Lowering your Property Taxes

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

Many homeowners feel they are paying more than their fair share of property taxes. Home values have pummeled by more than 30 percent, from their peaks, since the housing crisis started. Many believe their homes are over-assessed. According to the National Taxpayers Union,as many as 30% to 40% of residential homes and commercial properties are over-assessed. Only a small percentage (roughly 2% to 3%) of homeowners attempt to go through an appeals process. Research suggests homeowners are a little leery of an appeal based on the perceived complexity of filing for one. In actuality, homeowners who file an appeal enjoy a 20% to 40% success rate as it is a pretty straightforward process. Many people do not know the odds could be in their favor. A little investigation and patience can go a long way, and save you some money in the long run.

In preparation for your case, the first thing one should do is to look for errors in your assessment. Call your local assessor’s office to find out how your district levies taxes, on 100% of the market value or, in addition to some fractions of it. Although fractional assessments are less common, plenty of districts still use them for reference. Each jurisdiction has their own rules and guidelines pertaining to assessment appeals. Make sure you know all of the legalities involved before pursuing an appeal. When you go to the assessor’s office, ask to see the property card for your home. It will list all the details pertaining to your initial assessment. If you choose to file a case you are going to need hard evidence. Remember to check off on all itemized mistakes. This could include square footage or the number of bathrooms. If a written error has occurred, the assessor may be able to fix it immediately. If it is a computer error, the process to correct it may take a bit longer. Also, make sure to ask for the property cards of your immediate neighbors (this is public record) who own similar homes. Crosscheck your assessment with theirs. Most times if there is a 10% or more margin of error you can prepare a good case based on uniformity. It is the assessor’s responsibility to maintain equity amongst owners in the same neighborhoods.

If you need more information and forms to organize your appeal, go to the American Homeowner’s Association, for assistance. This website is full of helpful tips and information.