Property tax appeal: Should you appeal your property’s assessed value in McKean County, Pennsylvania?
Homeowners in McKean County are completely aware of the burden of real estate tax; those that have invested their lives in locations where these taxes are traditionally high feel the impact more than the majority of. The effect of these taxes can be even worse for those who have actually lived in their residential properties for some time, as they have actually experienced firsthand the taxes rise every year. But the bad news is possibly overpaying your property taxes and be completely unaware. Here are some common factors individuals are overpaying their properties tax.
Is your McKean County home over assessed?
A high home valuation is the main reason that people appeal the amount they are paying on their real estate tax. In most cases, people feel that the valuation put on their home does not reflect the market value need to they attempt to offer it today. The most convenient method to find this out is to contact some local real estate agents. They should be able to inform you the series of values equivalent homes are selling for in your location. Keep in mind, the real market value of your home will not be realized until a sale is finally closed. When you receive your home evaluation, you will be offered a 30-day window in which to appeal any valuation. Otherwise, you will need to wait until next year to appeal.
Can you get the actual market value of your house?
It is probably beneficial to reach out to a local real estate agent or your assessor in McKean County, Pennsylvania. If you feel your property has been badly miscalculated, a professional appraisal could prove extremely affordable in the long run
Most do not realize you are not allowed to challenge your property tax bill in Pennsylvania, however you can certainly lodge an assessment appeal, remember that despite how you feel about the bill, if you do not pay, it can result in the foreclosure of your house.
To successfully appeal, you will require to reveal a minimum of three similar homes that have been assessed at a lower value. The closer these homes are in size and place to yours, the greater the possibility of success you will have on appeal
Specific circumstances that may have minimized the value of your residential property
If there are exceptional scenarios that straight lead to the reduction of your home value and these are not shown in your property assessment, these are clear grounds for appeal. Just supply evidence of these scenarios, and the appeals process should be straightforward.
You have just recently bought your home in McKean County, Pennsylvania for much less than the assessed 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 been assessed at by the assessor, this is clear grounds for appeal. If a professional evaluates your property much lower than that of the assessed value, this is significant proof to support your appeal. You can always pay for a brand-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 have to accept a high property assessment; you can always appeal and get them reduced while doing so.
How do you appeal your property assessment in McKean County?
Every State has their own criteria for house assessment value appeals. Something they all have in common; the only argument that they will accept is that your home has been assessed higher than it deserves. As your McKean County house taxes are calculated basically by multiplying the evaluated value of your house by its areas set tax rate, you do not have any grounds to appeal the tax rate just the property assessment. Your only opportunity of approach is to prove your home is valued less than the value the assessor thinks.
On receiving your house assessed value, your county will offer you a predetermined window in which to appeal. These can differ considerably from 30 to 90 days so your county appeal deadline is the first thing you want to determine. However, keep in mind if you miss this due date there’s nothing you can do, and you will be forced to wait an additional year for a chance to appeal your house assessed value!
The fastest and easiest way to file an appeal in McKean County is to do so on the website of your county, town or city. The costs associated with each request can vary depending on the preliminary value of your house assessment. The expense of an appeal differs could be as little as $10 to $100, depending on where you live.
The first step in the process is to ensure that your regional tax assessor has included the appropriate property details to start with. Sometimes, facts on your home may be incorrect such as, houses have been lifted with basements that don’t exist; such examples are wrong and could lead to your home value being reduced immediately. The more information that you can gather as to why you feel your home is overvalued, the more powerful your case for an appeal.
If there are no obvious concerns with the info on your property, you will need to find details of comparable homes in your area that have a lower assessment. This will be the most convenient way to prove your case. You will want to discover three or four houses that are all the same size as yours, in the exact same location, whose value is much less lower than your property; this will be your grounds for appeal.
In some areas, you’ll be asked to attend a property appeal hearing, so if this does take place, do not be daunted. In general, these hearings are simply called to permit you to present the info you have actually collected in support of your claim. You will also be permitted to take a look at any incorrect information that may be on file about your home. You ought to be ready for this hearing and have all the information you‘ve gathered about comparable houses and sales of similar houses in McKean County.
Be prepared for the tax assessor to argue his/her counter-argument. One of the most popular ones here is that your home in question is more modern-day than the ones you’re comparing it to. Be prepared for such an argument because if you get to this stage, the Assessor believes you are not deserving of a reduction in value and will want to win his/her case by embellishing on the facts to support their case. It’s is always crucial to bear in mind that there are no additional charges connected to submitting an appeal; the worst result being that your property assessed value is the same.
Is it worth filing an appeal?
If you really feel that your house has been miscalculated, an effective appeal of your McKean County home assessment might lead to substantial cost savings. If there are only a few hundred dollars of possible savings, it might not be worth your time. You also need to consider that the hearing could be scheduled during a workday, which might result in a loss of profits. 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 arrangements to possibly eliminate wage loss.
Pay Your Property Tax Or Lose Your 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.