According to a recent analysis from the National Taxpayers Union, as much as 60 percent of the nation’s real estate is over-assessed. That means if you own a business or residential property, there’s a very high probability you are paying too much in property taxes.
There are several reasons for this state of affairs. When real estate booms, county assessments rapidly increase. However, when real estate values fall, local assessments typically don’t follow suit. Furthermore, local governments have zero incentive to automatically reduce your property taxes, since they directly benefit from those revenues.
Most homeowners and business owners simply assume there’s nothing they can do. While the protest process isn't automatic, many owners are highly successful in reducing their taxes by using these seven proven strategies.
Different states and localities assess properties differently. You cannot challenge your assessment if you don’t know the formula used to create it. In Texas, for example, understanding how local tax rates and the state's 10% homestead cap apply is the first step to fighting your bill.
Your Notice of Appraised Value will list your property value from last year and this year. Make sure these base numbers and classifications are accurate. Simple clerical errors by the county are common and provide an easy path to a reduction.
Assessors rely on mass computer models and sometimes make huge assumptions. For example, they frequently estimate internal square footage based entirely on external aerial observations. If they incorrectly classify a patio as livable space, you are paying taxes on ghost footage.
The area surrounding your home or business drastically impacts its value. If you are near a sewage treatment facility, a noisy airport flight path, or heavy commercial traffic, your property is worth less. These negative external factors (called external obsolescence) should be taken into account. If they weren’t, you have a strong case for a reduction.
Your real estate is also less valuable if there are fundamental problems with the layout, known as functional obsolescence. For example, if you have a large four-bedroom home with only a one-car garage, or an industrial building with severely outdated ceiling heights, it lowers the market value. Make sure the ARB is aware of these issues.
Texas law demands uniform taxation. Find out if neighbors with similar homes or commercial properties are paying substantially less in taxes than you. Unequal appraisal is one of the most common and effective ways to argue for a lower rate.
For a few hundred dollars, you can hire a professional to conduct an independent fee appraisal of your property. If their appraised value is significantly less than the county's assessed value, you will possess objective, hard evidence that the county's mass-appraisal system made a mistake.
The process of lowering your commercial or residential property taxes is complicated. To significantly increase your odds of success, your best bet is to engage an experienced dual-licensed property tax attorney who knows the ropes.
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from industrial and office property to single and multi-family residential.
At a critical time when a property was in lease-up, we were faced with an unreasonable and unjustified assessment.
Brandon’s tenacity and responsiveness resulted in a fair assessment and the largest value change I've seen in my career.
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