Question on property taxes.

[winnietucker]

I found out today my property taxes went up 77%. We were expecting an increase but geez. Our neighborhood doesn’t even have sidewalks! I mean we’re close to a couple of parks but that’s really the only amenity we get... Has anyone successfully contested a property tax increase?

 

[bludiva]

in our state there is a whole industry around protesting property taxes. i've done it a few times and usually gotten some rollback, it's definitely worth a try.

 

[winnietucker]

in our state there is a whole industry around protesting property taxes. i've done it a few times and usually gotten some rollback, it's definitely worth a try.

I’m going to try. I have nothing to lose. Unless they raise it again.

 

[bludiva]

I’m going to try. I have nothing to lose. Unless they raise it again.

lord have mercy they can't raise it more, can they? they'll try next year though. good luck!

 

[LilAlex]

I’m going to try. I have nothing to lose. Unless they raise it again.

Check with your neighbors. How realistic was your assessed value before? How accurate is it now? Did you have a local measure that constrained prop tax increases for a period and is no longer in force? Did you have a subsidized rate that expired (sometimes for a decade after building in an urban core, etc.)?

There is a lot of strategizing to these things.

 

[Daisys and Diamonds]

Good lord
I thought a 10% increase was outrageous considering the economic implications of this global pandemic
this must have caused your mom and dad some stress
I hope they and the neighbours are able to push back and get some unsatisfactory compromise from the thieving council

What on earth kind of park is earmarked for their neighbourhod to justify such an unreasonable increase ?
Perhaps solid gold public conveniences?

 

[Missy]

That is a huge increase @winnietucker and I feel your pain.

We have very high property taxes here (that go up every single year by a significant amount) and it does seem like they are increased without rhyme or reason. We also have no sidewalks lol.

We have never contested though because we have heard experiences of those who have contested that were not good. As in they got raised even more. However, we chose to live here (knowing about the high property taxes) and we pay the price. Literally and figuratively. A dear price it is though.

Of course whether or not one can successfully contest their property taxes depends on where one lives and one cannot extrapolate from one area to another. Go in very prepared with info backing up why your property taxes should not be raised (and maybe even decreased) and speak all your neighbors and gather as much as you can evidence wise.

How to Appeal Property Taxes

Appealing your property taxes can help you reduce your property tax bill. Here’s how to appeal your property tax bill in six easy-to-understand steps.

www.houselogic.com

Six Steps to Appeal Your Property Tax Bill

As home values increase nationwide, property taxes are also on the rise.

www.kiplinger.com

Good luck if you contest @winnietucker and I hope you are successful.

 

[Missy]

@winnietucker I just asked my dh and he said you can consult with attorneys if it is worth pursuing. There are attorneys who will evaluate your situation on a contingent basis so you don't pay them unless they take and win your case.

 

[Dee*Jay]

Winnie, where are you located?

In Chicago (Cook County) we play out this kabuki every three years when the county does its triannual reassessment. Everywhere I've lived in the city (and I've moved 19 times in 31 years) the taxes generally go up. I've almost always lived in a codno rather than a single family home and the building would hire an attorney (to Missy's point, there are some that specialize in property tax matters) and they will appeal the assessment, which by default affects the taxes. I don't think you are in a condo, but I raise this point because if you and your neighbors get together and use the same attorney he/she can do it for multiple properties at the same time. I do not recommend you go through the appeal process on your own, and I also don't recommend that every person on your street use a different firm. In my experience, larger numbers of properties presented together tend to get a better overall result.

The way the attorneys get paid here is they get a percentage of what is reduced, so there is an incentive for them to get the bill as low as possible. Not sure if it would work that way where you are, but that "payment system" works for us here as the more you save the more the attorneys get paid.

Of course to add more smoke to the mirrors already involved the county can, in the subsequent year(s), keep the assessment at the lower rate negotiated by the attorney but then up the mil rate, which is the multiplier that the calculation is done on. So it's also worth getting the attorney to explain to you very thoroughly what other things the municipality can do (if you don't know already).

Good luck!

 

[elizat]

It really varies statewide. I would first check your state's requirements for raising taxes and make sure that the proposal doesn't have an error- that can happen. Where I live, they cap how quickly they can raise them.

