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Friday, July 18, 2014

Should You Appeal Your Property Taxes? See tips to appeal taxes in this article.

It's property tax bill season!  As real estate prices continue to rise, so are property taxes. Maybe you think your property taxes rose too much.  My friends at the real estate law firm of McMannamy, McLeod and Heller gave me the following article about appealing your taxes (reprinted with permission).

There are two main grounds for appealing your property assessment: fair market value and uniformity. Fair market value is what it sounds like. You should review comparable properties that sold in and around your neighborhood to determine the price at which a willing buyer would purchase your property. You have a legal right for the 100% assessed value of your property — the relevant value for purposes of your appeal — to equal its fair market value.

Please note that the tax assessor only considers sales that occurred during the 2013 calendar year (January 1, 2013 through December 31, 2013) to determine the fair market value of your property for 2014 tax purposes. Sales before January 1, 2013 and after December 31, 2013 will not be considered. One place to find 2013 sales is Zillow.com. Search the yellow “recently sold” properties from 1/1/13 to 12/31/13.

The other basis for an appeal is uniformity. The calculation used by the tax assessor is a bit more complicated than this, but as a shorthand, if the properties in your neighborhood are of a similar type and are on similar tracts of land (1/4 acre, 1/3 acre, 1/2 acre, etc.), then the assessed value per square foot for your home should be the same as the others in your neighborhood.

To determine if you have a uniformity appeal, use the tax assessor’s website in your county to search the other houses on your street or in your neighborhood: The tax assessor’s record for each house will show a 100% assessed value and total square footage. For each house, divide the 100% assessed value by the total square footage. Then, average the “assessed value per square foot” results for your entire street or neighborhood. If your house is above the average, multiply the average by your house’s square footage and request that amount as your 100% assessed value.

Even if you are only appealing fair market value or uniformity, be sure to check both “value” and “uniformity” in case you ultimately would like to argue both of these grounds before the Board of Equalization. The type of appeal you are filing is a “real” property appeal. Although there is an arbitration process you can use, there are potential costs to it, so I highly recommend that you check the box for a “BOE” appeal which will send your appeal to the Board of Equalization.

Below are the mailing addresses for the DeKalb or Fulton office to which you should send your appeal. I also have included their telephone numbers in case you have any questions:
DeKalb County Property Appraisal Department
120 West Trinity Place, Room 208
Decatur, GA, 30030
(404) 371-0841

Fulton County Board of Tax Assessors
141 Pryor Street, Suite 2052
Atlanta, GA 30303
(404) 612-6440


The tax assessor will review your appeal and send you a response letter letting you know if they have decided to grant a reduction in value. If they don’t grant a reduction, you have the right to go before the Board of Equalization. If they grant a reduction, you nevertheless can choose to go before the Board of Equalization.

You may want to continue to the Board of Equalization even if you are satisfied with the reduced value from the tax assessor. A reduction given by the tax assessor lasts for the current tax year only. A reduction awarded by the Board of Equalization last for three years, the current tax year plus two more. You can start your Board of Equalization hearing by noting the lower value that the tax assessor gave you. Sometimes the tax assessor will agree to that value right there on the spot and it will be formalized in the decision of the Board of Equalization.

Here are four additional tips for your Board of Equalization hearing:

1. You have the right to review the tax assessor’s comparable properties and other documents before entering the hearing room. You also can request the documents in writing prior to your hearing. Avail yourself of this opportunity.
2. Each side will present their case to the Board of Equalization. Often, the tax assessor’s representative will sit silently and let you go first. Request that the tax assessor present their case first, so that you can respond to it.
3. The Board of Equalization should be comprised of three citizen members. Sometimes they are short-handed and might request to proceed with two members. Insist on three.

4. Bring five copies of your appeal documents with you to the hearing, one copy for each member of the Board of Equalization, one for you and one for the tax assessor’s representative.

If I can help you with the process or provide info to help with your appeal, please email me at jacksonbasshomes@gmail.com.   If you are thinking of selling in the coming year, a lower tax bill can help your bottom line as it is a selling point to potential buyers. 

2 comments:

  1. even suggesting that we write a letter to the sellers to explain why we thought they should choose us. It was an unconventional approach but it worked and we thank Craig for that every day!
    Burr Ridge condos

    ReplyDelete
  2. My real estate agent is a combination of being a nice, down to earth guy while being completely professional, and competent in every way that one would want from their property manager.

    ReplyDelete