The Appraisal Institute offered suggestions May 5 to help homeowners make the appeals process easier regarding their local property tax bills. The announcement comes at a time when many U.S. homeowners are beginning to receive their tax bills.
Homeowners who are considering property tax appeals should be prepared with all the relevant information and be mindful of local rules, the nation’s largest professional association of real estate appraisers said.
The amount of property taxes due to local municipalities typically is based on the location and assessed value of the home. Consumers also should understand that the assessed value of a property can change over time if, for example, improvements are made.
“There can be a big difference in property taxes from county to county and state to state. Regardless of where one lives, it’s important to know how property taxes are calculated locally and to follow all related legal requirements,” Appraisal Institute President Lance Coyle said.
Although consumers might think they have a good idea of whether their property has been properly assessed, it’s much easier to make the case that their taxes are too high if there’s a professional appraisal to back up the argument. Homeowners should consider having an independent appraisal prepared and present the appraisal report to the assessor, because appraisers are third-party experts who provide credible opinions of value. Consumers also should be mindful of Internal Revenue Service (IRS) rules.
“Many homeowners recently filed tax returns with the IRS. Looking ahead to future tax filings, it’s important to understand that the agency has specific rules about the deductibility of property taxes, and consumers should check with their tax professionals accordingly,” Coyle said.
There can be various stages of tax appeals based on the municipality, and Coyle suggested that homeowners consult with their assessor’s office or a local appraiser who can provide expertise. An experienced appraiser also can shed light on the local appeals process.
“Homeowners should be sure to hire a highly competent, well-qualified appraiser, such as a Designated member of the Appraisal Institute,” Coyle said.