Property Taxes Payments And Property Tax Reduction Guidelines

Many people pay there property taxes in the tax year and claim there taxes on their income taxes for that year. For example, the year 2007, you receive your property tax bill in December and pay the tax immediately. You can then claim the property taxes on your income tax. If your wait until January of 2008, you will have to claim the property taxes for 2008. There are different reasons for paying your taxes right away and there are reasons for waiting until the following year. Deciding when to pay your taxes may be determine by thinking about your current tax liability.

People who are low income and can apply for a homestead credit will need a copy of the tax bill to send to the state agency that handles the homestead credit. If two people are on the tax bill and only one is claiming the homestead credit, that person does need to meet the requirements for total income. There are different guidelines to follow for this type of filing. You can submit a homestead credit request even if you did not pay the property tax for the tax year you are claiming. This stated on the homestead form itself.

Are you entitled to a property tax reduction?

A property tax reduction is not as easy to obtain, as one would think. If a mortgage appraiser over exaggerated the fair market value price of your home so you could get the refinancing. Could this affect your assessed value? It might not play a big part in the assessed value, but it is considered when rendering the final assessment.

A property tax reduction also comes from applying for a different status on your property tax bill. If you bought a two family home and converted it into a single-family home, you are entitled to a reduction in property taxes, only if you did not increase the value of the property. Single family and two family properties have different tax rates. You can have this adjusted by visiting the taxing authority and filling out the paperwork to change the classification of the property. Once this is accept by the committee, your property will be reassessed and a different tax rate will be used to determine your new property tax liability.

For low income homeowners owners, the county treasure’s office or an online source can supply you with a hardship application. You need to have proof of ownership, income documents, identification and proof of residency. You can also receive information on challenging your property tax increase, obtaining more time to pay, how to obtain relief from property taxes in the future and find information from company’s that offer low income financial assistance.

To summarize deferrals and reductions in property taxes, one would say that low income homeowners can receive a tax reduction, but you do have to meet with special circumstances. Veterans can receive a reduction of taxes, but they may only receive a percentage that meets with the guidelines of the qualifications. Not everyone is going to receive a deferral or a reduction just because he or she falls into one of these categories. It is all up to the taxing committees whether you are accepted or denied. All you can do is apply and wait for a decision by the community committee.

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Contesting Taxes In Texas

What do you do if you disagree with the county appraisal district’s (CAD’s) appraisal of your property? The following information may help you.

If you disagree with the CAD’s appraisal of your property, you must file a written protest each year to the county’s appraisal review board (ARB). The ARB is an independent body that settles disputes between property owners and the appraisal district. You must file the protest before June 1 or no later than 30 days after the appraisal district sends you a notice of your appraised value.

When you present your protest to the ARB, you may appear in person, send someone to present the protest for you, or send a sworn affidavit (notarized statement) containing the evidence to support your protest. You should submit the affidavit to the ARB before the hearing begins. It is very important that ARB receives your affidavit before the date of your hearing or you may not get to present your evidence. Submitting your evidence by affidavit, although perfectly legal, may not be as effective as actually being present at the protest hearing.

For your ARB hearing, you may want to bring photographs of your property. If there are defects in the property, bring a notarized statement from a repair company or independent appraiser. You should also gather sales of similar properties in your area. Sales that occurred closest to January 1 are the best to use. Ask the CAD for sales it used to appraise your property. Obtaining a notarized statement from a realtor giving an opinion of your property’s value is also good evidence to present to the ARB.

Believe it or not, the law says that for most protests the CAD has the burden of proving the property is correctly appraised. They must do so by a preponderance of the evidence presented at the ARB hearing. The CAD also has the burden of showing the property is appraised equally with similar properties. If the CAD fails to meet that standard, the law says that the ARB should make a determination in the property owner’s favor.

In 2008, the law changes and in certain protests places an even higher burden on the CAD to prove the property is correctly appraised. Beginning in 2008, in a protest on a property with a market or appraised value of $1 million or less, the appraisal district has the burden of establishing the value of the property by clear and convincing evidence �” as opposed to the weight or preponderance of the evidence �” presented at the hearing when the property owner delivers an appraisal to the CAD at least 14 days before the hearing and the independent appraisal was performed within 180 days of the hearing date.

