most recent property tax bill, property records, and any documentation that shows the value of similar properties in your area.

  3. Check for errors: Review your property tax bill and assessment to see if there are any errors. Errors in the assessment, such as incorrect measurements or a mistake in the property classification, could result in an incorrect tax bill.

  4. File an appeal: If you decide to appeal, you will need to file a written appeal with your local tax assessor's office. Be sure to include all the information you have gathered and any supporting documentation.

  5. Attend a hearing: Once your appeal is filed, you may be invited to attend a hearing where you can present your case to a board or panel of assessors. Be sure to bring all relevant documents and evidence to support your case.

  6. Await a decision: After the hearing, the board will review the evidence and make a decision. If your appeal is successful, your property taxes will be adjusted accordingly. If your appeal is denied, you may have the option to appeal the decision further.

Remember that the appeals process can vary depending on where you live, so be sure to research the specific procedures in your area.


Appeal letter:


Dear [Tax Assessor's Office],

I am writing to appeal the recent increase in property taxes on my [insert property type here] located at [insert property address here]. I was surprised to receive the new tax bill as the property's value has not increased, and no improvements have been made to the property. In fact, the road access to my property has deteriorated, and there have been no changes compared to previous years.

Additionally, I want to bring to your attention that my property has no water, sewer or electricity connection, which significantly reduces the value of the property compared to other similar properties in the area.

I have reviewed the assessment of my property, and I believe there may have been an error in the valuation. I have gathered information about similar properties in the area that have been assessed at a lower value, and I believe that my property's assessment should be adjusted accordingly.

I respectfully request a review of my property's assessment and tax bill. Enclosed, please find copies of my property records and other relevant documents that support my appeal.

I would appreciate the opportunity to attend a hearing to present my case to a board or panel of assessors. Please inform me of the date and time of the hearing, and I will make arrangements to attend.

Thank you for your attention to this matter.

Sincerely,

[Your Name]



Relevant documents to submit:


When appealing a property tax increase, it's important to include as much relevant documentation as possible to support your case. Here are some documents you may want to consider including:

  1. Your most recent property tax bill
  2. Property records, including the current assessment and valuation of your property
  3. Documentation of any improvements or changes made to your property
  4. Copies of property records for similar properties in your area, including their assessed values and taxes paid
  5. Documentation of any factors that may reduce the value of your property, such as lack of water, sewer or electricity connection, or road access problems
  6. Appraisal reports, if available
  7. Any correspondence with the tax assessor's office regarding your property assessment
  8. Any other relevant documentation or evidence that supports your appeal.

Including as much relevant documentation as possible can strengthen your case and increase the likelihood of a favorable outcome.


Attaching photos of problem areas to your appeal letter can be helpful in supporting your case. Photos can provide visual evidence of any issues or factors that may reduce the value of your property, such as poor road access, lack of water or sewer connection, or any other damage or issues that may affect the value of your property.

Including clear and detailed photos can help the assessors better understand the issues you are facing and provide them with more context when considering your appeal. Make sure to label each photo and provide a brief explanation of what it depicts.


If you have any questions or concerns about what to include in your appeal letter or what documentation to attach, you can contact the local tax assessor's office for guidance. They can provide you with more information on what types of documentation and evidence are most effective in supporting an appeal.

To obtain copies of property records for similar properties in your area, including their assessed values and taxes paid, you can contact your local county property appraiser or assessor's office. These offices maintain records of all properties in the county and can provide you with information on the assessed values and taxes paid for properties similar to yours.

You can also access this information online in some areas. Many counties have a website that allows you to search for property records, including assessments and taxes paid, by property address or owner name.

If you are having difficulty finding the information you need or have any questions, you can contact the property appraiser or assessor's office directly for assistance. They can provide guidance on how to access the information you need and help you with any questions or concerns you may have.

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