Not happy with your property tax bill? Who is?
No wonder arguing or grieving to lower one’s property tax liability is becoming fairly commonplace. Last year, the Town of Southampton saw some 2,000 appeal cases, according to Sole Assessor Edward Deyermond.
The good news is that the property owners won roughly half of them, meaning they had their property tax bill reduced by various amounts.
If you believe that your property is assessed at a higher percentage of value than the average of all other properties on the same assessment roll, you may claim an “unequal assessment.” Other types of assessments such as “misclassification” or “unlawful” assessments can reduce one’s bill as well, but they won’t be covered in this column.
What do you need to do in order to get your tax bill reduced? There are no hard and fast rules regarding this procedure, but there are some basic steps you should first take to determine if you’re paying what you should, whether your assessment is accurate and what to do if it’s not or if you have any questions.
After taxpayers receive a notice of their new assessment, they have a small window of opportunity to appeal the value—roughly three weeks. They can send in documentation for a lower value or request a hearing at which they can then argue their case.
Should you determine that your assessment is inaccurate, the first step is to seriously compare what similar homeowners in town are paying. After taking a quick look around the neighborhood, you may discover that for some reason you’re actually paying less than your neighbors with comparable homes and lot sizes. If that’s the case, quietly relish in your good fortune and don’t make waves. If, however, you’re convinced you are paying too much in property taxes, the first step is to carefully examine your home. What’s your lot size? How old is the home? What’s unique (good or bad) about your location? Are you on a quiet cul-de-sac or does your China shake with each passing of the Long Island Rail Road? What about amenities? Do you have a two-car garage, tennis court or in-ground pool? Each of these will add to one’s tax bill.
On the other hand, maybe you have not done much to upgrade your home in the time you’ve owned it, but have seen your property tax bill rise.
Basing your claim solely on your tax bill is usually not enough. The condition of the home and lot is a consideration. Maybe you live off a dirt road or your lot borders a commercial property such as a farm or golf course. If any of these describe your situation and you were recently “assessed up,” to the point where you are paying as much or more than your neighbors with comparable or greater homes, then you may stand a good shot at receiving a reduction.
The next step is to document your case as thoroughly as possible with tax records, a thorough description of your property and photographs. The amount of land you own, the school district, the assessed value and property tax bill are key data. Also note what comparable lots and homes in your town are being taxed. You can get that information at Town Hall or on the town’s website listed at the end of this article.
For what type of property are you grieving? While our focus here is residential, vacant land, farm, industrial, residential or commercial property can also be grieved if the owner feels such action is warranted. There’s also a list of exemptions such as the STAR program, as well as exemptions for volunteer firefighters, disabled persons, clergy and first-time home buyers.
When discussing capital improvements to residential property (i.e., inground pool) you’ll need to provide a thorough description of the property under review with particular mention of the added improvements in question. Be prepared to supply such information as the date and price of property at time of purchase, whether or not it’s recently been appraised and by whom plus a description of buildings that have been added, renovated/removed including construction/demolition/removal costs. Photographs and receipts are critical.
Local real estate agents and brokers may be helpful in determining your property’s market value. A professional appraisal of your property can cost $100 to $500, but can be worth it if it helps you win your case. For example, if you prove the value of your property is $60,000, an assessment of $45,000 would show that your property is assessed at 75 percent of market value. If you prove that all other property on the average is assessed at 50 percent, you may claim a $30,000 reduction of your assessment. Once you’re armed with this information, you may still want to visit the assessor’s office before officially filing a grievance.
“Property owners can come in and meet with the staff to discuss their situations,” said Mr. Deyermond, who recommends homeowners find similar properties to review and compare. You may be told that you have a reasonable chance of having your taxes reduced or may learn that, comparatively speaking, you already have a pretty good deal.
“Everybody has a right to question the assessment and then appeal the assessed value,” said Joe Russo, author of “Selling Your House/Condo in this Housing Emergency of 2008” and a certified New York State general real estate appraiser who’s provided expert testimony for the Justice Department.
If you decide to proceed, a grieving application will need to be completed. You can get one at Town Hall or from the town’s website. On the website, you’ll also find filing instructions and information on what you will need to supply, who may complain, what assessment may be reviewed and where and when your complaint must be filed as well as the “complaint procedure.” The website also notes exemptions plus the assessment roll, which contains a list of villages and the Suffolk County tax map.
While lots of property owners use an attorney or “grievance specialist” to make their case, about 40 percent represent themselves, said Mr. Deyermond. “The do-it-yourselfers are about as successful as the pros,” he said.
“To be successful, a face-to-face hearing is better,” Mr. Russo advised. “Bring an appraisal complete with all data and photographs. One page reports are usually not sufficient and be aware that the taxing authority must also reveal how it came up with their value.”
While it may appear to be complicated and intimidating, grieving is a relatively simple procedure and if there is no agreement, sometimes a compromise can be worked out on the spot, according to Mr. Russo. In Southampton, and across Suffolk County, the Town Board of Assessment Review meets on the third Tuesday in May, although there can be exceptions. Be prepared to wait for an answer as the town will inform property owners of the outcome by letter.
Joseph Finora Jr. is a freelance business writer: jfinora@optonline.net.
27east on Jul 23, 2008