How to fight a property tax bill

Many homeowners have seen their property values shoot up as the pandemic sparked a frenzied housing market.Home prices logged a 19.1% annual gain nationwide in October, with even larger returns in fast-growing cities, including Phoenix (32.3%), Tampa (28.1%) and Miami

(25.7%), according to the S&P CoreLogic Case-Shiller National Home Price Index.

As home prices climb, property taxes follow suit. Your tax bill is determined by multiplying your home’s assessed value by the local tax rate.

The average tax bill on a U.S. single-family home was $3,719 in 2020, up 4.4% from

2019, according to Attom Data Solutions.

Homeowners will see higher taxes in

2022 and beyond as localities reassess property values, although the pain should ease as price appreciation slows. Kiplinger expects housing demand to cool, with home prices lifting by 3% in 2022. And keep in mind that local tax rates affect your bill, too. If your municipality lowers rates to provide relief or stay within required levels, your bill may fall or show only a modest increase.

When you get your assessment, carefully review it. Check how your home’s value is calculated for tax purposes. Some localities multiply a home’s market value by a specified percentage to determine assessed value. For example, if your home is worth

$400,000 and the assessment ratio is 25%, the assessed value is $100,000.

If your home’s estimated value seems to be too high, you may be able to appeal the assessment. Start by checking the data that your assessor has on file about your property. You can often find the records on your locality’s website, but in some jurisdictions you may have to go to the assessor’s office to view property cards or request to receive the information by email or fax, said Greg McHenry, president of the International Association of Assessing Officers.

Ensure that details such as your home’s age, square footage and number of bedrooms and bathrooms are accurate. Look up other homes in your neighborhood with similar characteristics or ask your assessor for the list of the properties that it used to help determine your home’s estimated value. If the comparable homes have lower estimated values than yours, that bolsters your appeal. Search in your area for recent sale prices of homes similar to yours on a website such as Zillow.com or Realtor.com.

Your assessment notice should explain the appeal process and the deadline for submission. Often, an informal meeting with your assessor’s office is the first step. For a straightforward fix — say, your property record lists four bedrooms, but your home has only three — you may get a correction on the spot.

Otherwise, the next move may be to present your case to a local board.

Check for tax breaks. Make sure that your tax bill reflects any breaks owed to you. Homestead exemptions, for example, shield a certain amount of a home’s value from tax and are available in most states. Other tax breaks come in the form of freezes or deferrals.