Charleston SC Real Estate Blog - Charleston SC Real Estate: Property Taxes

Make Your Case for a Property Tax Reduction

Sat, 26 Dec 2009 07:00:00 -0400

To successfully challenge a real estate assessment and lower your property tax bill, you need to do a bit of sleuthing first.

Owning a home is an expensive proposition. There's maintenance, landscaping, utilities, renovations, and, of course, taxes. It's your civic duty to pay the latter, but it's also your right not to yield a penny more than your fair share. To successfully challenge a real estate assessment and lower your property tax bill, you need to do a bit of sleuthing first.

It's possible to trim your property taxes by challenging the assessed value of your home. But making a convincing case against your real estate assessment, the basis for your property tax, requires doing a bit of homework first. Initial research can be done online or by phone over two or three days, but the process can stretch out for months if you're forced to file a formal appeal.

Read your assessment letter

A real estate assessment is conducted periodically by the local government to assign a value to your home for taxation purposes. An assessment isn't the same as a private appraisal, and the assessed value of your home isn't necessarily how much you could sell it for today. Real estate assessment letters are mailed to homeowners annually, or perhaps every two to three years, depending where you live.

The letter will include some information about your property, such as lot size or a legal description, as well as the assessed value of your house and land. Additional details-number of bedrooms, for example, or date of construction-can often be found in the property listing on your local government's website. Your property tax bill will usually be calculated by multiplying your home's assessed value by the local tax rate, which can vary from town to town.

If you think your home's assessment is higher than it should be, challenge it immediately. The clock starts ticking as soon as the letter goes out. You generally have less than 30 days to respond, though the time frame varies not just between states, but within each state. Procedures are often outlined on the back of the letter.

Gather evidence

Start by making sure the assessment letter doesn't contain any mistakes. Is the number of bathrooms accurate? Number of fireplaces? How about the size of the lot? There's a big difference between "0.3 acres" and "3.0 acres." If any facts are wrong, then you may have a quick and easy challenge on your hands.

Next, research your home's value. Ask a real estate agent to find three to five comparable properties-"comps" in real estate jargon-that have sold recently. Alternatively, check a website like Zillow.com (http://www.zillow.com/) to find approximate values of comparable properties. The key is identifying properties that are very similar to your own in terms of size, style, condition, and location. If you're willing to shell out between $350 and $600, you can hire a private appraiser to do the heavy lifting.

Once you identify comps, check the assessments on those properties. Most local governments maintain public databases. If yours doesn't, seek help from an agent or ask neighbors to share tax information. If the assessments on your comps are lower, you can argue yours is too high. Even if the assessments are similar, if you can show that the "comparable" properties aren't truly comparable, you may have a case for relief based on equity. Maybe your neighbor added an addition while you were still struggling to clean up storm damage. In that case, the properties are no longer equitable.

Present your case

Once you're armed with your research, call your local assessor's office. Most assessors are willing to discuss your assessment informally by phone. If not, or if you aren't satisfied with the explanation, request a formal review. Pay attention to deadlines and procedures. There's probably a form to fill out and specific instructions for supporting evidence. A typical review, which usually doesn't require you to appear in person, can take anywhere from one to three months. Expect to receive a decision in writing.

If the review is unsuccessful, you can usually appeal the decision to an independent board, with or without the help of a lawyer. You may have to pay a modest filing fee, perhaps $10 to $25. If you end up before an appeals board, your challenge could stretch as long as a year, especially in large jurisdictions that have a high number of appeals. But homeowners do triumph. According to Guy Griscom, Assistant Chief Appraiser of the Harris County (Texas) Central Appraisal District, of the 288,800 protests filed in his Houston-area district in 2008, about 58% received reduced assessments.

How much effort you decide to put into a challenge depends on the stakes. The annual U.S. median property tax (http://www.taxfoundation.org/taxdata/show/1888.html) paid in 2008 was $1,897, or 0.96% of the median home value of $197,600. Lowering that assessed value by 15% would net savings of about $285. In some parts of New York and Texas, for example, where tax rates can approach 3% of a home's value, potential savings are greater. Ditto for communities with home prices well above the U.S. median.

There are a few things to keep in mind as you weigh an appeal. The board can only lower your real estate assessment, not the rate at which you're taxed. There's also a chance, albeit slight, that your assessment could be raised, thus increasing your property taxes. A reduction in your assessment right before you put your house on the market could hurt the sale price. An easier route to savings might lie in determining if you qualify for property tax exemptions (http://www.houselogic.com/articles/common-property-tax-exemptions/) based on age, disability, military service, or other factors.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.

Barbara Eisner Bayer has written about mortgages and personal finance for the past 15 years for Motley Fool, the Daily Plan-It, and Nurse Village, and is the former Managing Editor of Mortgageloan.com and Credit-land.com. She has successfully challenged her real estate assessment.

As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions.

To look for homes anywhere in the tri-county area go to my website at http://www.carolinajoe.com/mls/

View my entire inventory of VisualTours at http://www.visualtour.com/inventory.asp?U=182210

Sincerely,

"Carolina Joe" Idleman
http://www.carolinajoe.com

Article from HouseLogic.com

Cut your Charleston SC County Property Taxes!

Sat, 24 Oct 2009 07:08:00 -0400

Do you own and reside in your home?