With that large of an increase, I'd be looking into the appeal process as well and talking to your neighbors to see if they are having similar issues. There is strength in numbers and they are more likely to deal with a group of similarly situated owners with one point person or representative, rather than 25 people.

 

[MRBXXXFVVS1]

How does the property tax value compare to Zillow and Redfin estimates? If it's significantly above, it may be worth investigating. If it's at or below, not worth the trouble, enjoy the appreciation on your property!

 

[Lisa Loves Shiny]

I feel your pain. Ours went up too. Good luck on your appeal.

 

[winnietucker]

lord have mercy they can't raise it more, can they? they'll try next year though. good luck!

I hope not!

Check with your neighbors. How realistic was your assessed value before? How accurate is it now? Did you have a local measure that constrained prop tax increases for a period and is no longer in force? Did you have a subsidized rate that expired (sometimes for a decade after building in an urban core, etc.)?

There is a lot of strategizing to these things.

The tax assessed value is still lower than the actual value. I just checked the website and it’s about $130k - $150k below the Redfin value, which I do believe to be correct based on other properties that have sold.

I totally forgot that I already checked the county website previously. Too busy having sticker shock. The tax assessed value has gone up $171k. Our house was formerly abandoned and then flipped so I’m guessing that’s it.

Good lord
I thought a 10% increase was outrageous considering the economic implications of this global pandemic
this must have caused your mom and dad some stress
I hope they and the neighbours are able to push back and get some unsatisfactory compromise from the thieving council

What on earth kind of park is earmarked for their neighbourhod to justify such an unreasonable increase ?
Perhaps solid gold public conveniences?

I wish I had my parents property taxes! The family house is prob worth about $300k more than my house but they pay about the same amount in property taxes and they get trash included! They even have more sidewalks, better street lighting, and a rec center with a pool across the street. Different states but I like their set up.

Now that I’ve slept and can actually use my brain, I think it’s cause our home was formerly abandoned and flipped. It’s our second year here though and it has sat on the market for a bit before we bought so I guess they’re just slow?

 

[Missy]

I hope not!



The tax assessed value is still lower than the actual value. I just checked the website and it’s about $130k - $150k below the Redfin value, which I do believe to be correct based on other properties that have sold.

I totally forgot that I already checked the county website previously. Too busy having sticker shock. The tax assessed value has gone up $171k. Our house was formerly abandoned and then flipped so I’m guessing that’s it.



I wish I had my parents property taxes! The family house is prob worth about $300k more than my house but they pay about the same amount in property taxes and they get trash included! They even have more sidewalks, better street lighting, and a rec center with a pool across the street. Different states but I like their set up.

Now that I’ve slept and can actually use my brain, I think it’s cause our home was formerly abandoned and flipped. It’s our second year here though and it has sat on the market for a bit before we bought so I guess they’re just slow?

If significant home improvements were made then yes, there you go. I don’t know the lag from time of renovations to property tax increase but a year or even two sounds plausible.

 

[winnietucker]

That is a huge increase @winnietucker and I feel your pain.

We have very high property taxes here (that go up every single year by a significant amount) and it does seem like they are increased without rhyme or reason. We also have no sidewalks lol.

We have never contested though because we have heard experiences of those who have contested that were not good. As in they got raised even more. However, we chose to live here (knowing about the high property taxes) and we pay the price. Literally and figuratively. A dear price it is though.

Of course whether or not one can successfully contest their property taxes depends on where one lives and one cannot extrapolate from one area to another. Go in very prepared with info backing up why your property taxes should not be raised (and maybe even decreased) and speak all your neighbors and gather as much as you can evidence wise.

How to Appeal Property Taxes

Appealing your property taxes can help you reduce your property tax bill. Here’s how to appeal your property tax bill in six easy-to-understand steps.

www.houselogic.com

Six Steps to Appeal Your Property Tax Bill

As home values increase nationwide, property taxes are also on the rise.

www.kiplinger.com

Good luck if you contest @winnietucker and I hope you are successful.

