The question of taxes, and assessments often comes up with buyers when they are searching for a home. There are many questions about it. I recently attended a working lunch panel on tax assessments and how to grieve taxes. I learned some great information, and I thought I would break it down into some easy Q&A bullet points.
What is the difference between assessment and actual value?
An assessed value is the valuation placed on a property by a public tax assessor for purposes of taxation. Fair Market Value on the other hand is the agreed upon price between a willing and informed buyer and seller under usual and ordinary circumstances.
Is a house reassessed once a sale goes through?
A house cannot be reassessed just because of a sale. It is against the law to do that. The only exception would be if a house was purchased and “flipped” and had significant improvements.
What if a homeowner disagrees with their assessed value on their home?
A homeowner can file a grievance if they disagree with their assessed value. However, the burden of proof is on the homeowner. Homeowners need to be prepared with comps and a reason why their think their assessed value is incorrect. Homeowners need to file their grievance claim by the first Tuesday in May and then appear in front of the board on the 4th Tuesday of May.
When is Grievance Day?
You can file a grievance beginning on the first Tuesday in May, and then the process to appeal your case is on 4th Tuesday in May. Use the links below to find your procedure on how to grieve your taxes in your town.
What if I miss the deadline?
The deadlines for filing a grievance are hard deadlines. If you don’t get your grievance in by Grievance Day, we’ve missed your chance for the year and will not be able to grieve your taxes until the following year.
When I file a grievance, what am I really challenging: the taxes or the assessment?
When you file a grievance, you are simply challenging the Assessor’s calculation of the market value of your property. You are not challenging the amount of the property taxes that you will pay. If you are successful getting a re-assessment of the market value, the reduction in market value will thereby reduce your assessed value. And because your property taxes are based on your assessment, the reduction in the assessment will ultimately lower your taxes. You won’t know your actual property tax amount until a few months after Grievance Day.
Can taxes go up if a grievance is filed?
No. By law, the assessor cannot raise your assessment because you filed a grievance. Your assessment can only go down or remain the same.
Can a homeowner grieve taxes that I already paid? Will a reduction be retroactive to earlier year?
No. The grievance process only applies to the current tax year and/or future years.
Can I file a grievance if I previously filed one?
If you did not file a grievance last year, you can file this year. If you filed last year and were not successful, you can file this year. But if you filed last year and were successful in reducing your assessment, you cannot file this year.
Does a homeowner have to let an assessor into his home?
By law, a homeowner does not have to let an assessor in. However, the assessor will have to make assumptions on the property, and those assumptions could be incorrect. It is better to let them in so they have the correct information.
What happens if you grieve your taxes and nothing changes?
A homeowner can file a Small Claims Assessment Review (SCAR). The Small Claims Assessment Review is a procedure that provides property owners with an opportunity to challenge the assessment on their real property as determined by the Board of Assessment Review It is a less costly and more informal alternative to a formal Tax Certiorari proceeding, which can be time consuming and expensive. Information on how to file a SCAR, can be found here.