appraisal/assessment/taxes question

[TaraPA]

During our refinancing we had an appraisal done on our home that was built in 2005. The appraisal came in $200K lower then the appraisal when the house was built. The new appraisal number won't affect the refi, and I don't plan to sell the house, so I'm not concerned with appraised or market value for either of those reasons.

However, we pay over $15K in taxes yearly. I realize the taxes are based on something called millage & assessment - not appraisal - but with this new appraisal so much lower than the original - is there anything I can do to possibly have them re-asses? I don't even know if you can do that - just ask for a review -and who would I even contact?

 

[java]

Taxes are not based on resale value unfortunately.

The first phone call would be to the Tax Assessor in your town. Then you can request a reassessment. However some towns require more than a simple phone call.
Some you'll have to send a letter ect.. But the first call is to the Tax Collector/Assessor. They'll tell you what to do. (it's in your town's municipal building probably)
And yes I hear you on the taxes as we are over $16,000. (I am surprised to hear that your are so high in PA we always heard they were lower there but I guess not)

 

[mickeyboat]

When was the last time your house was assessed? Our tax bill lists the date.

Does your town do reassessments on a regular basis? Our town does them every couple of years. We are allowed to file a grievance if we do not agree with the assessment. A recent appraisal would be evidence that the assessment is incorrect. We just finished this process, and had our lowered because the assessor made a mistake on our assessment.

Market value is one of several factors considered in assessed value.

I am not sure it is even possible to ask for a reassessment outside of their cycle, unless it is in connection with a building permit - in which case it would increase your assessment / taxes.

What is the reason for the drop in property value - the housing market? Keep in mind that if everyone contests their assessments, the town will have to raise the tax rate to maintain the same revenues, and your taxes will remain the same. If only a few people ask for a reassessment, you will probably have the benefit of lower taxes until the next town-wide reassessment.

Contact your town's listing office for the procedure.

 

[barkley]

you need to call your tax assessor's office to find out how they determine the taxable value. it's done differently from place to place. then find out what the rules and the process is for requesting a re-appraisal and if you feel like you might qualify go for it.

keep in mind that allot of people are pursuing these so you might be told there's a substantial wait but don't let that be offputting. in some areas the rule is that no matter how long it takes for the assessors office to do their process, any lowered bill is retroactive to the day you made your formal request. my brother lives in an area that has a rule like this-so while there up to an 18 month wait for the process to be completed he is looking at (based on his neighbors who have had it completed) a substantial tax reduction going back a year and a half. based on his neighbor's reductions in payments he figures he can either get a cash out of a tidy sum or end up with a credit on the books that will cover about his entire tax bill for the following year

 

[TaraPA]

Thanks java & mickeyboat for your replies!

I have no idea when it was last assessed - I would assume when it was built in 2005. I will ask DH to check the tax bills, he is out of town right now. I know what the assessed value is from the county tax website, but I don't undestand how assessment works. The assed value is much lower than even the appraisal, but looking at other homes in the area everyone's is lower - which is good, right? The assed value of local homes looks to be about half of what they are selling for.

I would assume the lower appraisal is because of market value - it's terrible around here right now. The appraisal stated the house was in excellent condition, so I can't imagine the lower value was based on that.

I think I will go on the township's website & see if I can find out any info there.

 

[TaraPA]

good info barkley - thanks! And congrats to your brother!

 

[megthewonderful]

We just had our house reassessed. When we bought it earlier this year, the appraisal came in at almost $80,000 less than what the town had it assessed at. We filed a mountain of paperwork and after 5 months, they almost met us half way, by lowering the assessment by $35,000. We figured it was better than nothing and we are now looking forward to the town sending us a check for taxes we already paid. They tell us the check was mailed this week, so hopefully it will be in the mail today! Each town's procedure is different, but if you have the time to do it, it will most likely pay off and it is retroactive to when you filed the tax abatement. Good luck!

 

[PamOKW]

Usually the assessment is a percentage of the actual market value. In our town the assessment is 70% of the market value. Taxes are determined by multiplying the assessment by the mill rate. You can try to get the assessment lowered but I think, in general, you have to wait for them to revalue the entire town and then you can plead your case if you disagree with the number. Of course, even if they lower the town's rates, they can increase the mill rate! They'll get their pound of flesh one way or another.

 

[ms.yt]

I have nothing to add to your question, but reading posts like this it just amazes me how different things are in different parts of the country. I can't imagine how much your house must have appraised for to have $200K leeway in the appraised value! I don't know how big your house is or anything, but I'm assuming it's very nice. We are house hunting now in the small Northeast Arkansas town that I work in, and $200K would buy most of the nicest houses in town. And for the tax issue, I can't imagine having to pay $15K in taxes. I have a small (around 1,400/1,500 sq ft) house that I rent out. It's less than 10 years old, and is a very cute little house. I think the taxes for that house are around $400 per year. I know we make less money in Arkansas, but I can't imagine that it all evens out with real estate being so high in other parts of the country! Again, I just wanted to comment on regional differences in the cost of things.

 

[descovy]

I have nothing to add to your question, but reading posts like this it just amazes me how different things are in different parts of the country. I can't imagine how much your house must have appraised for to have $200K leeway in the appraised value! I don't know how big your house is or anything, but I'm assuming it's very nice. We are house hunting now in the small Northeast Arkansas town that I work in, and $200K would buy most of the nicest houses in town. And for the tax issue, I can't imagine having to pay $15K in taxes. I have a small (around 1,400/1,500 sq ft) house that I rent out. It's less than 10 years old, and is a very cute little house. I think the taxes for that house are around $400 per year. I know we make less money in Arkansas, but I can't imagine that it all evens out with real estate being so high in other parts of the country! Again, I just wanted to comment on regional differences in the cost of things.

Surely you know that different states have different ways of taxing residents. Some have sales tax, some have no sales tax. Some sales tax foods, or charge bottle deposits on drinks, others do not. Some have state income tax, some have no state income tax.

Either way we all pay.

In Texas (where I live now) property taxes are 2-4% (average being 3%) of your appraised value. The biggest chunk on that goes to the school district. My school district is 2% alone! So on a $100k house in my school district, taxes are $3500/year! But we don't pay state income tax in Texas... making that apparently high property tax bill awash when you compare it to a state where maybe you do pay $400/yr in property tax but pay income tax.

I lived in Montana (as a renter) in the '90's so I can't speak to their property taxes, but we had NO sales tax (making change was a breeze!) but we had state income tax and ridiculously high vehicle tag fees. $300/year just to license the car!

Meh, you aren't getting away with much by only paying $400/yr in "property taxes" Last time I visited Arkansas, I saw public schools, public roads, police, firefighters, hospitals, parks, etc... You are just paying for it out of some other taxing authority.