Think your property tax assessment is too high? How the appeal process works

In much of the country, property tax bills and assessment notices arrive in the fall. Most people pay them without a second look. But assessments are made by people working through thousands of properties, and mistakes happen. If your value is too high, you can usually challenge it, and the process is often simpler than people expect.

Understand what you can and cannot appeal

Your property tax bill comes from two numbers. One is the assessed value of your property, set by the county or township assessor. The other is the tax rate, set by the local governments that rely on property taxes, such as the county, the school district and the fire district.

An appeal can only challenge the first number, your assessment. If you think the tax rate is too high, the place to say so is at budget hearings for the school board, the county and the other taxing bodies, which are usually held well before bills go out.

Check your property record first

Before you compare your value with anything else, look up your property record card. Most counties post it online, and the assessor’s office will provide a copy if you ask.

Check the basics. The square footage, the number of bedrooms and bathrooms, whether a basement is finished, the size of the lot, any outbuildings, and the condition rating. A garage that was torn down years ago, a basement listed as finished when it is not, or a lot that is recorded as larger than it is can all inflate a value. Errors like these are often fixed with a phone call and no formal appeal at all.

Compare with similar sales

Assessors generally try to value property at market value, or a set percentage of it. The strongest evidence that your value is too high is recent sales of similar properties nearby that sold for less.

Look for homes that are close in size, age, condition and location and that sold within the past year or so. A real estate agent can often pull a list for you. Many county websites also let you search recent sales and see what nearby homes are assessed at, which can show whether yours is out of line.

If you bought your home recently, the purchase price is good evidence too, as long as the sale was a normal one between unrelated parties.

File on time

Deadlines are strict and vary a great deal by state and county. In many places the window opens when assessment notices are mailed and closes 30 to 60 days later. The deadline is usually printed on the notice. Miss it, and you may have to wait a full year.

Most systems have more than one step. It often starts with an informal review with the assessor’s office, then moves to a county board, often called a board of review or board of equalization, and in some states on to a state-level tribunal. Many appeals are settled at the first step.

Ask about exemptions

While you are looking, check whether you are getting every exemption you qualify for. Many states offer homestead exemptions for primary residences, and many have reductions or freezes for seniors, veterans, people with disabilities or land in agricultural use. These usually require an application, and they are not always applied automatically.

Keep it simple

You do not need a lawyer for most residential appeals. Bring clear evidence, such as photos of problems with the house, the record card with errors marked, and a short list of comparable sales. Be polite and specific. Assessors and boards hear a lot of complaints about taxes in general. What gets results is evidence that the value of this particular property is wrong.