Property taxes are "ad valorem" taxes, which means they are determined based on the value of the land and any improvements, such as homes or other buildings. Your tax assessor determines the estimated value of your home and you are taxed a certain percentage of this value, which varies by location. If you believe your assessor has improperly valued your property or is otherwise being unfair, you have the right to appeal your assessment. The specific procedure for how to appeal also varies by state, but there are some commonalities.
Appealing Your Tax Assessor's Decision
Typically, if you intend to appeal, you must submit a formal written request within a specified period of time. This time limit may be a certain number of days after you receive a new assessed value. You may also appeal by a specific date each year even if you have not had a new assessment if you believe your property values have fallen.
After your request for appeal has been submitted, the next step is usually a hearing in front of an administrative agency such as the tax review board, the county review board or the county commissioner. Hearings usually take place within a few weeks to a few months after the request has been submitted and are open to the public. The burden is on the person appealing to prove that the assessor overvalued the home or valued it improperly. You can meet this burden by presenting proof that other similar homes ("comparables") have a lower assessed value and/or by providing expert testimony from a certified or licensed appraiser. It is best to have a lawyer representing you for this meeting, as the tax assessment office will generally have legal representation.
It is important to be aware that appeals to lower your assessed value must be based on factual evidence, not just a feeling that the assessment is unfair. It is also important to note that your estimated value could be raised as well as lowered depending on the findings on appeal.
The Next Step in the Appeals Process
Most states have been two and four levels of appeal, so you may pursue a further appeal if you are not successful at the original hearing. In some cases, there will be an administrative agency that hears appeals. In other cases, you will need to take your case to the state or to court. At this stage, it is imperative you have an experienced attorney who handles property tax appeals if you do not already have legal representation.