Is Your Property Tax Bill Accurate?

By Teresa Ambord

As property values across most of the nation rise, many homeowners have been stunned to find that the downside of home appreciation may be, an inflated property tax bill.

If that happens to you, don't just accept it without doing some checking.  The National Taxpayers Union estimates that as many as 60 percent of home value assessments are incorrect.  Yet even though most requests for correction result in a reduction of taxes, only two percent are challenged.

Recent errors are not the only problem. Errors may exist on your bill that were made before you owned the property but went unnoticed or unchallenged.  If you believe your bill is too high by at least ten percent, you may want to ask questions. But even so, pay the bill on time to avoid penalties, unless you are notified in writing by the tax authorities otherwise.

Most challenges occur because the homeowner believes an incorrect value was assigned to his/her home.  Read your bill carefully to differentiate between the tax that is charged based on your home’s value and assessments for services in your area, such as sewer bonds, special school bonds, water district bonds. You may find those listed at the bottom of your tax bill.  Like it or not, we pay for them with our property tax.

Examine your bill to see if it tells you how the amount due was calculated. If that information is not clear, call your Assessor's office and find out, then calculate the bill yourself.    Another caution:  even if you think the bill is based on too high a value, if you have reason to believe you could sell the house for more than that, you may be better off not pointing this out to the taxing authority.

Check the Facts

If your bill includes information such as the size of the home, is it correct?  Simple errors are common, such as mistakenly listing a home that is 2300 square feet as 3300, or transposing two numbers and listing a 2300 square foot home as 3200.  If you or a previous owner obtained a permit for an improvement, such as a room addition, but never completed the work, your bill may still include the value of that permitted addition.

If you believe there's an error, be prepare to show the Assessor the following:

  • Math errors and incorrect measurements or description.
  • If you live in a tract of similar homes and you know that others like yours assessed lower, point this out to the Assessor (though this won't necessarily be easy information to get).
  • If the home has a negative feature - such as a crack in the foundation - that should be included in the Assessor’s calculation, along with proof   (photos or an inspector's report).
  • During your appointment, ask the Assessor if there are special credits available to you, such as for veterans, the elderly, and the disabled.

Generally, there are two ways to get tax relief:

1. Ask for a negotiation with your local tax authority.  Have all the documentation you can, including photos, lists of comparable sales, and any records you have which may indicate differences with the records.

2. If the negotiation doesn’t bring satisfaction, you may want to file an appeal or protest at the Assessor’s office.  The Assessor’s staff will tell you how to initiate the process.

Note: There could be a very short window of opportunity to file a challenge.  Call the Assessor’s county office, or go to their Web site to find out the deadline, the fee (if there is one) and what you’ll need to prove your contention.

As a last resort, you may have to go to court. If you do this, you may want to have your accountant or other professional adviser help you determine the value of your property.

You can purchase a booklet on fighting property taxes from the National Taxpayers Union for $6.95 at:

Or you can register for a free trial membership in the American Homeowner’s Association which will entitle you to an free online Property Tax Reduction Toolkit.