Everyone has to pay taxes, but no one should pay more than their share of the tax.
Many homeowners can benefit from property tax appeals. National Taxpayers United Foundation Reports suggest that between 30 and 60 percent of taxable real estate in the U.S. is overvalued, meaning roughly the same number of homeowners are overpaying their property taxes.
To make matters worse, only 5% of taxpayers contest their assessment. Stern TeamFiling a property tax challenge can be quicker, easier, and more straightforward than you might think.
How real estate tax works
Whether or not you plan to contest your property taxes, homeowners should have a basic understanding of property taxes. Property taxes are fees that property owners pay to local governments based on the assessed value of their property. Tax rates vary by county and taxing district. Recent Posts According to Rocket Mortgage, Utah has the 12th lowest property taxes in the country, with residents paying an average of $1,367. New Jersey holds the dubious position of having the highest, with a rate of 2.49% and residents paying more than $5,000 a year.
Tax rates vary from county to county in Utah, but are relatively low compared to other states, primarily because the state offers large exemptions. Utah Constitution.) allows 45% of your property to be tax-exempt, according to Utah.gov. (You must live in the property at least half the year to receive the exemption.) This means you only pay tax on 55% of the property’s market value. So if your home is assessed at $100,000, your property taxes are only calculated based on $55,000. Thanks, Utah!
Reasons you might overpay
The first step to paying the right amount of property taxes is to claim any exemptions you qualify for. If you haven’t claimed an exemption you qualify for, you’re definitely overpaying. There are various property tax exemptions available for seniors, veterans, and people with disabilities. The Utah Property Tax Division provides more information on who qualifies and how to claim an exemption. here.
The second reason you might overpay is if your property is assessed too high. Each taxing district completes its appraisals by January 1 of each year. Homes are assessed at fair market value — the amount a buyer and seller would agree to on the open market. Sometimes this amount is too low or too high. In even rarer cases, a property may be assessed twice, causing owners to pay twice as much if they don’t realize the error. Make sure you read the notice carefully.
Any major changes to a property will affect the assessed value. Adding or removing a pool, cutting down mature trees, or even damage caused by natural disasters can all cause a home’s assessed value to be inaccurate.
Typically, property taxes would not rise if home prices were rising at a similarly steady pace. Unfortunately, that wasn’t the case during Utah’s housing bubble. Katie McKellar writes: Deseret News Regarding Utahns being surprised by their tax bills, Tooele County Assessor Jake Parkinson said, “It’s unprecedented for a tax increase to occur because of increased property values, and not because of a proposed tax increase.”
How to file an appeal
Homeowners who want to contest their property taxes should remember that it doesn’t mean a big fight with the local tax department. It’s as simple as filing an application to contest the assessed value. For homeowners who have been overassessed, contesting the amount could save them hundreds of dollars.
The most important thing is to meet the deadline for filing your appeal. The deadline varies by taxing body, but it’s usually in August or September, or a certain number of days after you receive your tax assessment. Contact your local agency for the tax calendar. Once you know the deadline, it’s just a matter of filing your appeal according to your county’s rules.
For guidance and tips on the property tax appeal process, check out these free resources from the Stern Team. click here Schedule a phone consultation with a Stern Team agent to learn how to dispute your taxes. Stern Team will dispute your taxes for free, with no obligation.
