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Thu 27 Apr, 2006 10:51 am
So April showers bring May flowers and new property assessment values.
The assessment on my nice but far from fabulous house in a decent but not fabulous neighborhood went up 18% (around $20,000) this year.
Normally I would be furious and contest the assessment based on the fact that property values are not rising that fast. However, we were planning on selling the house in May anyway and am wondering whether I should even bother contesting.
Lower assessment means lower property taxes, but is it a good idea to have the assessment value at least close to the asking price of a house? I know the assessment doesn't necessarily determine the selling/asking price but do people care about the city assessed value for reasons other that property taxes?
In my area, the asking price seldom has anything to do with the accessed value.
I'd be very leary of contesting unless you are absolutely sure you could have it lowered.
To me, it's just asking for trouble. They're gonna come and look at all the houses around you, and they know who's remodeling and such.
I think I have a pretty strong argument for contesting. Last year I let them do a walk through since it had been a long time since they have seen the inside of the house. Their reasoning was to more accurately assess the value.
Turns out thay had been over assessing for years and actually got my assessment and property taxes lowered last year. So to have an 18% jump this year seems excessive considering they only did a street assessment this year and property values have not risen 18%.
Of course I'm sure this will all be a lot of work and am wondering if it is worth the effort.
Chances are if you contest the increase you will win, or at least succeed in getting it reduced. And yes, it's probably worth the effort. Keeping the assessed value down also makes the purchase seem more attractive to a would-be buyer. As you and CT said, your property's assessed value doesn't have much to do with the FMV, unlike its appraised value.
you're selling in May? Next month?
Me, I wouldn't bother, and I'm one to look for angles like that.
But that's just me.
What will this save you in dollars?
Chai Tea wrote:What will this save you in dollars?
Unless we can't sell, which is unlikely, it won't
save me any dollars, but like Tico said, if it makes the house more attractive (less property taxes) it could
make me some more dollars.
Didn't you just put a new roof on, jp?
Ticomaya wrote:Didn't you just put a new roof on, jp?
Yes I did.... you in the market for a nice 2 over 3 duplex in Milwaukee?
As tempting as that sounds .... no.
Might have an affect on the assessment though.
I was thinking about that, but I'm pretty sure they have never lowered my taxes because my roof was old. Shouldn't that only matter if they also figured in depreciation of the old roof?
Sounds like a decent counter-argument to make if they bring it up at your appeal hearing. My guess is their reply would be something along the lines of to advising you the old roof is what kept the assessment so low over the years.
Good luck.
Ticomaya wrote:My guess is their reply would be something along the lines of to advising you the old roof is what kept the assessment so low over the years.
Good luck.
Yeah... they are sneaky bastards like that aren't they. Thanks,I might need it.
Well, a patch is an repair; a new roof is a capital improvement - meaning you can't declare it to be an expense for fed taxes, except by way of depreciation. That could be the assessor's viewpoint as well.
Anyway, the property will probably be reassessed at the time it's resold, so a lower assessment won't benefit the buyer. Of course, if the buyer thinks he will benefit. . . .
roger wrote:Well, a patch is an repair; a new roof is a capital improvement - meaning you can't declare it to be an expense for fed taxes, except by way of depreciation. That could be the assessor's viewpoint as well.
Run that by me again Roger... a new roof is a capital investment even though I am merely replacing an old roof that once was new???
roger wrote:Anyway, the property will probably be reassessed at the time it's resold, so a lower assessment won't benefit the buyer. Of course, if the buyer thinks he will benefit. . . .
Curb Appeal... or in this case tax appeal. I was also considering just showing them last years tax bill with this years assessment. If they do not recognize the difference, I see no need to make a point of explaining it to them, right?
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