Monday, February 12, 2007

Submitting a Tax Abatement

So last week we turned in an abatement of our property taxes. That means we are challenging what the assessed value of our home is. We just feel that it's assessed extremely high comparated to other homes in the area. Part of the problem is that when you purchase a house where we live, often times the taxes haven't kept pace with the sales prices.

So someone who lives in their home for 10-15 years is paying substantially less taxes than someone who just bought. Because the assessor at that point comes out and reassess the home. Our neighbors with single family homes instead of our condos, and are larger with a private yard, are assessed for less money than our condo. Is there homes in poor condition? Nope. And are they larger? Yes.

But the problem is the assessed value of their homes have gone up since they purchased it 10 years ago 3% a year, when prices have actually skyrocketed for 20-30% a year since 1998. So how is that fair?

When I questioned the assessor's office, their answer it's not. But they are underworked and unable to properly boost the assessed value of homes that have been lived in for years. Rather it's easier to reassess newly purchased homes. Thus it's worthwhile filing and abatement to have your assessed value matched up to your neighbors. And that's what we did. I expect an answer within the month.

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