We all know that homes in many markets across the country experienced substantial gains in appreciation over the last few years of heated real estate activity. While sale prices are currently leveling out, you may have experienced “sticker shock” if you recently got a property tax assessment that shot way up.

 

As a matter of fact, property tax collections across the nation were up 35% from 2002 to 2006 (U.S. Census Bureau). That’s twice the growth of personal income, spurring some 15 states to consider tax-cut proposals.

 

If you don’t want to wait for new legislation, you can simply “act locally,” and challenge your tax bill. It’s not a hopeless case, because the American Homeowners Association (AHA) estimates that 60% of homes are in fact assessed too high.

 

Don’t march down to the Assessor’s office until you’ve checked your property data card for errors. Are the number of bedrooms and baths correct? Finished or unfinished basement? Lot size? Assessments are often based on replacement cost or what your home would sell for, so check with your insurance policy and real estate transaction records to determine if those figures are in line with what your tax bill states.

 

Not enough homeowners bother to make a challenge, but 70% of those who document and report errors manage to lower their tax bill (AHA). It’s well worth a look.

Bennington VT, Community, Investment, Market Outlook

 

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