We Buy Houses in St. Louis Missouri that just cant be sold. Property taxes tend to be some of the most contentious and politically sensitive of all government levies. As a large source of revenue for Local and State Government they are often kept at low rates for political reasons though in some cases they are abnormally high. They are almost inescapable and the ability of the State or Local Government to seize a property makes them one of the first to be paid. However, an owner does have the ability to significantly reduce their payments and with a little work can enjoy savings.
Property taxes are levied as a percentage of the assessed value of a home. While the assessed of a home is often the purchase price for newer properties, the assessed value changes on a cycle of several years depending on jurisdiction. This system is designed to capitalize on increasing home values in a community to increase government revenues. But as many have learned in the real estate market, what goes up can go down. In the case of an assessed value, a decrease in the sale prices and market prices in a community or area will be reflected in the assessed values. Assessments in most jurisdictions across the country are currently going down as a reflection of the housing market. With the decrease in assessed value, the percentage of property tax will also decrease unless State and Local Government step in to increase the percentage rate. While entirely possible, most elected officials will save this measure as an absolute last resort.
With the downward pressure on property taxes, as areas are re-assessed according to their cycle, anywhere from 3 to 5 years, a tax bill will go down by itself. However, with a new assessment an owner is given the right to challenge his assessment and the dollar value that the state assessors have given a property. State Governments already under extreme fiscal and political pressure will tend not to lower the assessed value any more than they have to. There is an incentive on their part to round up in value or make more optimistic appraisals than might be the case.
The opportunity to challenge an assessment is the opportunity to save real money on a tax bill and should not be taken lightly. It will however take an initial investment. While a homeowner might be able to represent himself before the deciding body, retaining some legal assistance and an expert can increase the likelihood of lower taxes significantly. With so many real estate attorneys and appraisers looking for work, bargains can be found with a little research and a lot of phone calls. An owner should remember that the cost of hiring an attorney and an expert is a small price to pay in comparison to the thousands that can be saved every year.
Assessments can be challenged a number of ways. State assessors might be using outdated or poorly updated information. They might be comparing a property to other properties in a neighborhood that do not necessarily match in terms of the size of the lot or house. A skilled appraiser can find errors and exceptions to just about any property. With so many properties to assess, the possibility of errors and omissions by the State is a chance for real savings.
Though challenging an assessment is usually an option for a property that has been recently assessed, many States and Local Governments list other circumstances and situations in which a property owner can file appeal. This information is usually hidden somewhere on the Department of Assessment and Taxation or other responsible body's website. A quick look can often show that even today there is no such thing as taxation without representation.
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