I was able to get my tax assessed value decreased by over $100,000! Are your property taxes too high?
Many folks received their 2012-2013 Property Tax Statements and were surprised that their taxes didn’t decrease even though the market value of their home has decreased significantly over the last few years. You may be able to save thousands in property taxes by appealing the value.
What Do the Values On Your Tax Statement Mean?
When you look at your tax statement, you will notice there are two values listed – the RMV or Real Market Value and the AV or Assessed Value. This year, many people are complaining about their values going down 30-50% while taxes continue to go up. And of course, homeowners want to know if there is any recourse they may have.
First of all, it is important to know that you are taxed on the lower of the two values listed on the statement. This will be reflected in the column that says “Taxable/Tax Assessed Value”. Also of use to know is how the County Tax Assessor calculates your taxable value. The home value for your tax bill is computed using January of the same year. So for tax bills that were just printed and mailed out in October 2012, the value is based on your home’s value in January 2012. This value is determined by looking at comparable sales from September of the prior year to March of the current year.
How Do I Confirm An Accurate Value?
There are two ways you can go about finding out what may be a truer value of your home; you can either contact a real estate agent and request 3-6 comparable properties that have sold between September 1, 2011 and March 1, 2012 – or you can order an appraisal. An appraisal can cost as much as $500 on average but a CMA (Comparative Market Analysis) done by my team will cost you nothing.
What Do I Do to Close the Gap On My Assessed/Taxable Value?
Once you do find that your assessed value is higher than what it should be, you can visit your County Tax Assessor’s office and request a reassessment. The assessor’s office will review your 3-6 comparable sales and determine if they are willing to change the value of your home. If they are unwilling to reconsider then you will need to complete a tax appeal application and also provide the data on your 3-6 sold properties.
The key is that you need to do this before the end of the year.
You will find contact information for the Boards of Property Tax Appeals (BoPTA) here.
You can access the property forms and their corresponding instructions on how to complete the appeal application on the Oregon Judicial Department’s Tax Court website.
Of course if you have any questions about this, or any other real estate related topics, please feel free to email me today at [email protected]
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