Property Tax Appeal: How It Works
When a homeowner believes that their property taxes are too high, the normal recourse is to appeal the assessment. What a property tax appeal does is question the assessed value of the property and to present information as to why the assessment should be lowered. Often, a property tax appeal may simply lower the assessment back to its previous level. Other times, a property tax appeal may reduce the assessed value by hundreds of thousands of dollars, or more.
There are many reasons that homeowners might want to appeal their property taxes. Foremost in many homeowners’ minds are the savings that can come with a reduced property assessment. A lower property tax assessment means a lower bill from the local tax authority. The amount of money that a person can save depends on a couple of things. First, the difference between the assessed value and the fair market value of the property. Second, the local property tax rate.
It is important to understand the timing of a property tax appeal. Generally, a property tax appeal must be filed in a specific timeframe. For example, property tax assessments are usually done once per year. Depending on the local laws, that property tax appeal must be filed within a certain time period after the assessment is issued or prior to a certain date. Failing to follow the deadlines runs the risk of having the property tax appeal denied.
A common question that many people ask is "do I need a lawyer for a property tax appeal?" The answer will depend on the specific state’s laws and the attorney’s practices. Some attorneys prefer to handle every aspect of the case , while others may prefer to offer consultation services that the client performs under the attorney’s guidance. Unless the state’s laws explicitly require the use of a property tax appeal lawyer and if you plan on doing some of the work yourself, consult an experienced property tax appeal lawyer to find out how they will help and what level of involvement you will have.
Many homeowners do not know that a property tax appeal exists. And in the mistakes that homeowners make when appealing their property taxes, it is a mistake of measurement. This basically means that a homeowner mistakes the assessed value for fair market value. This can mean that the homeowner will lose a property tax appeal that could have lowered the assessed value to the fair market value.
Some states have different property tax assessment cycles. The question then becomes, how to find the best property tax appeal lawyer near me? The best way to find a property tax appeal lawyer is to ask for recommendations, look online, and consider their qualifications. Some attorneys are experienced in a particular type of work (e.g. delinquent taxes), while other lawyers do anything and everything in the tax arena.
Interested in fighting an increased property tax assessment? You should speak to an experienced property tax appeal lawyer immediately. An attorney can help serve an appeal, understand the value of your home, and best strategies to bring down your taxes.
Advantages of Hiring Property Tax Appeal Attorneys
A significant advantage of hiring a real property tax attorney for a tax appeal is their expertise in legal proceedings. While in many cases individuals can represent themselves, property tax appeals often require more than just someone who knows how to file forms and meet deadlines. A tax attorney understands the rules and procedures in local court or administrative law. They are familiar with the requirements of any pre-hearing statements, notices of hearing, or even subpoenas for witnesses. They understand the intricacies of these proceedings and can help an individual’s case to run more smoothly and efficiently. In addition to their solid legal knowledge and experience, a capable tax appeal attorney will also have extensive negotiation skills. Experienced legal professionals understand the benefits of alternative dispute resolution, such as mediation. They know not every property owner is angry at the local tax assessor, and they understand the circumstances that brought about the dispute. They also understand the best way to resolve the dispute in the best way for all involved: the local tax assessor, the property owner, and, when applicable, the other taxpayers in the jurisdiction. It’s also critical that your tax appeal attorney has a detailed knowledge of the laws in the local jurisdiction. While some of these laws may be codified, every locality makes certain choices in their interpretation and enforcement of the law. A local property tax attorney knows how the municipality makes those choices and can act accordingly. A lack of this knowledge could endanger the overall outcome of your case if you were to choose another representative.
Property Tax Attorneys Near Me: How to Find Them
Finding qualified property tax appeal lawyers near you can be an important step towards successfully appealing your property’s tax assessment. However, with so many options available, it can be overwhelming to know where to start. Here are some strategies for locating the best property tax appeal lawyers in your area:
Research online directories One of the simplest ways to find property tax appeal lawyers in your area is to do a quick search online. Many websites, such as FindLaw and Avvo, allow you to search for lawyers by practice area and location. This can help you narrow down your options quickly.
Read reviews Once you have a few potential candidates, take the time to read reviews from previous clients. Websites like Yelp and Google Reviews can provide valuable insights into a lawyer’s communication style, level of expertise, and overall customer satisfaction. Keep in mind that all reviews should be taken into consideration rather than just focusing on the negative comments.
Ask for referrals Don’t be afraid to ask your friends, family, and colleagues for recommendations on property tax appeal lawyers in your area. Word-of-mouth referrals can be a great way to find someone you feel comfortable working with.
Check for credentials When selecting a property tax appeal lawyer, always check their credentials. The lawyer should have a law degree from an accredited law school and must have passed the bar exam in their state. Additionally, the lawyer should be licensed to practice law in the state where the appeal will take place. This can typically be accomplished through a quick online search.
Interview potential candidates Once you have narrowed down your list of potential property tax appeal lawyers, schedule interviews with each one. During the interview, ask about their experience in handling property tax appeals and their fees. This will help you determine which lawyer is the best fit for your needs.
By following these strategies, you can increase your chances of finding a qualified property tax appeal lawyer near you.
