Property taxes are the taxes imposed on real estate properties, whether commercial or residential. These taxes serve as a massive source of revenues for the local governments that they later utilize in public services, including health, education, infrastructure, or safety.
However, most property managers consider it a burden and try to escape their responsibilities. The reason behind this is that the property tax is much higher than what they expect.
Instead of escaping from paying taxes, they can file a property tax appeal if they think it’s unfair. Learn more about when you can file a property tax appeal.
Should Property Managers File a Property Tax Appeal?
The answer is yes, but many are unaware that it’s their right to file against any unfair decision of tax authorities.
This unawareness leads them to evade property taxes, resulting in heavy revenue losses to the government. According to a study, most property managers do not file any appeals against wrong tax assessments.
Planning appeals serve as a safeguard against unfair decisions of local authorities.
Here are the conditions when property managers should file a tax appeal:
1. Clerical Errors
The most common reason for the wrong assessment of property taxes is clerical error. Such errors can occur at any stage in the assessment process due to incorrect data entry, misrepresentation of facts and figures, or wrong property classification.
The tax assessed could be higher than the actual value in all such situations. Property managers can submit correct data with proof records and file an appeal on that behalf.
2. Incorrect Property Assessment
The local taxation authorities can wrongly assess your property due to many reasons.
Sometimes your property might be assessed at higher rates in comparison to similar properties. Market value disparities lead to unnecessary tax burdens on the owners.
Due to changes in property conditions, they might not consider that during tax assessment.
If any data related to property is inaccurately mentioned in the assessment.
In all these situations, property managers can take a stand against the unfair decision.
3. Discrepancy in Property Description
Most of the time, the tax department fails to properly examine the property conditions, resulting in inaccuracies in the property description and wrong tax evaluation.
These inaccuracies could be related to your property size, number of rooms, bedrooms, or bathrooms, or any other property feature misinterpreted.
In all these cases, the tax authority will evaluate higher property tax than it should be. If so, you can file a tax appeal by sharing photos of your property or any written proof of its description.
4. Overvaluation of Property
When the taxation team overvalues your property, your tax burden will increase. This means if the recent sales price or the market value of your property is lower than what the assessor has valued you can appeal on that basis.
To make your appeal stronger you can collect some evidence of sale reports of similar properties in your area.
5. Unapplied Exemptions
There are specific property tax exemptions that a property can be entitled to, like a senior citizen exemption, a homestead exemption, or any other exemption by local laws.
If your property qualifies for any such exemption and it’s not included in the assessment; you can file a tax appeal.
6. Changes in Property Value
When the value of property declines for some reason, that could be a natural disaster, deterioration of property, market downturns, or any other reason, and it is not taken into account by the tax department, resulting in higher taxes.
You have the right to appeal against the received tax assessment. Always ensure the specific jurisdictions applicable in your area before raising an appeal.
What’s the Best Way for Filing Your Property Tax Appeal?
Not sure how to file a property tax appeal!
Here is the solution- Consult a professional property tax appeal service provider.
The reasons behind this are many-
The process of filing a formal appeal in local taxing authority could vary in areas you might not be aware of.
There is a specific deadline to file an appeal that one shouldn’t miss.
You need to arrange all the required crucial documents along with your appeal. This can be very complicated.
The party appealing might have to be present for the formal hearing if they don’t have any representative.
The legal frameworks are complex and require an in-depth knowledge of every aspect.
Consulting a professional expert can save you time and unburden you from all the legal complexities.
Conclusion
If you also think your property tax assessment is higher than it should be, don’t hesitate to file a property tax appeal and reduce your tax burden.
Based on the grounds mentioned above, you can appeal to the local tax authorities to revisit the assessment process.
However, it’s not an easy process, so seeking professional assistance is more advisable.