PROCESS FOR CHALLENGING TAXES

THE PROCESS FOR CHALLENGING YOUR TAXES

Step 1--Understand the process.

Step 2--Know the valid reasons for which you can appeal your taxes.

Step 4--Gather information to determine whether or not you should challenge your taxes.

Step 5--Analyze the data you have collected.

Step 6--Prepare your documentation for an appeal.

Step 7--Discuss your case with the local assessor.

Step 8--Present your case to the tax review board.

Step 9--Appeal to a higher court.

THE VALUE OF YOUR PROPERTY

Since an overvalued and overassessed property is one of the most common and most successful grounds for challenging

your tax bill, it is extremely important to have a clear understanding of just how valuation works. Establishing the proper value for your property often is the key to your appeal. To win your case on the basis of establishing your property's value at a level lower than the one the assessor used, you must demonstrate that value using one of the recognized approaches to value. Therefore, it is vital for you to have a complete grasp on how to value your property. Let's learn more about how property value is established. But first, here is a highly condensed definition of each approach to value:

The Market Approach

This method, which is sometimes called the comparative sales approach, is a comparison of the market value of your house to the market value of other homes of equal age, size, location, etc. Sometimes we refer to this as "obtaining comps." The market approach is, in general. the best approach to value and the one you should he using for your tax appeal.

The Equity Analysis Approach

This approach compares the assessed values of similar properties on a square footage basis. It can be used in the absence of current market data on comparable properties in your area, i.e., when there have not been any recent sales of residences like yours within a reasonable proximity of your home.

The Cost Approach

The cost approach is used in valuing residential. industrial, commercial, and special-purpose properties, or when no market data are available. It is an estimate of the cost to acquire an acceptable substitute for a property with the same utility and similar improvements.

The Income Approach

There is one other approach to value, known as the income approach. This method won't apply to most people looking for property tax relief, but it's good to know about in case you run across it during your researches. Generally, it is used for income-producing properties such as apartments or commercial office buildings. Income-producing property is typically purchased for investment purposes, and from the investor's point of view, earning power is the critical element that affects the properties value.

Illegal Assessments

An illegal assessment is one that should not have been made at all, or not in the manner in which it was made.

Mechanical Errors

Many times you'll find miscalculations, clerical errors, and plain mistakes in the tax records that are used to determine your tax bill. As discussed earlier, you will be checking for these types of situations when you inspect your property record card and other records used at the tax assessor's office. Here are some of the things you should do to check these records.

In Conclusion

If you have put forth the effort to properly analyze your property tax situation and you decided to appeal your taxes for valid reasons, congratulations are in order. You probably have won your appeal. You have beaten city hall-an accomplishment you may not ever have dreamed of or even thought possible.