You may be able to reduce your property taxes

Did you know that you might be able to reduce your property taxes? Property taxes are due in a couple of days (they are actually “due” November 1st, but they are not delinquent until after December 10th). If you have an impound account you have been paying toward your taxes each month. If you don’t, you’ll have to send the County Assessor a check. In California your taxes are based on the value of your home when you purchased it, or after you have made any significant improvements. Over the last few years the value of real estate has declined, which means your home may actually be worth less now than when your home’s value was last assessed for property taxes. In that case you can petition to lower your property taxes. While it is your civic duty to pay taxes, it is also your right not to pay more than your fair share.

Read your tax bill

A real estate assessment is conducted by the local government to assign a value to your home for taxation purposes. An assessment isn’t the same as a private appraisal, and the assessed value of your home isn’t necessarily how much you could sell it for today. The assessed value of your home is printed on your tax bill. In California, your property tax will typically be one percent of the home’s assessed value plus any local assessments for things like school bonds, and mosquito abatement.If you think your home’s assessment is higher than it should be you can challenge the assessment. The procedure for appealing in your area is typically listed on the back of your property tax bill.

Bolster your case

To be successful in petitioning for a reduction you will have to have good information to prove your case. To determine your home’s value you need three to five good comps (properties similar to yours in your neighbourhood). Ask a good real estate agent who you trust to provide those comps for you. Most will provide it for you free of charge.Once you identify comps, check the assessments on those properties. Most local governments maintain public databases, but again you could seek help from your real estate agent. If the market value or the assessed value of the comps is lower than your assessed value you can argue yours is too high.

Please note this article is intended to provide general information about property taxes. It is not intended to be tax or legal advice you should always consult a tax professional or attorney for such advice.