Property taxes are real estate taxes calculated by the standing governments and paid by the homeowners. The assessor calculates them by the property’s value in question, which means if the property’s price is high, so will be the property tax, and vice versa.
The revenues generated from the property taxes are utilized to fund local projects and services like the fire department, local public recreation, education and law enforcement. These projects are designed to benefit all owners in the area and are maintained from the different taxes applicable to the people living there. However, homeowners can follow a few tricks to save on their property tax bills effectively. Here’s a quick look at the crucial aspects:
The Plight Of Local Homeowners
Property taxes are utilized in the welfare of the living population, but still, it becomes burdensome for the homeowners. Most of them think that they are paying more property tax than they should. Although the tax is calculated and fixed by knowledgeable accountants, it is not uncommon to find the inflated value of a property. So, it will be better to have a reliable second opinion from a proficient property accountant Perth.
Otherwise, the homeowners can get rebates if they fulfil certain conditions. However, the homeowners have to apply to the authority to get those rebates – they are not automatically applied. Sometimes, senior citizens get some discount on their property taxes. The homeowners will have to keep track of the information related to their property and avail of the advantages.
Saving On A Property Tax Bill
The best way to get an appropriate property tax bill is to understand how it is calculated. Calculation of the property tax bill can be puzzling, as the account can differ in two areas for a similar property.
Property tax considers two essential factors – the current tax rate and the property’s current value in the market. The authorities set the tax rate depending upon the state law – sometimes it is changed annually, or it is raised at a different time rate, for example, once in five years. Municipals set their tax – also known as the millage or mill rate – based on the requirement to afford the essential services.
A government-appointed assessor will estimate the property’s market value – including both land and structure – and send you an assessment. The assessor may visit the property or determine the tax value with the help of software and updated tax rolls. The local tax collector’s office determines the tax amount by multiplying the assessed value with the tax rates. Some of the other ways to lessen your property tax burden can be listed as:
Don’t Add New Structures
Any permanent structure – a pool, a deck, and a large shed –are presumed to increase the value of your property, and as a result, the tax bill. Therefore, the homeowner should find out the increase in the property’s value before starting construction. You can get a ballpark estimate from the local building and tax department.
Asking To See The Property Tax Card
Homeowners are entitled to see their property tax card at the local assessor’s office or in the town hall, which has the information the office has collected over time – like the size of the lot, dimensions of the rooms, and the fixtures located within the home. It can also have data about any unique structure and improvements made to the existing system. Review this card thoroughly for any mistakes and give information to the assessor’s office. It may sound far-fetched, but if any error is found – the assessor has to correct them and conduct a re-evaluation.Â
Read More: Getting the Right Advice on Real Estate Transactions
Researching The Adjacent Properties
You can also find the tax details of your neighbours’ properties in the town hall. It is worthwhile to research and know about the assessed value of comparable properties, as you will find that often your property is valued more than an adjacent one even if the characteristics are similar. Unless any particular property distinguishes your property from the others, the assessor can make mistakes. Bringing these to their attention will help in reducing the taxes.
Accompany The Assessor
During the evaluation process, many people leave the assessor on their own in their homes. It is better to guide the assessor on their inspection and point out the different applicable information about the property. Otherwise, it can be a mistake and lead to an inflated assessment of the home. In some cases, the assessor will look at only the good points – like the marble-topped kitchen, the new fireplace, or electronic appliances.
They will not see that the marble top is starting to crack, the machines are outdated, or the ceiling has started to peel. To ensure that the assessor considers the good points and the drawbacks – accompany them when they are inspecting your property. This step will provide a fair evaluation of your property.
Keep Track Of Exemptions
Certain city councils or municipalities allow for concession in the tax burden if you qualify for specific categories. However, you have to apply and notify the property tax authority to get the privileges – they are not automatically applied to the tax bill. Most government authorities provide tax rebates if you are:
- Veterans
- Senior citizens
- People with disabilities.
- Owner of agricultural properties.
- Among the regulations qualifying you for homestead exemptions.
Although, in some places, government and religious buildings also qualify for tax exemptions.
Allowing The Assessor Entrance To Your Property
It is not necessary to allow the assessor to let into your property. However, it can enable them to assign the highest possible value for that type of property –fair or not – as this is also the standing policy for many towns. In non-admission, the assessor can assume that you have made improvements to the property – like added costly fixtures or made expensive renovations. You will have to go to the town authority to dispute the tax rate, and they will need to see your property for reconsideration.
So, the best thing is to allow the assessor into your property. You should be Okay if you have permits for all the improvements you’ve made.
Hiring an assessor
It is best to have the opinion of a proficient assessor and the calculation of a certified accountant if you are thinking of contesting the tax bill. You can start with an informal meeting, and if that doesn’t work – appeal for a formal review. You may have to pay close attention to the deadlines of challenging a new assessment and its application. So, if you are searching with phrases like ‘accountant near me’, then the top firms will be there to help you.