Real Property Taxes are at the front of everyone's mind these days because property values in New York have declined so dramatically. When property values were soaring homeowners were simply not aware of what was happening in our municipalities. Simply put, our county was making money. Well, times have changed, the market turned around, property values are down, and homeowners are faced with outrageous property taxes. Town and county officials aren't getting it! Home prices have declined, and the more they hike our taxes the valuation of our homes goes even further down!

 If you believe your home is over assessed, it’s your right to challenge the assessment.

 Property taxes are calculated by fair market value. The amount of a particular property's tax bill is determined by two things: the property's taxable assessment and the tax rates of the taxing jurisdictions in which the property is located. The tax rate is determined by the amount of the tax levy to be raised from all, or part, of an assessing unit, and the unit's total taxable assessed value. The assessment is determined by the assessor and should be based on the value of the property less any applicable property tax exemptions.

 The assessor can estimate the market value of property based on the sale prices of similar properties. A property can also be valued based on the depreciated cost of materials and labor required to replace it. Commercial property may be valued on its potential to produce rental income for its owners. In other words, the assessor can use whatever approach provides the best estimate of a property’s market value; they must be assessed at their current-use value.

What your neighbors pay in taxes for what may be a similar property is not considered by the municipality in the grievance process. Their property may be under-assessed. Actual sales are generally considered the best evidence of a property's market value.

Homeowners have a right to challenge their taxes, and Grievance Day is around the corner. NY property taxes are out of control, property values are down but municipalities do not like to lower assessments and they certainly don’t make the process of grieving them easy.

What you can do.

To start with, you need to gather together some information such as comparable sold properties, and put aside a lot of time for the process. Don’t know where to start? Have your Realtor provide you with a current market analysis of recent sales in your area, and/or have your house appraised by a certified appraiser. I can provide you with several in the area.

Hire a professional if you don't want to spend the time to fill out the copious paperwork, attend and present to the hearing board. A tax certiorari attorney can make a big difference in how successful your grievance will turn out. You'll stand a much greater chance working with an attorney than going it alone, for it is a long process that can be frustrating and must be done in a timely manner. Fees by a tax certiorari attorney are generally calculated as a percentage of the first years saved taxes.

Your assessments cannot increase with your grievance application. The Board of Assessment Review (BAR) and the Small Claims Assessment Hearing Officer (SCAR) only have authority to review the evidence presented, and if accepted they can only lower your assessment.

If you live in a Village, you must go first go through your town's grievance day, and then once that has been accepted you then proceed to have your village taxes grieved.

You can challenge your assessment every year unless you have had a successful challenge, which requires you wait for re-grievance for two years.

 This pertains to anyone who feels their home is over assessed, and cares to do something about it. I am sure the key points work for anyone…anywhere, but please be sure to check with your county, town and village officials for the proper procedure for your particular area.

 Selling Soon?

If you are planning to sell your home in the near future or are currently on the market and don't feel it's worth the effort, think again. Even if the entire process isn't completed before the sale, at least you can inform potential buyers that you care enough to have started the process for them. You might even consider paying for that Tax Attorney's fee as an incentive.

For more information on grieving your Taxes or for a Current Market Assessment of your property, please contact me direct.