Appeal tax assessment: Should you appeal your property’s assessed value in Chester County, Pennsylvania?
House owners in Chester County are totally knowledgeable about the burden of real estate tax; those that have invested their lives in areas where these taxes are generally high feel the effect more than a lot of. The effect of these taxes can be even worse for those who have lived in their residential properties for a long time, as they have experienced firsthand the taxes rise year after year. The bad news is possibly overpaying your home taxes and be completely uninformed. Here are some common reasons people are overpaying their homes tax.
Is your Chester County property over assessed?
A high house assessed value is the primary reason that people appeal the dollar amount they are paying on their property taxes. In most cases, individuals feel that the assessment put on their residential property does not show the market value must they try to sell it today. The easiest way to discover this out is to call some local realtors. They should be able to tell you the variety of values equivalent homes are selling for in your area. Remember, the actual value of your home will not be realized until a sale is closed. When you receive your home assessment, you will be given a 30-day window in which to appeal any assessment. Otherwise, you will need to wait up until next year to appeal.
Can you get the actual value of your house?
It is most likely beneficial to contact a regional real estate representative or your assessor in Chester County, Pennsylvania. If you feel your property has actually been severely misestimated, a professional evaluation could show very affordable in the long run
Often people do not know you are not allowed to dispute your property tax bill in Pennsylvania, however you can unquestionably lodge an assessment appeal, bear in mind that despite how you feel about the bill, if you don’t pay, it can result in the foreclosure of your home.
To successfully appeal, you will need to show a minimum of 3 similar homes that have been evaluated at a lower assessed value. The closer these homes are in size and place to yours, the greater the opportunity of success you will have on appeal
Specific scenarios that may have actually minimized the value of your residential property
If there are extraordinary scenarios that directly result in the decrease of your residential property value and these are not reflected in your property assessment, these are clear grounds for appeal. Just provide proof of these scenarios, and the appeals process should be straightforward.
You have recently bought your property in Chester County, Pennsylvania for a lower value than the assessment value
If you have evidence of the purchase price of your home or you have a recent appraisal that does not reflect the amount your home has actually been assessed at by the assessor, this is clear grounds for appeal. If a professional evaluates your property much lower than that of the assessment, this is substantial evidence to support your petition. You can always request a new appraisal even though this will cost a couple of hundred dollars it could be worth it in the end. The good news is that you do not need to accept a high real estate assessment; you can always appeal and get them lowered while doing so.
How do you contest your home assessment value in Chester County?
Every State has their own criteria for home assessment value appeals. One thing they all have in common; the only groungs that they will accept is that your residential property has actually been evaluated higher than it‘s worth. As your Chester County home taxes are computed basically by multiplying the assessed value of your home by its locations set tax rate, you do not have any grounds to appeal the tax rate just the house assessment value. Your only avenue of approach is to show your house is less than the value the assessor believes.
On receiving your house assessment, your county will give you a predetermined window in which to appeal. These can vary significantly from 30 to 90 days so your county appeal deadline is the first thing you want to determine. However, remember if you miss this deadline there’s nothing you can do, and you will be forced to wait an additional year for an opportunity to appeal your property assessment!
The fastest and simplest method to file an appeal in Chester County is to do so on the assessment website of your county, town or city. The fees associated with each appeal can vary based on the preliminary value of your real estate assessment value. The expense of an appeal varies could be as little as $10 to $100, depending upon where you live.
The first step in the procedure is to ensure that your regional tax assessor has included the right real estate details to start with. Sometimes, information may be incorrect such as, homes have actually been raised with basements that do not exist; such examples are wrong and could cause your house value being lowered right away. The more details that you can gather as to why you feel your home is overvalued, the more powerful your case for an assessment appeal.
If there are no obvious issues with the details on your property, you will need to find details of comparable homes in your area that have a lower assessment. This will be the simplest method to show your case. You will want to find 3 or 4 properties that are all the same size as yours, in the same location, whose value is much less lower than your own; this will be your grounds for appeal.