You have the right to appeal ARB’s decision to district court or in some cases seek binding arbitration. You have 45 days after receiving the board’s written order to file a petition for review with the court or seek resolution through binding arbitration. Property owners should talk with an attorney before deciding to file suit against the CAD.

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Will Your Property Taxes Go Down Now That Your House Is Worth Less?

It is often noted that over the last ten years the price of an average home in the United States in real term” has more than doubled.

What this means is that you were able to sell your home, in essence to cash in your chips as it you were at a gambling casino, and buy a representative basket of other non real estate goods be it tomatoes, movie admission passes, corned beef, cars, garden plants you would be able to buy double the amount that you would of just 10 years ago.

I am sure you noticed that along with your new found wealth as a result of your real estate investment that your housing and realty taxes increased as well. Not only are you rich in terms of net valuations but you also having higher taxes on your property.

Property taxes are assessed by cities and municipalities on the assessed valuation” of the home or property. In the end it your annual property tax bill, that comes in that nice official envelope from realty tax central all comes down to the valuation of the property on hand. It is often said that you can count on two things in life death and taxes. Property tax is an ad valorem” tax that an owner of real estate or other property pays on the value of the property being taxed. Sure you are rich in terms of the valuation of your house but simply put the more your house is worth, the more realty tax you will pay and be paying every year.

Unfortunately what has happened is that most Americans are not diversified in terms and their assets and investments. With the stock market crashes and low interest rates paid it seemed that the only place that they could make money’ was in their house. Low interest rates allowed many to purchase houses, condos and even vacation cottages and condos that they could never afford otherwise. Low interest rates meant low mortgages.

Many could now afford substantial properties that they never could have afforded in any way before. The circle went round and round- low interest rates meant others could afford those properties as well. Housing prices went as a result of the increased demand. The home buyers now congratulated themselves on the wise choice of their investment in their home. Real estate it turned out was a million times better an investment than anything else. A million times better than the risky stock market, Interest rates on certificate of deposit would have paid you virtually nothing. On top of that a feeding frenzy arose in the real estate market as people who were not buyers of real estate or who had planned to be in the future rushed into the market in a panic lest they be locked out forever” of their dream of buying a house , condo etc.

The fallacy in this logic is that these people are house rich and cash poor. They had not diversified their investments. At the time it seemed like a wise idea in terms of rates of return and other options. After all they only made so much land” and real estate always goes up”.

Back to the topic of taxes and realty taxes. The housing bubble has burst”. Housing prices seem to be in a correction on the way down.

You may well wonder. If the value of my house has come down so should my realty and house taxes. Don’t count on it. Actually it is highly if ever doubtful. Your city or municipality needs that revenue stream as much as you do or perhaps even more. You at least can cut back”. You can eat hamburger instead of steak, you can choose not to purchase that new car you wanted. However your tax money has been incorporated in budgets and planning for a long time coming. It’s spoken for. On top of that you can hardly expect that civil servants will take a pay cut or that the whole civil service will become amazingly productive at least in the near future.

What can you do? It all comes down to valuations and homework. Have your house value assessed. You can do an initial assessment by comparing your home to other homes in your area that were recently professionally evaluated. You can check on the internet and with local real estate agents what similar housing and real estate in your area has sold for. Not so much the asking price but rather the actual sales price.

Now that you have a good general idea from a couple of sources it may be wise to spring and hire a professional property evaluation or property inspection service. You can find these services in your local yellow pages or with a search on the internet. If you are stuck and cannot find one- ask a local real estate agent or company.

Next compare your taxes to other similar priced properties. First in your area and later outside your direct area, but in your municipality.

Many cities now actually list home valuations and taxes on the internet freely to the general public. If not real estate listings may give you the data.

In the end it all comes down to valuation of your property. You can file an appeal of your realty taxes. Your case can rest on two points of discussion. First that your home taxes are out of line and too high, compared to other similar properties. Second you can argue that the valuation of your house upon which these property taxes are based is wrong. According to the cities own calculations you should be paying much less tax.

In the end as they say It’s Your Money” And Your House”. Ensure you do your homework of property valuations and tax rates in a thorough, detailed and systematic manner.

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