1. If you are over 65 years of age, or certified totally and permanently disabled or blind, you may qualify for the Homestead Exemption. Up to the first $50,000 of your home's appraised value could be totally exempt from taxes. Call (843) 958-4220 for further information.

2. If your home qualifies as your primary residence, contact the Assessor's office at (843) 958-4100 to apply for the four percent Primary Residence assessment ratio if your property is not already classified as QR-Qualified Residential. Also, the agricultural farmland use assessment is determined by the Assessor's Office.

3. Homeowners who have qualified for the four percent Primary Residence assessment are automatically eligible for state Property Tax Relief. No application is necessary.

4. If you are a military veteran who is totally disabled from a service-related cause, the surviving spouse of a military person who was killed in the line of duty or totally disabled from a service-related cause, you may be qualified for exemption from property taxes on a house and up to one acre of land on which the house is located. Application should be made through the S.C. Department of Revenue (DOR). There is a local DOR Service Center at 3 Southpark Center, Suite 202, next to Citadel Mall (Phone: 843-852-3600).

5. If you are a paraplegic or hemiplegic, or their surviving spouse, you may be qualified for exemption from property taxes on a house and up to one acre of land on which the house is located. Application should be made through the S.C. Department of Revenue. There is a local DOR Service Center at 3 Southpark Center, Suite 202, next to Citadel Mall (Phone: 843-852-3600).

As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions. To look for homes anywhere in the tri-county area go to my website at http://www.carolinajoe.com/mls/

Sincerely,

"Carolina Joe" Idleman
http://www.carolinajoe.com

Appealing Charleston County, South Carolina Real Property Taxes

Thu, 15 Oct 2009 06:55:00 -0400

If, after receiving your tax statement, you disagree or have questions concerning the new value assigned your property, you have the right to appeal.

You have until January 15th to submit a signed Letter of Objection to the County Assessor’s Office stating why you believe the assessed value is incorrect. Note that electronic submissions of appeals and/or applications are not allowed, nor are faxed submittals acceptable. All the applications require an original signature. Therefore the original must be sent in or delivered.

The Assessor will review your letter and take one of the following actions:

1. If your letter contains enough information regarding your appeal, such as owner’s opinion of value and evidence to support that value, the Assessor’s Office will review the appraisal of your property in light of the information provided in the letter. After the review is complete, the Assessor will notify you of the results via a reassessment notice.

2. If your letter does not contain information sufficient to conduct an appraisal review, the Assessor’s Office will, within 30 days (or as soon as practical), schedule a meeting with you to discuss your concerns. The appraiser will review your property record with you and give you information about the appraisal on your property.
If your concerns cannot be resolved by the Assessor’s Office, you may appeal to the Charleston County Board of Assessment Appeals. If you disagree with the Board’s decision, you can further appeal to the S.C. Administrative Law Judge Division.

To be sure your reassessment is fair and correct, you should verify: that any items that affect market value, such as size, number of baths, etc., are correct; that your property is not appraised more than recent sales of comparable properties; and that your property is equally appraised when compared with like surrounding properties.
Refer to www.charlestoncounty.org for additional information.

Sincerely,

"Carolina Joe" Idleman
http://www.carolinajoe.com

5 Property Tax Questions Buyers Should Ask

Thu, 08 Oct 2009 07:25:00 -0400

1. What is the assessed value of the property? Note that assessed value is generally less than market value. Ask to see a recent copy of the seller’s tax bill to help you determine this information.

2. How often are properties reassessed, and when was the last reassessment done? In general, taxes jump most significantly when a property is reassessed.

3. Will the sale of the property trigger a tax increase? The assessed value of the property may increase based on the amount you pay for the property. And in some areas, such as California, taxes may be frozen until resale.

4. Is the amount of taxes paid comparable to other properties in the area? If not, it might be possible to appeal the tax assessment and lower the rate.

5. Does the current tax bill reflect any special exemptions that I might not qualify for? For example, many tax districts offer reductions to those 65 or over.

To determine South Carolina property taxes by county go to this link:
http://www.sccommerce.com/docdirectory/ResearchFolder/Property%20Tax%20Rates%20by%20County%20in%20South%20Carolina%202008.pdf

As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions.

Sincerely,

"Carolina Joe" Idleman
http://www.carolinajoe.com

How to Save Money on Your South Carolina Property Taxes

Sun, 13 Sep 2009 07:50:00 -0400

1. Homestead tax exemption program is for home owners who are age 65, or older, totally disabled, or blind. The program exempts op to $50,000 of the value of the home including up to five acres around the home. The homeowner must have been a legal resident of SC for at least one year as of December 31st of the year prior to the exemption and the property must have the primary residence assessment rate of 4%. To claim the exemption the homeowner must file an application with the County auditor.

2. The multiple lot discount is for undeveloped acreage that has been subdivided in to ten or more lots and the conditional or final plat was recorded at the County on or before December 31st. The owner must file a written application with the Assessor by May 1st of the year requesting the discount.

3. Requesting agricultural zoning on a tract of real property as of January 1st of the current year and it was used to “raise crops, harvest crops, feed, breed, or manage livestock, or to produce plants, trees, fowl, or animals useful to man” may qualify for a discount in the appraisal/assessment. There are no residency requirements. An application must be filed before the first penalty date for taxes due.

4. Owner-occupied residences that are your legal residence are eligible to file for a special assessment ratio that will reduce your taxes. An application must be applied for before the first penalty due for taxes.

As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions.

“Carolina Joe”