tax assessment (Knoxville, Niota: sale, 2010, homeowners insurance)

[snapdragon]

There is a house we want to buy but it has really high taxes. It does have city and county taxes (yuck). Does anyone here know if (once you own the house) can you fight the tax assessment to lower your taxes and if so will you be likely to win? The house is actually assessed at a higher price than we will be paying, so it seems crazy to pay that much on taxes.
Anyone here deal with this before? Or know anything that can be done? My other fear is that we ask for them to come and reassess the house and they decide that it's worth even more and raise our taxes again.

[weisgarber1]

Originally Posted by snapdragon

There is a house we want to buy but it has really high taxes. It does have city and county taxes (yuck). Does anyone here know if (once you own the house) can you fight the tax assessment to lower your taxes and if so will you be likely to win? The house is actually assessed at a higher price than we will be paying, so it seems crazy to pay that much on taxes.
Anyone here deal with this before? Or know anything that can be done? My other fear is that we ask for them to come and reassess the house and they decide that it's worth even more and raise our taxes again.

I think you can go before the tax equalization board, and attempt to get a reduction.

[jimlee]

Here's the deal on city and county taxes.

If you live in Knox County but not inside the city limits you only pay County taxes.

However you have to pay for trash pickup which is around 70-80 dollars a quarter, belong to Rural Metro fire department at around $300 a year, and your homeowners insurance will cost more because Rural Metro does not have as high a fire protection rating as the Knoxville City Fire Department.

In the city your city taxes pay for fire protection, trash protection, leaf & brush pickup at curbside, and your homeowners insurance will be cheaper.

The break even point where it becomes more advantageous taxwise to live in Knox County outside the city limits begins about the $225,000 sale price range. Under that number it's immaterial.

If you think your county property taxes are too high, Knox County maintains a Tax Equalization Board that will review any data you may want to submit to hopefully get your taxes lowered. The City of Knoxville uses the County data for their taxes so if the county lowers it the city automatically does the same.

I've been before this board on several occasions and won most times. It's a pretty informal group and hearing process. The 2 times I did not get the property taxes lowered they stayed the same and were not raised so I don't think that would be a danger for you.

Tax equalization hearings are only held during the month of June.

[snapdragon]

Thank you that is very helpful. The house is way over 225K. But I think the neighborhood is worth it.
You make going before the board sound easy. Well maybe not *easy*, but definitely not as scary as I thought it might be. Thank you for that info.

[mbmouse]

Why not ask the board to review it before you buy it? Then you would know for sure.

[FLORIDA TO NIOTA 2010]

I don't know in Tennesee but in Florida when you buy a house the taxes are usually paid at the closing and are split with the seller. Depending on the number of months the seller has owned the property. If taxes are not paid at closing the title company will give the buyer credit for the seller's portion of the taxes. Then it is up to the buyer to make sure the taxes are paid. And depending on how much you paid for the property, you taxes will be on that amount next year. Although usually the purchase price is higher. You may want to check with that property appraiser's office about how much the taxes would be on the amount you will be paying. Like you said if you ask them to appraise the property they might raise the taxes even more.
Good luck to you, hope everything works out.

[mbmouse]

Originally Posted by FLORIDA TO NIOTA 2010

I don't know in Tennesee but in Florida when you buy a house the taxes are usually paid at the closing and are split with the seller. Depending on the number of months the seller has owned the property. If taxes are not paid at closing the title company will give the buyer credit for the seller's portion of the taxes. Then it is up to the buyer to make sure the taxes are paid. And depending on how much you paid for the property, you taxes will be on that amount next year. Although usually the purchase price is higher. You may want to check with that property appraiser's office about how much the taxes would be on the amount you will be paying. Like you said if you ask them to appraise the property they might raise the taxes even more.
Good luck to you, hope everything works out.

Yes, you are correct, when you buy in FL than the next years property tax is based on the sale price. Not in TN, the assessment follows. Counties asses properties only once every so many years and until that assessment is done, the tax assessment stays the same no matter if it changed hands or not.

[goodbyehollywood]

Snapdragon--

I went before the tax equilization board last year. My house was reassessed at the purchase price plus 10%. That amounted to a 45% tax increase, which I thought was outrageous... especially since the seller assured me that the taxes would remain the same.

At that rate, I was paying higher taxes than most of my neighbors, who had much bigger homes. I prepared a spreadsheet showing tax assessments per square foot for comparable homes in my neighborhood. I only used homes built within a year of mine with similar amenities. I made a reasonable argument and we compromised near the middle. I'm still paying more taxes than my neighbors, but I feel it was a fair process.

Be prepared, be reasonable, be ready to factually defend your position and be willing to compromise and I'm sure you'll be successful in getting a reduction. The entire county's taxes will be reassessed in 2009 (I think it's 2009), so whatever you achieve will be short-lived anyway. I'm not sure when the city reassesses. And Jim Lee is right-- the appeals are only held in June. You'll receive a notice of reassessment several months before June that will give you directions on appealing. Give them a call and schedule an appointment then. Good luck to you!

[momma123]

Oh my gosh!!!!!!!!! I thought taxes in Tennessee were cheaper!!!!!!!!!!!!!!

[FLORIDA TO NIOTA 2010]

mbmouse,
Thank you. I appreciate the info.