How To Challenge A Property Tax Increase

Quick answer

• Understand the basis for your property’s assessed value.
• Review comparable property sales in your neighborhood.
• Gather evidence of any errors or overvaluation.
• Follow your local assessor’s appeal process and deadlines.
• Consider professional help if the increase is significant.

What to check first (before you challenge your property tax increase)

Your Property Assessment Notice

This is the official document that states your property’s assessed value for tax purposes. It’s crucial to read this carefully to understand how the assessor arrived at their valuation. Look for details about the property characteristics used, such as square footage, number of rooms, lot size, and any features or conditions that might affect value. If you believe there are factual errors in this notice, that’s a strong starting point for an appeal.

Comparable Property Sales (Comps)

Assessors typically determine property values by looking at recent sales of similar properties in your area. This is also your primary tool for challenging an increase. Research recent sales of homes that are similar to yours in terms of size, age, condition, and location. If recent sales of comparable homes are significantly lower than your property’s assessed value, you have a solid basis for appeal. Your local tax assessor’s office may have a database or public records of these sales.

Your Property’s Condition and Features

Assessors are supposed to value your property as it is. If your property has suffered damage, is in disrepair, or has features that are less desirable than those of comparable properties, this can be grounds for a lower assessment. Document any issues with photographs and, if necessary, get estimates for repairs. This evidence can help demonstrate that your property is not worth the assessed value.

Local Appeal Deadlines and Procedures

Every jurisdiction has specific rules and deadlines for appealing property tax assessments. Missing these deadlines can mean forfeiting your right to challenge the increase for that tax year. Familiarize yourself with the process outlined by your local tax assessor’s office. This usually involves filling out specific forms and submitting supporting documentation by a certain date.

Step-by-step (simple workflow to challenge a property tax increase)

1. Receive Your Assessment Notice: You’ll get an official notice from your local tax assessor’s office detailing your property’s new assessed value.

• What “good” looks like: You have the notice in hand and can review it.
• Common mistake: Discarding the notice as junk mail or not reading it thoroughly.
• How to avoid it: Mark your calendar when you expect to receive it and open and read it immediately.

2. Understand the Assessed Value: Review the notice to see how the assessor determined your property’s value. Look at the property characteristics they used.

• What “good” looks like: You understand the key factors contributing to the assessed value.
• Common mistake: Not knowing what the numbers on the notice mean.
• How to avoid it: Contact the assessor’s office if any part of the notice is unclear.

3. Research Comparable Sales: Find recent sales data for properties similar to yours in your neighborhood.

• What “good” looks like: You have a list of 3-5 comparable sales with prices lower than your assessed value.
• Common mistake: Using sales that are too old or not truly comparable.
• How to avoid it: Focus on sales within the last 6-12 months and properties with similar size, age, and features.

4. Document Property Issues: Take photos and gather evidence of any damage, needed repairs, or unique features that reduce your property’s value.

• What “good” looks like: You have clear photographic evidence and possibly repair estimates for any issues.
• Common mistake: Assuming the assessor knows about your property’s condition.
• How to avoid it: Be proactive in documenting everything that makes your property less valuable than the assessment suggests.

5. Check Local Appeal Deadlines: Determine the exact date by which you must file your appeal.

• What “good” looks like: You know the deadline and have it clearly marked.
• Common mistake: Missing the appeal window.
• How to avoid it: Note the deadline immediately upon receiving your assessment notice.

6. Prepare Your Appeal Forms: Obtain the necessary appeal forms from your local tax assessor’s office.

• What “good” looks like: You have the correct forms and understand what information is required.
• Common mistake: Using the wrong form or leaving sections blank.
• How to avoid it: Download forms directly from the official government website or pick them up in person.

7. Gather and Organize Evidence: Compile your comparable sales data, photos of property issues, and any other supporting documents.

• What “good” looks like: All your evidence is organized and easy to present.
• Common mistake: Submitting disorganized or incomplete documentation.
• How to avoid it: Create a binder or digital folder for all your appeal materials.

8. File Your Appeal: Submit your completed forms and all supporting evidence before the deadline.

• What “good” looks like: You have confirmation that your appeal was received by the deadline.
• Common mistake: Sending it by regular mail without proof of delivery.
• How to avoid it: File in person and get a receipt, or use certified mail with a return receipt.

9. Attend the Hearing (if applicable): If your appeal proceeds to a hearing, present your case calmly and clearly.

• What “good” looks like: You articulate your points effectively and answer questions directly.
• Common mistake: Becoming emotional or unprepared.
• How to avoid it: Practice your presentation and focus on the facts.