@winnietucker I just asked my dh and he said you can consult with attorneys if it is worth pursuing. There are attorneys who will evaluate your situation on a contingent basis so you don't pay them unless they take and win your case.

Thanks Missy! I’m going to do my research and will most likely try a nice letter more or less saying “please don’t raise our taxes 77%.” Some kind of phase in period would have been nice!

Winnie, where are you located?

In Chicago (Cook County) we play out this kabuki every three years when the county does its triannual reassessment. Everywhere I've lived in the city (and I've moved 19 times in 31 years) the taxes generally go up. I've almost always lived in a codno rather than a single family home and the building would hire an attorney (to Missy's point, there are some that specialize in property tax matters) and they will appeal the assessment, which by default affects the taxes. I don't think you are in a condo, but I raise this point because if you and your neighbors get together and use the same attorney he/she can do it for multiple properties at the same time. I do not recommend you go through the appeal process on your own, and I also don't recommend that every person on your street use a different firm. In my experience, larger numbers of properties presented together tend to get a better overall result.

The way the attorneys get paid here is they get a percentage of what is reduced, so there is an incentive for them to get the bill as low as possible. Not sure if it would work that way where you are, but that "payment system" works for us here as the more you save the more the attorneys get paid.

Of course to add more smoke to the mirrors already involved the county can, in the subsequent year(s), keep the assessment at the lower rate negotiated by the attorney but then up the mil rate, which is the multiplier that the calculation is done on. So it's also worth getting the attorney to explain to you very thoroughly what other things the municipality can do (if you don't know already).

Good luck!

I’m in King County, WA (the one with Seattle). I have to do some research but I think it’s just us and I think it’s the aforementioned house flipping situation.

I know some of our neighbors get a senior rate which is significantly lower than the regular rate (about 40% less). I plan on spending some time this weekend going through the records and looking to see what everyone else is at.

Our area is kinda weird. Across the street from me are nice and expensive lakefront homes. My lot is significantly larger than most of my neighbors... But a good amount smaller than a handful. And then some of the houses belong to an HOA with shared private lake access. So comparing values is going to be interesting...

I might talk to an attorney but it looks like it’d probably be the abandoned house issue I previously mentioned. So that’s probably a one off and accurate increase.

It really varies statewide. I would first check your state's requirements for raising taxes and make sure that the proposal doesn't have an error- that can happen. Where I live, they cap how quickly they can raise them.

With that large of an increase, I'd be looking into the appeal process as well and talking to your neighbors to see if they are having similar issues. There is strength in numbers and they are more likely to deal with a group of similarly situated owners with one point person or representative, rather than 25 people.

I thought there was a cap so yeah I’ll definitely look into that. If it went up 30-40% I’d be annoyed but not shocked.

How does the property tax value compare to Zillow and Redfin estimates? If it's significantly above, it may be worth investigating. If it's at or below, not worth the trouble, enjoy the appreciation on your property!

The tax assessed rate is still a good amount lower. Good ol hot market is driving up the price of houses here so Redfin estimates my home’s value has gone up almost $100k since we bought (almost) a couple years ago. I better start using the library and parks and really getting my tax monies worth.

 

[winnietucker]

If significant home improvements were made then yes, there you go. I don’t know the lag from time of renovations to property tax increase but a year or even two sounds plausible.

What a bummer. I want sidewalks and more streetlights for this price.

 

[Elizabeth35]

I totally forgot that I already checked the county website previously. Too busy having sticker shock. The tax assessed value has gone up $171k. Our house was formerly abandoned and then flipped so I’m guessing that’s it.

If you bought using a RE agent, then I would say shame on them for not giving you a heads up regarding the assessed value. They should have informed you whether the property had any exemptions on the RE taxes (homeowner or senior citizen) and also done their due diligence so you were prepared to pay taxes based on the current value.
They should have informed you that you were assessed on the non-improved value and provided you with a realistic estimate of the new assessed value.

 

[Daisys and Diamonds]

I dont think its fare to be taxed more because someone has invested time and effort into making their house nicer
does one suddenly use more water, sewage, street lighting, roads, footpaths, parks and libraries because there house is now worth more ?
Here in my city the rates are high but we all pay about the same - even those of us well above the flood zone