Questions to Ask a Lawyer
If your first choice of property tax appeal lawyer is not immediately available, do not despair. There are plenty of excellent ways to find the best property tax appeal lawyers in your area. You can use internet "Find a Lawyer" tools or simply search Google. You can also ask your family and friends for recommendations. In any event, when you do find a candidate, here are a few questions to consider at your initial consultation:
- Please provide me with a free valuation of my property based on recent sales in my neighborhood.
- Please provide me with your qualifications, including number of years of handling property tax appeals, number of appeals lost and won, information about professional designations.
- How long have you been practicing law?
- How many property tax appeal cases do you handle a year?
- How many of your cases do you win?
- If I do not think you are working hard enough on my file, how do I know I can go over your head and talk to a higher-up to get the matter resolved to my satisfaction?
Understanding Fees Charged by the Lawyer
The fee structure a lawyer adopts for property tax appeal will determine to a large extent your comfort with a particular attorney. Most property tax appeals are handled on a flat fee basis. This is similar to the way in which many personal injury lawyers handle their cases for their clients on a contingent fee basis but is reversed. In the contingent fee model, the client pays no fees if the lawyer loses the case and only pays if the lawyer wins. In the flat fee model, the taxpayer hiring the lawyer pays his or her fees regardless of whether the lawyer wins or loses. Flat fees are very much the norm for property tax appeals. This is because your chances of winning are never certain and so enticing you with a contingency fee is often perceived by property tax lawyers as a way of sucking you into a retainer and hoping for the best. And while there may be some merit to these unscrupulous lawyers’ approaches; they fall well short of full ethical standards for lawyers, as lawyers have long recognized in the personal injury arena.
Hourly billing is far less common for tax appeal lawyers . Some tax appeal cases are billed out on an hourly basis, but generally only for appeals in which the lawyer knows there is even a small chance that they can earn back more in savings than the fees they will be charging on an hourly basis. Cases where the lawyer believes there is little to no chance of winning the hearing or the review will not be billed at an hourly rate. So this kind of arrangement or fee schedule is for the very toughest cases.
Contingent fees, under which the lawyer earns a percentage of the difference between the tax before and after the appeal, were the norm many years ago. But taxpayers suffered losses from conflicts of interest and other results of contingent fee lawyers not looking after their clients’ interests. So this approach was abandoned by many lawyers, including our firm.
The upshot is that you will be paying a flat fee or hourly rate for your property tax appeal. If you win your appeal, you will save money because your tax will be lowered. If you lose your appeal, you will be losing the benefit of that tax savings.
What to Expect and How to Prepare for the Property Tax Appeal Process
Homeowners looking to appeal their property tax assessments should begin by gathering any relevant documents, including their property tax card, assessor’s field card, and their most recent property tax bill. They may also want to obtain any previous property tax assessments to get a sense of how the current assessment compares. When filing a property tax appeal, they should be prepared to explain why their property is overvalued and how that overvaluation is the basis for the appeal. Some common reasons for overvaluation include: inaccurate square footage of the property or building, depreciated property value due to accidental causes of destruction or damage to the property, or any other conditions materially affecting the value of the real estate or improvements.
Before you present your appeal to the Board of Assessment Review (BAR), it may be beneficial to communicate your issues with your municipal Tax Assessor or their representative in an attempt to resolve any potential disputes or issues. If the Assessor denies your claim for a reduced or altered tax assessment, you should consider applying for a hearing for an Small Claims Assessment Review (SCAR). Your attorney can advise you when the SCAR proceeding is appropriate.
The SCAR proceeding provides an administrative forum to contest the amount of assessed value of an individual property, as set by the respective municipality, before the county’s hearing officer or a neutral hearing officer jointly appointed by the county and the Real Property Tax Appeals Board.
Following a SCAR proceeding, a claimant can apply for judicial review of a small claims assessment order. Article 78 of the New York Civil Practice Law and Rules governs this process. After article 78 proceedings, a small claims assessment order can be appealed to the appellate division pursuant to CPLR 5601.
The Timeline of the Appeal Process
The timelines for a property tax appeal can be relatively short, but vary from state to state. The typical timeline for the property tax appeal process in most states includes the date of notification of a property tax increase and the assessment valuation as the start date for the timeframes to appeal. Property tax increases and assessment valuation notifications are typically sent out either on or around January 1st or January 15th. Sometimes the State may issue an annual notice of changes in value. The Appraisal Review Board then has a set period of time in which to schedule a formal hearing and notify the property owners of their property tax appeal hearing date. The timeframe for calculating the deadline for property tax appeals starts with the dates of notification and ends with the date a hearing is scheduled.
Once a date and time is set , the Appraisal Review Board will send out a certified letter to you notifying you of when your property tax appeal hearing is set to take place. Appealing your property taxes will take the form of a formal administrative hearing before the Appraisal Review Board. The Hearing Officer will parse through your appeal and the law to make a written determination, either granting or denying your appeal. It may be possible to attend the hearing remotely by telephone or Skype.
You will want to be sure and provide the Hearing Officer with the most current and reliable evidence of value that he or she can use to come to a fair and accurate valuation of your home, which includes any documentation or information you may have found in your own research that will support your appeal.
The Hearing Officer will then issue a written determination. Your property assessment may be raised or lowered depending on the evidence presented. In some cases, the value will remain the same.