Reducing Your Rental Property’s Tax Bill

The first step in reducing your rental property’s tax bill is to contact the local assessor and ask for a reassessment. In some areas, jurisdictions are voluntarily reassessing properties, although most are not, so it is important to contact the assessor to help reduce your property’ taxes.

4 Major facts about reducing the property’s tax bill:

  • Some tax appeals can be handled by mail or by dropping your tax appeal form along with supporting documents.  The documents need to include comparable properties that have sold for a lower value (Griswold, Inman News).  To get these facts, you can talk to your real estate agent, and they can help you track these sales.
  • Assessors may have staff on hand that may be able to simplify the process and procedures.  Griswold from Inman News states: “ They may be able to even reach a mutual agreement with you in which both of you and the assessor’s office sign a form agreeing to the new lower value.”  If this is not offered, then a hearing may have to take place to present the evidence to the local property tax appeals board.
  • In some areas, reductions are not permanent and you may need to file every year.  Also, be aware of cutoff dates in your area, and check with the local assessor for exact rules and policies of assessing property tax.
  • Remember that the process of appealing property taxes can be simple or very time consuming.  There are professionals that can help you or can be hired to do the legwork for you; it all depends on how much of the work you would like to do yourself or the time commitment it takes to reduce your property’s tax bill.

This information was found in an article written by Robert Griswold from Inman News.

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