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I lived in NJ, twice. Appeals are handled at the county level. Appraisals were acceptable in both counties that I lived in, provided that the expert appraiser wittness was present, would testify and subject him/herself to a cross examination.
The appraiser was often challenged because he/she did not have first hand knowledge of the comp properties while the assessor did, including interior pictures.
The market value needs to be more than 15% less than the assessed value to be taken into consideration.
Personally if I was going to bring a third party in to it I would rather spend that money on a lawyer with experience in the appeal process. I didn't mean to say you couldn't use an appraisal (you can use whatever you want to argue your case I guess), I just think it isn't the best use of your money in the process.
And yes, they give themselves a 15% cushion so you have to show it is over valued by more than that.
Tax Assessment (also known as Ad Valorem), is based on "Market Value."
The Tax Assessor will typically receive the information from the recorded deed when the property is sold.
A home owner can challenge property taxes by hiring an Independent Real Estate Appraiser.
An Assessor is supposed to re-assess every so years, 4, 8, or so on, depending on their rules. They use a "Mass Appraisal Model." However; Mass Appraisal Models do not take into account the true theory of "Market Value" when used alone and/or by others. The best way to re-assess is to have it appraised, according to "Market Value."
Definition of Mass Appraisal Model: "...A mathematical expression, that is supposed to show supply and demand factors interacting in the market."
In reality, it is just an Assessor's opinion (when the model is used by them), which doesn't hold beans. An Appraisal from an Independent Appraiser is what holds beans.
Assessor's have been guilty nationwide at skewing taxes.
Quote:
Originally Posted by Dressy
In our area nobody would want to hire an appraiser to correct the taxes - all the houses have remodelling done without permit so, the taxes are most likely change for the worse if they invite an appraiser.
Thank you for the well rounded responses as it demonstrates how appraisals fit into the taxes and appeals process. Some people just can't see past their commissions and don't seem to understand there is more to real estate which many people don't get exposed to on a regular basis. Every taxing authority has its own rules and regs so everyone should always check with them for local information and to determine what legal or professional documents are required.
In Florida, every sale hits the books and you can expect to pay about 2% of your sale price in property taxes. Massachusetts, on the other hand, doesn't look at recent sale prices. Each state will have it's own way to tax properties. There may be propositions that can or may protect you from steep increases. Also, now that housing prices are tumbling in some states, there are communities that are dropping assessments and property taxes while others are forging ahead and increasing taxes in spite of dropping assessments. Go figure. No real rhyme or reason. Do your homework.
In Florida, every sale hits the books and you can expect to pay about 2% of your sale price in property taxes. Massachusetts, on the other hand, doesn't look at recent sale prices. Each state will have it's own way to tax properties. There may be propositions that can or may protect you from steep increases. Also, now that housing prices are tumbling in some states, there are communities that are dropping assessments and property taxes while others are forging ahead and increasing taxes in spite of dropping assessments. Go figure. No real rhyme or reason. Do your homework.
Keep in mind that towns still need to pay their bills. And even though an assessment may drop for an entire town, you have to also look at the tax rate. They could drop every house by 50% and then turn around and raise the rate.
We all have bills to pay and at some point, responsible spending needs to come into play. Tax rates, unions, state budgets.....it is all evolving into something new.
Field inspections are common in some municipalities. One can refuse and accept the appraised value and does not stand a chance at appealing.
Without a search warrant no one has the right to enter your property. As for an appeal, you are very wrong on that unless you live in one seriously corrupt place.
In MD when a hous echanges hands the sale price in the new benchmark for property taxes. MD tax law limits property tax increases to 10%/year (some jurisdictions are lower) through a Homestead Exemption for primary residence/non-rental. So if you buy my house the property tax is one figure and that has been Homestead exempted. Let's say the Homestead exempted assessment value is $180K, that's the my property tax is based on. You buy it for $300K, which is the actual market value. Your property tax is based on that as assessments are supposed to reflect market value.
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