What is a tax appeal?
A property tax appeal is a formal process by which a property owner challenges the assessed value of their property for the purpose of determining property taxes. The goal of a property tax appeal is to demonstrate that the assessed value of the property is inaccurate.
What should a homeowner think about when considering a tax appeal?
1. Assessment Accuracy: Evaluate whether the assessed value of your property is accurate. You will want to review the Notice of Assessment and the information found on the tax assessor’s site for your county. Samples from Fulton County, Georgia are shown below and will be similar in other Georgia counties. Look for any discrepancies or errors in property characteristics, such as square footage, number of bedrooms or bathrooms, or property condition. Compare your property’s assessed value with similar properties in your area to determine if there is a significant disparity.
2. Recent Sales and Market Conditions: Check recent sales of comparable properties in your neighborhood or similar areas. If recent sales indicate that property values have declined or are lower than the assessed value of your property, it could provide a strong basis for an appeal. Sales comps that are similar or higher than your assessment may mean that, like it or not, your assessment is accurate. Your favorite real estate agent is a great source of recent sales information. Other online sources may not be 100% accurate.
3. Eligibility for Exemptions or Special Programs: Research if you qualify for any property tax exemptions, deductions, or special programs. The deadline to file for these exemption are April 1 so it would be too late to file for the current tax year. That does not mean you cannot go ahead and file for these exemptions so that they apply for next year. For example, some jurisdictions provide exemptions for senior citizens, veterans, or homeowners who make energy-efficient improvements. These programs can help reduce your property tax burden without the need for an appeal. The state provides certain basic appeals which can be found on the Georgia Department of Revenue site. Georgia counties may provide additional exemptions for residents of their county. Also note that Georgia passed a special one-time 2023 Property Tax Relief Grant which will provide an additional $18,000 value exemption for property owners who have a homestead exemption in place for 2023. This additional exemption amount may not show up on the initial assessments that the counties send but will appear on the final bill with a note that it was provided by the Governor and the General Assembly.
4. Available Evidence and Documentation: Gather all relevant evidence and documentation to support your case. This may include recent property appraisals, sales comparables, photographs of property damage, or any other relevant records. Having strong evidence to demonstrate the inaccuracies in the assessed value will strengthen your appeal.
5. Timelines and Deadlines: Understand the timelines and deadlines for filing a tax appeal in your jurisdiction. Missing the deadline can result in losing your opportunity to appeal for that tax year. Ensure you have enough time to gather evidence, prepare your appeal, and submit it within the required timeframe. The deadline in Georgia is 45 days from the date of the county Assessment Notice. The appeal is filed with the county (not the state) and there is a standard appeal form.
Portion of the Georgia Tax Appeal form found @ https://dor.georgia.gov/pt-311a-appeal-assessment-form
6. Costs and Potential Outcomes: Consider the costs associated with pursuing a tax appeal. This may include filing fees, hiring professional help if needed, and potentially attending hearings or meetings. Evaluate the potential outcomes of a successful appeal, such as a reduced tax liability, and weigh them against the costs involved. One consideration in favor of appealing the tax assessment is the effect of a successful appeal on future years – the tax assessment is frozen for three years.
Should a homeowner appeal the taxes themselves or hire a tax appeal company?
Pros:
Expertise and Experience: Professional companies specializing in property tax appeals have in-depth knowledge and experience. They are familiar with the local laws, regulations, and assessment methodologies. They can leverage their expertise to analyze your property’s assessment and identify potential flaws or discrepancies, increasing your chances of a successful appeal.
Time and Effort Savings: Preparing a tax appeal can be a complex and time-consuming process. By hiring an outside company, you delegate the responsibilities of gathering evidence, researching, preparing the appeal, and navigating the appeals process. This can save you significant time and effort, allowing you to focus on other priorities.
Enhanced Negotiating Power: Experienced property tax appeal companies often have established relationships with local tax assessors, appraisal districts, or assessment review boards. They understand the appeal process and can negotiate on your behalf. Their knowledge and professional relationships can potentially lead to more favorable outcomes and higher chances of success.
Access to Resources and Data: Outside companies may have access to a broader range of resources and data that can strengthen your appeal. They may have access to databases of property sales, market trends, and valuation models that can be used to support your case. This additional information can provide a more comprehensive analysis of your property’s value.
Cons:
Cost: Hiring an outside company for a tax appeal comes with a cost. Property tax appeal companies typically charge fees based on a percentage of the tax savings achieved or a flat fee which is usually higher for more expensive properties. It’s important to weigh the potential savings from a successful appeal against the costs associated with hiring a professional.
Lack of Control: When you hire an outside company, you are entrusting the appeal process to them. While this can relieve you of the burden of managing the appeal, it also means you have less direct control over the decisions and actions taken on your behalf. You may need to rely on their judgment and expertise.
No Guaranteed Outcome: Hiring an outside company does not guarantee a successful appeal. While professionals can increase your chances of success, there are no guarantees in the appeal process. Factors such as the strength of your case, the assessment methodology, and the decisions of assessment review boards can all impact the outcome.
Personal Familiarity with the Property: Outside companies may not have the same level of personal familiarity with the unique characteristics or circumstances that affect the value of your property. Communicating these details effectively to the outside company can be crucial for building a strong case.
Ultimately, the decision to hire an outside company for a tax appeal depends on your individual circumstances, comfort level, and priorities. It’s important to carefully evaluate the potential benefits and drawbacks, consider the costs involved, and assess the complexity of your case before making a decision.
What is the real estate agent’s role in property tax appeals?
Let your sphere of influence know that there is an appeal process in Georgia if the assessment is not in line with true market values.
Provide links like those included in this article to the state information. Include county-specific information as well when you are sharing within a particular geographic area.
Provide people with the pros and cons of hiring outside assistance but make it clear that the homeowner should choose which appeal company to use, if any.
Include a reminder to the homeowner to confirm their exemptions are still in place. The county can drop an exemption is certain deed changes are made. Remind them to look for additional exemptions that may apply based upon their age, military status, etc.
More info for your listening pleasure
My podcast on property tax appeals will be coming soon. The homestead exemption episode published in February. Subscribe so that you do not miss future episodes.
Want to send this information to your clients?
Feel free! Just give credit to Cheryl King, Thomas & Brown, and the resources on smartstips.com.
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