Health & Fitness
8 Tips For Lowering Your Property Taxes
Jean Marie Veegh with East Shore Properties is your local leading source for Rhode Island and Newport County Real Estate.
One of the "joys" of home-ownership is paying property taxes. While we all want our roads paved and our kids educated, no one wants to pay more in taxes than necessary, especially if your neighbor is paying less for a house that's quite similar or even better. If you’re a Rhode Island resident facing eye-popping property taxes, you may be surprised to learn that the amount you have to pay may be more under your control than you might think.
Municipalities (or whichever government body sends out your annual economic albatross) all have procedures for protesting property taxes. If you make a strong case - you can get your taxes lowered, not just for a year, but for years to come. Read below for some tips to get you started.
1. Know How Your Town’s Taxes Are Calculated
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Visit your town or check out their website and read the rules. These will explain how your taxes are computed and how you can go about disputing your tax bill, if need be. Each locality’s property tax assessor has a procedure for filing a request to reduce or to request a revaluation.
2. Check For Mistakes
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Examine the assessor's entire description of your property. Note any discrepancies and document them with blueprints, surveys, photos or other inspection reports.
3. Know Thy Market
Consult with a local real estate agent and ask for a market analysis of other homes in the neighborhood that are in the same tax category as yours. Ask for sold homes in the past 6 months – listings or properties under contract don’t count. Once you find comparable home values, you'll want to take snapshots of the exterior of the "comps," and create a report for the tax assessor to review.
4. Consider A Professional Appraisal
Usually, property taxes are based on area property values. So, if you bought your home five or more years ago, it’s quite possible that the value of your property has gone down. If this is the case and you want dispute your bill, have your property re-appraised by a qualified appraiser. Make sure the appraiser meets the standards of your tax-assessing agency. Otherwise, you’ll be wasting your money because the agency may not accept the appraisal.
5. Review Your Contract
A study out this week by the Federal reserve showed home sales got off to a decent start in 2014, increasing in all New England states with the exception of Rhode Island. If your town claims that your home is worth more than the price at which you bought it, you probably have a strong argument that it has been overvalued. If you bought your home in the relatively recent past and have not yet made any improvements to it, it may have actually lost some value during the intervening time period.
6. Does Your Home Condition Measure Up?
Not all homes are created equal. If your home was assessed at a similar value to other homes in your neighborhood despite obvious shortcomings, it could be overvalued. Start by comparing your home's construction materials and general state of repair to those of neighboring houses. Document where your home needs repair compared to other homes in better shape in your neighborhood.
7. Are You Exempt?
Homeowners 65 and older who earn $30,000 or less can get a state tax credit of up to $300 under the statewide property-tax relief program. Cities or towns may offer a property tax exemption or similar property tax break for seniors or veterans. To qualify for the credit, you must have been a full-time resident of Rhode Island for the entire tax year, and you must be current on your property tax payments.
8. Prepare Your Case
In writing, briefly and professionally describe why you believe you should be entitled to a reduction. Include complete documentation, photos, etc. For instance, you must provide detailed photographs and maintenance records in order to argue that your home is in ill repair or built to a lower standard than the homes around it. Make sure you have any required forms completed and know all deadlines for your appeal. Without proper documentation, even a deserving case will fall on deaf ears.
If you have more questions about reviewing your property taxes, or to find out what your home is worth today, feel free to send me an email (JMVeegh@cox.net) or give me a ring at 401-847-8818.
