How to Prepare for a Property Tax Appeal Hearing

One of the biggest components of home ownership in America is property taxes. Errors in property appraisals may result in over payment. If you feel that your property has been over-assessed, you can appeal against your property tax assessment. The key to winning your property tax appeal can be in its preparation. This is how you may prepare in a step-by-step manner.

Understand the Basics of a Property Tax Appeal

What Is a Property Tax Appeal?

A property tax appeal is a legal procedure in which you are contesting the value of your property –not the tax rate—that has been assessed. The idea is to demonstrate that the local assessor has overvalued your home in the market which has led to high tax bill.

When Can You Appeal?

The deadline to appeal depends on the state and county, though normally, it is in the form of an annual deadline following the receipt of assessments. You should move promptly; some jurisdictions allow you a maximum of 30 to 45 days to appeal.

Review Your Property Assessment Notice

Begin by looking over your property assessment notice. This is a document which indicates the value that your local tax assessor attached to your home.

Key Things to Look For:

• Improved valuation of land and buildings
• Housing description
• Assessment of the previous year

Ensure that nothing is wrong. Mistakes in area or characteristics may have a direct effect on your tax.

Determine If an Appeal Is Justified

Not all high tax bills are erroneous.

To Know Whether an Appeal is Worth Your Time:

Compare to Market Value

• Does the value you have assessed exceed the value of your home?
• See what similar homes have sold recently in your area

Look for Inaccuracies

• Was a finished basement that does not exist included by the assessor?
• Is the square footage exaggerated?
• Minor mistakes can be a basis to appeal

Research Local Appeal Process

Every jurisdiction has rules of property tax appeals.

Where to Start:

• Go to the website of your county assessor
• Search Property Tax Appeal or Assessment Appeal
• Look at the timeline, procedures, and forms needed

Know Your Appeal Level:

Some begin at a local Board of Review or Assessment Appeals Board and some through a formal hearing process. Informal reviews prior to formal hearings are also permitted in some counties.

Gather Evidence to Support Your Case

To demonstrate that your property has been overvalued, you require hard evidence.

Types of Evidence to Collect:

Comparable Sales

• Identify 3 to 5 homes of similar size, age, location, and condition that have sold recently
• Sales are to be less than 6 to 12 months
• Ideally, they ought to have been sold lower than what you have ascertained

You Can Find Comps Using:

• Websites of realtors
• Your local MLS should you have access
• An agent or appraiser who is licensed

Professional Appraisal

An appraiser may provide you with a formal valuation report that is provided by a licensed appraiser. This can be an effective weapon in your persuasion, particularly when the price is justified by the possible savings.

Property Records

Collect:

• Floor plans
• Pictures of your house (particularly if it is damaged or its facilities are old fashioned)
• Inspection reports (where necessary)

In case of major problems in your home such as foundation problem, water damage, or repairs required, make these clear.

Assessment Comparisons

If the homes of your neighbors are assessed lower, you can complain of inequity in assessments. The records that are publicly available can assist you in such comparison.

File the Appeal Properly

After gathering your evidence, then you will be required to submit the form of appeal within the deadline.

Common Requirements:

• Formed appeal application
• A letter of explanation of your case
• Documents (comps, appraisal, photos, etc.) should be supported
• Potential filing charge (depends on the location)
• Always have copies of all that you submit

Prepare for the Hearing

When your appeal is moved to a formal hearing, the preparation is important.

Know What to Expect

You can face a hearing officer, a tax board, or a panel of assessors. Depending on your jurisdiction, the hearing can be face to face, phone, or virtual (Zoom/Teams).

Practice Your Presentation

• Be organized and concise
• Give your evidence in a logical manner
• Keep to the point– no sentiment or lamentation about taxes in general
• Always be courteous and respectful even when you do not agree with the board
• Bring or mail copies of all documents you intend to refer to

Anticipate Questions

They may ask:

• Why do you think your house is overpriced?
• What is the relevance of your comparable sales?
• Was your property recently renovated?

Know What Happens After the Hearing

Possible Outcomes:

• Evaluation is minimized: Your property tax bill will be changed
• Assessment: You may pay original amount
• Partial reduction: You can get a partial reduction; the ruling can be sent to you a couple of weeks following the hearing

What If You Lose the Appeal?

If you are not content with the outcome, there are other alternatives.

Options Include:

• A request of reconsideration
• Resorting to an authority higher than the company, i.e., a state level board or even the courts (depending on state)
• Re-filing in the following year, particularly if market circumstances vary.

Only ensure that the expense and effort are justified by the savings that may be realized.

Final Tips for a Successful Appeal

• Early is better: Do not start at the end of the deadline
• Be precise: Check all the forms and documents
• Keep your head: There is nothing like professionalism
• Be realistic:The more viable your request is backed by good evidence, the better chance of succeeding you have