It’s a good day to be educated on property taxes.
You know what one of our favorite sayings is around here? You don’t know what you don’t know. Until you’ve been educated properly on a subject, you’ve got limited confidence in taking action. So let’s talk about something you may not know.
When it comes to property taxes, most of us don’t bother with the details.
We simply pay what we THINK we owe and get it over with.
That’s a problem because frequently property owners end up paying a WHOLE LOT MORE than what they owe. If you’re not sure whether you’re overpaying, consider this: A staggering 60% of all properties are over‐assessed, but ONLY 2 to 4% of property owners are aware! You might be overpaying your property taxes. But how can you tell?
First, a quick refresher. The amount you pay in property taxes is determined by a few things:
Let’s take a look at an example of how property taxes are usually valued:
For Primary Property with an assessed value of $1,000,000 the calculation would be as follows:
1,000,000 (Assessed Property Value)
x .55 (Residential Exemption)
x .012689 (Example of Tax Levy)
Most property owners pay their property taxes twice a year, but it can be set up to be paid monthly. So once you’re assessed a property tax amount is that it? Or is there something you can do to dispute and pay a lower amount?
Lowering Your Amount
What if I told you, there’s something you can do to appeal the valuation process that could result in tax savings?
That’s right, you can go the DIY route and dispute your property taxes.
There are many reasons why you may want to dispute, here are just a few:
- Perhaps your assessed value is greater than true market value?
- Perhaps your neighbors almost identical house to yours pay a lower tax amount?
- Perhaps you’re entitled to exemptions that weren’t taken into account.
You’ll need to find out which location you go to in order to dispute this. But a quick web search or phone call can reveal the proper location.
Once there, ask questions like, “How was this value arrived at?” “What type of valuation was used?” “Were all the exemptions incorporated?”
Get Some Expert Help
If you are one of those people that would rather someone else be getting their hands dirty, there’s obviously trusted experts ready and eager to help.
Most the time, a real estate agent is willing to do a free report for you to see if the value of the property tax assessment is too high. They do only look at market value in this scenario. If you want a more in depth analysis that often leads to a greater change of lowering the property tax amount, there are services out there that do that.
We have a client, Property Tax Solutions that will look into every last detail that could affect your tax assessment and assist you throughout the process. They help clients to lower their tax liability in every kind of real property – commercial, residential, and even undeveloped land. If they’re not able to lower your property tax, they won’t charge anything.
If you want to learn more about how they could help you, visit: PropTaxSolutions.com to contact them. I also need to disclose that we do NOT make any money for this recommendation.
If there is a way to keep more of your money, wouldn’t you do it?
One of our philosophies around here is to be smarter with your financial situation instead of going through the motions, rock the boat a little and determine if you are missing out on more cash in your pockets.
Be more proactive.
More money for you means, a better economy. When you have more money to do more, you’re helping and changing people’s lives in a positive way through your products and services.