Property tax appeal: Should you appeal your property’s assessed value in Knox County, Maine?
House owners in Knox County are completely aware of the burden of property taxes; those that have actually invested their lives in areas where these taxes are typically high feel the effect more than most. The impact of these taxes can be even worse for those who have lived in their homes for a long time, as they have actually experienced firsthand the taxes rise every year. But the bad news is possibly overpaying your real estate tax and be entirely uninformed. Here are some common factors individuals are overpaying their residential properties tax.
Is your Knox County home over assessed?
A high property assessed value is the primary reason that people appeal the amount they are paying on their real estate tax. Oftentimes, individuals feel that the appraisal placed on their home does not show the marketplace value need to they attempt to offer it today. The simplest way to discover this out is to contact some local realtors. They need to be able to tell you the series of values similar homes are selling for in your location. Keep in mind, the real market value of your home will not be realized till a sale is finally closed. When you receive your house assessment, you will be offered a 30-day window in which to appeal any appraisal. Otherwise, you will have to wait up until next year to appeal.
Can you get the actual value of your property?
It is probably worthwhile to reach out to a regional real estate agent or your assessor in Knox County, Maine. If you feel your home has been badly miscalculated, a professional assessment could show extremely cost-efficient in the long run
Many do not realize you are not entitled to contest your property tax bill in Maine, however you can undoubtedly lodge an assessed value appeal, bear in mind that regardless of how you feel about the bill, if you don’t pay, it can lead to the foreclosure of your house.
To successfully appeal, you will need to reveal at least 3 similar residential properties that have been evaluated at a lower assessment value. The closer these residential properties remain in size and location to yours, the greater the possibility of success you will have on appeal
Specific situations that may have minimized the value of your home
If there are extraordinary circumstances that directly lead to the reduction of your property value and these are not accounted for in your assessment, these are clear grounds for appeal. Simply provide evidence of these circumstances, and the appeals process ought to be straightforward.
You have just recently purchased your residential property in Knox County, Maine for a lower value than the assessment value
If you have proof of the purchase price of your home or you have a current appraisal that does not show the amount your house has actually been valued at by the assessor, this is clear premises for appeal. If an expert values your residential property much lower than that of the assessment, this is considerable proof to support your petition. You can always request a brand-new appraisal despite the fact that this will cost a couple of hundred dollars it could be worth it in the end. Fortunately is that you do not have to accept a high real estate assessment; you can always appeal and get them reduced in the process.
How do you appeal your house assessment value in Knox County?
Every State has their own requirements for home assessed value appeals. One thing they all have in common; the only argument that they will accept is that your property has been evaluated higher than it‘s worth. As your Knox County house taxes are determined basically by multiplying the assessed value of your home by its locations set tax rate, you do not have any premises to appeal the tax rate just the real estate assessed value. Your only avenue of approach is to prove your house is less than the value the assessor believes.
Upon receiving your house assessment, your county will provide 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, keep in mind if you miss this due date there’s absolutely nothing you can do, and you will be required to wait a more year for a chance to appeal your home assessed value!
The fastest and simplest method to file an appeal in Knox County is to do so on the assessment website of your county, town or city. The fees related to each request can differ dependent on the preliminary value of your real estate assessed value. The cost 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 right property information to start with. Sometimes, information may be in error 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 immediately. The more information that you can gather as to why you feel your home is miscalculated, the stronger 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 neighborhood that are assessed at a lower value. This will be the most convenient way to prove your case. You will want to find three or four homes that are all the same size as yours, in the exact 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 attend a real estate appeal hearing, so if this does take place, don’t be intimidated. In general, these hearings are simply called to permit you to present the information you have actually gathered in support of your claim. You will also be enabled to analyze any false information that may be on file about your residential property. You ought to be prepared for this hearing and have all the data you‘ve collected about similar homes and sales of similar homes in Knox County.
Be prepared for the tax assessor to argue his/her counter-argument. Among the most popular ones here is that your home in concern 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 elaborating on the facts to support their case. It’s is always essential to keep in mind that there are no additional charges attached to submitting an appeal; the worst result being that your property assessed value is the same.
Is it worth submitting an appeal?
If you genuinely feel that your home has been misestimated, an effective appeal of your Knox County home assessment could lead to substantial cost savings. If there are only a few hundred dollars of possible cost savings, it might not be worth your time. You also need to consider that the hearing could be set up during a workday, which might 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 minimize wage loss.
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.