Overtaxation can occur after your property’s value is assessed. This is not an unusual occurrence. Many people are unaware that their properties are being overvalued or how to calculate tax based on the value of their property. So, what should you do if your property’s assessment tax was incorrectly calculated?
This is where a property tax assessment appeal letter can help. If you believe that a tax assessment on your property was made incorrectly, an appeal letter will help you in resolving the issue.
In this blog, we will learn more about what a property tax appeal letter is, why you should write one, and an example and template to help you draft your own.
What is an Appeal Letter for Property Tax?
A property tax appeal letter is a letter you send if you believe your property assessment for tax purposes was incorrectly completed. Your appeal should be made in writing, and copies should be kept so that your case is not ignored or disputed.
If you own property, you may have encountered this issue several times, but you may not have known how to appeal or that your tax bill had increased. Unknowingly, assessors make mistakes that result in over-taxation of your property. Knowing how to calculate property tax is essential if you want to solve this issue.
Reasons Why you Should Send an Appeal Letter for Property Tax
Here are some reasons why you should create and send an appeal letter for property tax:
- Your valuation includes the value of business personal property that you no longer own.
- Someone else’s assets or real estate are included in your valuation.
- The same property was valued twice by the assessor.
- Your assets were under-depreciated by the assessor.
- The property information on the property record is incorrect.
- Your real estate valuation is out of line with comparable properties in the same jurisdiction.
- When compared to the previous year, the value of your real estate increased more than is reasonable (or legal).
What to Consider in Writing an Appeal Letter for Property Tax
Before sending a property tax appeal letter, consider the following steps:
- The lot size, square footage, number of rooms, and date of construction should all be correct on the property tax bill.
- When requesting a tax exemption, the listed tax exemption must be mentioned.
- It is necessary to investigate the property values from recent sales in the area.
- The sales figures should be compared to the homeowner’s assessment, and if there is a significant difference, it should be noted when requesting a reassessment.
- If the two appraisals differ significantly, it is a good idea to contest. Some people will argue if the difference is only a few thousand dollars.
Sample and Template
We provide an example and template of an appeal letter for property tax to help you write your own letter.
Appeal Letter for Property Tax Template
Here is a template of an property tax appeal letter:
Dear [Recipient’s name],
My name is [name], and I’m writing to appeal a property assessment that the tax assessor’s office recently mailed to me. My belief is that my home was over-assessed, and I have provided documentation to back this up.
There are some inconsistencies between the property records I received from your office and what I currently have in my home. Your record indicates that I have a $2,500 hot tub on my deck; however, I do not have a hot tub. Furthermore, the record you sent me indicates that I have a three-car garage, but I only have a two-car garage.
Finally, you list my living space as 2,800 square feet when it is actually 2,200 square feet. The difference in square footage is worth $8,300, according to your calculations. Due to these discrepancies, I am requesting that you reduce my property tax assessment by $12,000 dollars.
Furthermore, I request that you take into account some structural flaws in my home that were overlooked during your office’s assessment. My house’s foundation has developed a crack, reducing its value by $5,500. On my street, there is at least one house that is comparable to mine but was assessed at a lower value.
Please reconsider my property tax assessment and, as a result, lower the amount of property taxes I must pay this year. Your consideration and time are greatly appreciated.
Appeal Letter for Property Tax Example
Here is an example of appeal letter for property:
January 25, 2020
Tax Assessment Manager
Department of Taxes
Subject: Tax Assessment Appeal
Dear Mr. Harry Weste,
Your department recently conducted a tax assessment on my firm on January 17, 2020. According to the report I received on January 21, 2020, there was an error in tax assessment, and I would like to appeal the assessment.
According to the report, the total value of my assessments is $90000. However, the correct amount is $76899. Also, I do not own the building where my firm is located, and I pay a $400 monthly rent, which is not mentioned in the report. Because of these differences, the tax I must pay is much higher than the true amount I should pay. I have enclosed all supporting documentation for this claim. I request that the assessment be re-evaluated and the necessary changes made.
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- A Property Tax Appeal Letter is a letter that you send if you suspect your property assessment for tax purposes was improperly executed.
- It is necessary to research property values based on current sales in the area.
- When requesting a reassessment, the total sales should be compared to the homeowner’s assessment, and if there is a large gap, this should be noted.
- If the two assessments are significantly different, it is a good idea to contest. If the difference is only a few thousand dollars, some will argue.