In some areas, you’ll be asked to go to a real estate appeal hearing, so if this does take place, do not be intimidated. In general, these hearings are simply called to enable you to present the details you‘ve collected in support of your claim. You will likewise be enabled to take a look at any false details that might be on file about your residential property. You need to be prepared for this hearing and have all the data you‘ve gathered about comparable homes and sales of comparable houses in Chester County.
Be prepared for the tax assessor to argue his/her counter-argument. Among the most popular ones here is that your home in question is more modern-day than the ones you’re comparing it to. Be ready for such an argument because if you get to this stage, the Assessor believes you are not deserving of a reduction in assessed value and will want to win his/her case by elaborating on the facts to support their position. It’s is always crucial to remember that there are no additional penalties attached to submitting an appeal; the worst result being that your real estate assessment is the same.
Is it worth filing an appeal?
If you truly feel that your house has been misestimated, a successful appeal of your Chester County house assessment value could lead to considerable savings. If there are just a couple of hundred dollars of potential savings, it might not be worth your time. You also need to consider that the hearing could be set up during a workday, which may lead to a loss of incomes. Find out as soon as possible when the hearings take place, and will it be a teleconference or in-person hearing. This way you can make the appropriate arrangements to possibly eliminate wage loss.
Real Estate Tax For Property
Real estate properties in the U.S. are taxed by the federal and state governments. Taxes on these properties are a major source of revenue for local governments. Property tax rates, in the form of percentage, are usually decided by city councils, school boards, town boards, village boards and county legislatures and are collected each year by municipalities such as cities, counties and districts. Every year normally during September or October, the board conducts budget hearings to find out how much funds they will need for their operations the following year. The tax rate is then determined by dividing the board's total taxes by the total assessed value of the jurisdiction.
Property taxes have a special purpose. The funds collected from taxpayers
are used by municipalities to improve vital public facilities and infrastructure such as schools, sewers, libraries, fire stations, hospitals, parks, roads and bridges.
Laws on the various aspects of real estate properties as well as forms of property tax vary from state to state. However, there's a standard formula in calculating property taxes on a home. The normal process involves multiplying the assessed value of a certain property by the prevailing tax rate. Exemptions, if any, are then deducted from the resulting figure. Currently, some 40 states give property tax credits or homestead exemptions that allow a property to have a lower taxable assessed value.
In some states, the property tax rate is known as a millage tax, millage rate or mill levy with one mill equivalent to 1/1,000 of a dollar. Simply put, an owner of a property will have to pay one dollar for every $1,000 in taxable value.
The assessed value of a property is vital in determining the property tax. It is here where the assessor comes in and not in calculating the property tax as some other people might believe. To get the assessed value, the assessor estimates the market value of a property or the price it would likely sell for in the real estate market. This is done by conducting studies and analysis of the local real estate market and taking into consideration new construction, improvements done to the property and demolition of structures.
On your own as a homeowner, you should get an idea of your home's market value based on the sale prices of comparable properties in your neighborhood. If in the event you find that your assessment is a bit high, there is still a chance to have the value reduced through administrative and judicial proceedings or by consultation with your local assessor.
In coming up with the assessed value for residential properties, the actual value is multiplied by the residential assessment rate. The residential assessment rate is usually set by the state thus, it differs in every state.
So for example, the actual value of a home is $120,000 and the assessment rate is 7 percent, the assessed value would be $8,400.
Meanwhile, in getting the property tax for the same home valued at $120,000 with a tax rate of say, 25 percent, multiply the assessed value with the tax rate ($8,400 x .025) and you'll have a property tax bill of $2,100.
Keep in mind that property taxes have to paid each year and failure to do so would mean penalties. If possible, learn more about this important tax and other related programs such as tax breaks and tax reliefs that could provide you and your family reduced taxes.