10. Await the Decision: The assessor or appeals board will review your case and issue a decision.

• What “good” looks like: You receive a written decision regarding your appeal.
• Common mistake: Not understanding the next steps if the appeal is denied.
• How to avoid it: Ask about further appeal options during your initial hearing or in the decision letter.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Missing the appeal deadline	Forfeiting your right to challenge the current year’s assessment.	File your appeal as soon as you receive your assessment notice. Most jurisdictions have strict deadlines.
Not understanding the assessment basis	Inability to identify factual errors or overvaluation.	Carefully read your assessment notice. Contact the assessor’s office for clarification on how your property’s value was determined.
Using irrelevant comparable sales	Weakening your appeal with data that doesn’t accurately reflect your property.	Focus on sales of homes that are truly similar in size, age, condition, features, and location to yours. Check the assessor’s own comparable sales data.
Failing to document property issues	Overlooking significant factors that reduce your property’s market value.	Take clear, dated photos of any damage, needed repairs, or unique features that detract from your property’s value. Obtain repair estimates if possible.
Submitting incomplete paperwork	Delaying your appeal or having it rejected outright.	Ensure all required fields on the appeal form are filled out accurately. Double-check that all supporting documents are included.
Not attending a scheduled hearing	Automatically losing your appeal by default.	Treat the hearing as a critical appointment. If you absolutely cannot attend, contact the assessor’s office well in advance to reschedule or see if a written submission is sufficient.
Using emotional arguments	Undermining your credibility and factual case.	Stick to objective facts, data, and evidence. Present your case calmly and professionally, focusing on why the assessed value is incorrect based on market conditions and your property’s condition.
Not understanding further appeal rights	Being stuck with an incorrect assessment if your initial appeal fails.	Inquire about the next steps in the appeals process if your initial appeal is denied. This might involve a higher board or a judicial review.
Assuming the assessor is always right	Paying more in property taxes than you legally owe.	Property tax assessments are not always accurate. Take the initiative to verify the assessment and challenge it if you have valid grounds.
Incorrectly identifying your property	Filing an appeal for the wrong parcel or with incorrect ownership details.	Verify the property address, parcel number, and ownership information on your assessment notice before filing.

Decision rules (simple if/then)

• If your assessment notice shows factual errors (e.g., wrong square footage, incorrect number of bathrooms) then you have strong grounds for an appeal because these are objective mistakes.
• If recent sales of comparable homes in your neighborhood are significantly lower than your property’s assessed value, then you should file an appeal because this indicates your property is overvalued relative to the market.
• If your property has suffered significant damage (e.g., from a storm or fire) and this is not reflected in the assessment, then you should appeal because the assessment should reflect the property’s current condition.
• If your local jurisdiction has a clear appeals process and you have gathered compelling evidence, then you should file an appeal because you have a reasonable chance of success.
• If the property tax increase is small and your evidence is weak, then you might consider not appealing because the time and effort may not be worth a minor reduction.
• If you are unsure about the accuracy of your assessment or the appeals process, then you should consult with a property tax professional because they can provide expert guidance.
• If your appeal is denied and you have strong evidence that the assessment is still incorrect, then you should investigate further appeal options because you may have recourse through higher boards or courts.
• If you discover your property was assessed based on outdated or incorrect information about its features, then you should appeal because the assessment must be based on accurate property data.
• If the assessor’s valuation method seems inconsistent with how similar properties were valued, then you may have grounds for an appeal based on unequal treatment.
• If you are confident in your research and evidence, then you should proceed with filing an appeal because a successful appeal can save you money on property taxes for years to come.
• If you are facing a very large property tax increase and the assessor’s justification seems questionable, then seeking professional help is advisable because the stakes are high and expertise can be crucial.
• If you can demonstrate that your property’s assessed value is higher than its actual market value, then you have a strong case for an appeal because property taxes are based on market value.

FAQ

Q: How do I find out my property’s assessed value?

A: Your property’s assessed value is typically found on the official property tax assessment notice sent to you annually by your local tax assessor’s office. You can also usually find this information on your local government’s website by searching for property records.

Q: What is a “comparable sale” or “comp”?

A: A comparable sale, or “comp,” is the recent sale price of a property that is similar to yours in terms of size, age, condition, location, and features. These sales are used by assessors to determine property values and are your best evidence when appealing an assessment.

Q: Do I need a lawyer to challenge my property tax increase?

A: Not always. For many appeals, especially those based on clear factual errors or straightforward market comparables, you can represent yourself. However, for complex cases or if the amount in question is significant, consulting a property tax attorney or appraiser is recommended.

Q: What if my property is in poor condition?

A: If your property has significant damage or is in disrepair and this condition is not reflected in the assessment, you can use this as grounds for appeal. Be sure to gather photographic evidence and, if possible, estimates for necessary repairs.

Q: Can I appeal based on the amount of property tax I have to pay?

A: Generally, you cannot appeal solely based on the amount of tax you owe or your ability to pay. Appeals must be based on the argument that your property’s assessed value is too high compared to its actual market value or to similar properties.

Q: What happens if my appeal is denied?

A: If your initial appeal is denied, you usually have the option to appeal to a higher authority, such as a county board of equalization or a state tax tribunal. The specific process and deadlines for further appeals will vary by location.

Q: How long does the appeals process take?

A: The timeline can vary significantly depending on your local jurisdiction and the complexity of your case. It can range from a few weeks to several months. Be patient and keep track of any communication from the assessor’s office or appeals board.

Q: Is there a fee to file a property tax appeal?

A: In most cases, there is no fee to file an initial appeal with the local assessor’s office. However, if you proceed to higher levels of appeal or hire professionals, there may be associated costs.

What this page does NOT cover (and where to go next)

• Specific legal requirements or tax laws for your state or municipality.
• Next topic: Research your local government’s tax assessor’s website for detailed procedures and forms.
• The exact market value of your property without a professional appraisal.
• Next topic: Consider hiring a licensed real estate appraiser for an independent valuation.
• Investment advice related to property ownership or tax implications.
• Next topic: Consult with a financial advisor or tax professional for personalized investment and tax planning.
• Appeals for other types of taxes, such as income tax or sales tax.
• Next topic: Seek information specific to those tax types from the IRS or your state’s department of revenue.