Contest property taxes: Should you appeal your property’s assessed value in Hidalgo County, Texas?
Property owners in Hidalgo County are completely knowledgeable about the burden of property taxes; those that have invested their lives in areas where these taxes are generally high feel the effect more than most. The effect of these taxes can be even worse for those who have resided in their properties for a long time, as they have actually experienced firsthand the taxes increase year after year. But the bad news is perhaps overpaying your property taxes and be totally unaware. Here are some typical factors individuals are overpaying their properties tax.
Is your Hidalgo County home over evaluated?
A high property assessment is the main reason that individuals appeal the dollar amount they are paying on their property taxes. Oftentimes, individuals feel that the evaluation put on their home does not reflect the market value should they attempt to offer it today. The easiest method to find this out is to call some regional real estate agents. They should have the ability to inform you the range of worths similar homes are selling for in your location. Keep in mind, the real market value of your property will not be realized up until a sale is closed. When you receive your house assessed value, you will be provided a 30-day window in which to appeal any appraisal. Otherwise, you will need to wait up until next year to appeal.
Can you get the actual market value of your home?
It is probably worthwhile to get in touch with a regional real estate agent or your assessor in Hidalgo County, Texas. If you feel your home has been badly misestimated, a professional evaluation could show really affordable in the long run
Often people do not know you are not allowed to challenge your tax bill directly in Texas, but you can unquestionably lodge an assessment appeal, remember that no matter how you feel about the expense, if you do not pay, it can lead to the foreclosure of your home.
To effectively appeal, you will require to show a minimum of 3 equivalent homes that have been assessed at a lower value. The closer these homes are in size and place to yours, the greater the opportunity of success you will have on appeal
Particular circumstances that may have reduced the value of your property
If there are exceptional scenarios that directly lead to the reduction of your home value and these are not shown in your house assessment, these are clear grounds for appeal. Just provide evidence of these scenarios, and the appeals process should be straightforward.
You have recently purchased your home in Hidalgo County, Texas for less than the assessed value
If you have evidence of the purchase price of your home or you possess a current appraisal that does not show the amount your house has been valued at by the assessor, this is clear grounds for appeal. If a professional evaluates your residential property much lower than that of the tax assessment, this is substantial evidence to back your petition. You can always pay for a new appraisal even though this will cost a few hundred dollars it could be worth it in the end. The good news is that you do not need to accept a high property assessment; you can always appeal and get them decreased while doing so.
How do you contest your real estate assessed value in Hidalgo County?
Every State has their own criteria for property assessed 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 Hidalgo County real estate taxes are determined basically by multiplying the evaluated value of your home by its locations set tax rate, you do not have any grounds to appeal the tax rate just the real estate assessed value. Your only avenue of approach is to show your house is not worth the value the assessor believes.
Upon receiving your home assessment, your county will provide 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, remember if you miss this due date there’s nothing you can do, and you will be forced to wait a more year for a chance to appeal your home assessment value!
The fastest and most convenient method to file an appeal in Hidalgo County is to do so on the assessment website of your county, town or city. The charges associated with each request can differ based on the initial value of your home assessment value. The cost of an appeal differs could be as little as $10 to $100, depending upon where you live.
The first step in the procedure is to make sure that your regional tax assessor has included the correct property details to start with. In many cases, 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 result in your house value being decreased right away. The more details that you can gather regarding why you feel your home is miscalculated, the stronger your case for an appeal.
If there are no clear problems with the details on your property, you will need to discover details of comparable homes in your neighborhood that are assessed at a lower value. This will be the simplest way to show your case. You will want to find 3 or 4 homes that are all the same size as yours, in the same area, whose value is much less lower than your property; this will be your premises for appeal.
In some areas, you’ll be asked to participate in a property appeal hearing, so if this does occur, do not be intimidated. In general, these hearings are simply called to allow you to provide the details you have actually gathered in support of your claim. You will also be enabled to examine any incorrect information that might be on file about your home. You must be ready for this hearing and have all the data you‘ve collected about comparable homes and sales of comparable houses in Hidalgo County.
Be ready 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 contemporary than the ones you’re comparing it to. Be prepared for such an argument because if you get to this point, the Assessor believes you are not deserving of a reduction in assessed value and will want to win his/her case by embellishing on the facts to support their case. It’s is always essential to keep in mind that there are no additional penalties attached to submitting an appeal; the worst result being that your property assessment is the same.
Is it worth filing an appeal?
If you truly feel that your house has been miscalculated, an effective appeal of your Hidalgo County home assessment value might result in substantial savings. If there are only a few hundred dollars of potential cost savings, it might not be worth your time. You also need to consider that the hearing could be arranged 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 appropriate arrangements to reduce wage loss.
Are Property Taxes Fair?
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.