How to Lower Your Property Taxes?
How to lower your property taxes? Property taxes are decided collectively by school boards, town boards, legislators, and councils. The tax rate is set by collating the amount of funds an area needs. This is divide that by the total taxable assessed value of the area. The tax a person pays is computed by multiplying the tax rate by the assessed value of your property and then deducting any applicable exceptions. Property taxes are at an all-time high. Studies indicate that they have increased more than 35% in five years.
Property is assessed by determining property costs in any given area. Property are valued by studying. The actual sale price of properties in the area, costs to be incurred to replace the property, potential realization of property if it is rented, sold, or gifted, and the historical value of a property.
There are a few ways in which you could save on taxes:
1.Verify if the state you reside in is offering any rebates.
For example, a money back rebate, energy rebate, capping of taxes, or homeowners’ rebate where under certain conditions you may be eligible to claim a rebate.
2. Make sure that the property is assessed right.
This will ensure that you do not have to pay excess taxes. Assert your right to check your assessment report ensure that there are no miscalculations, mistakes, or assumptions. If in any doubt, do put in an appeal. According to statistics almost 50% of the cases win some relief.
3. Verify all exemptions allowed according to the law.
4. Purchase a property jointly with a partner or family member.
This way both owners become eligible for tax rebates.
5. See if your assessment is in according to other properties in your neighborhood.
Check with the assessment office or with your neighbors themselves. It helps to know applicable laws. Use the help of a real estate professional to put together a file of properties like yours that have a lower assessment. Or use the banks appraisal to support your case. Be sure that the case you gather is watertight.
6. Consult a property consultant to help you save taxes.
Some charge a flat fee while others just a percentage of what you save. A professional will check how assessment is done and if there are any loopholes you can use.
7. There is strength in numbers.
Get together with other owners who are also checking or fighting assessments.
8. Ask you home loan provider whether you are eligible for refund of property taxes paid.
Some agreements have a provision for this. Many mortgages have automatic escrow of taxes.
9. Find out before you buy a home what the property taxes are in the area and what have been the increases in tax rates.
10. Make sure to read through assessment and tax manuals published by your local authorities.
These will give a clear idea of what are the parameters used and what you must do to reduce or pay the correct property taxes.
To be money smart you need to get the help of an efficient and dedicated accountant. Plan your tax liabilities well, known thoroughly all aspects of Property Tax. When you are prudent, you can be benefiting by using ways and means to cut your tax burden and liabilities.