Property Tax Attorney

Contact a property tax attorney if you are delinquent in your property tax payments.  You do not want to ignore this issue, you can end up risking your property or home.  Property tax attorneys can assist you with getting back on track with your taxes and even assist in winning an appeal for a reduction in property taxes if the value of your home has decreased.  You need to get rid of the stress of this tax debt and move on with your financial future.

If you have properties subject to property tax, then you are compelled to pay for it. However, tax is not your only concern here. There are other finances you have to pay. The most basic expenditures must come first in the budget such as the basics. In that case, you’ll end up with delinquent property taxes. The bad thing about not paying is the chance of forfeiture or the worst, foreclosure of your property.
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A property tax attorney can be an amazing investment in ensuring that you are not overpaying your property taxes.  Why?

Recent values of property and homes have plummeted in some areas across the US, losing an incredible amount of value.  Your property taxes need to reflect that revised value.  When property values are on the rise, does the tax man wait to collect those additional taxes?!  However, when those property values are on the way down, the tax man does not act as quickly to revise your taxes down!

This is where a property tax attorney can assist you, make sure that the assessed value of your property and or home is accurate and assist you in making the appeal to lower your property taxes accordingly.  I recently had a shocking conversation with someone who is a small business owner and very smart, savvy person.  She and her spouse had not yet appealed nor revised their property taxes.  Why?  They simply did not truly understand that they have the power to do so, that knowledge is indeed power, and that getting that reduction could save them a great deal of money over the years until the real estate market makes its much needed turn around.

Most state and local governments are claiming a budget crisis, but a look at tax collection revenues show that they’re certainly not suffering from a lack of financial resources. Examining public records, we find that tax collections are still on the rise. While most of us believe we can’t do much to avoid paying fewer tax dollars, save for cutting out trips to the mall or moving our families to offshore tax havens, there is still the likelihood of reducing our property taxes. In fact, while home values have been falling nationwide, state and local governments are still billing most of us for home values that far exceed realistic market prices. Here’s a look at property tax collections according to the U.S. Census Bureau, and information on how you can exercise your right for a fair property valuation, saving you hundreds or potentially thousands of dollars each year.
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If you are making upgrades to your hojme, rental property, condo, or other property you own, you should contact a property tax attorney to see if you should apply for a property tax abatement.  A property tax abatement is an arrangement in which your property taxes are lowered, even though you are making those improvements.    A property tax abatement is basically an incentive to revitalize communities, and with the number of investors and home owners alike scooping up depressed foreclosures, you may qualify for such an abatement if you are making improvements to that property.

You may have heard the term ‘property tax abatement’ and wonder what it’s all about. Basically, to abate something means to reduce (or eliminate) it. So property tax abatement is a short-term or long-term arrangement in which your property taxes are lowered despite your making improvements to the home. Under normal circumstances, when you increase the value of your home, you also raise the taxable value. With abatement, this increase does not occur (or at least not as much). Usually, a waiver is issued as an incentive to encourage town revitalization.

Property tax abatement is offered to owners of homes, condos, duplexes, multiplexes, apartment buildings, and commercial buildings being converted to residential homes. To qualify, the value of your home must be at least 115% of its value prior to remodeling. Abatement isn’t something you will automatically receive. To earn it, you must apply for it. The first step is to contact your local court house, municipality, or town hall and ask them about it. They will have information available, as well as forms for you to fill out. They may also be able to arrange for an assessor to come out and evaluate the value of your home before and after the updates.

If approved, you will have taxes waived on most of your upgrades. These include roof repair, exterior siding, lawn and garden upgrades, driveway repair, room remodeling, resurfacing, plumbing, and electrical repairs. The only thing it doesn’t cover is the addition of actual rooms, showers, porches, and fireplaces. This reduction will stay in effect for as long as your locality provides. Generally, the tax is raised back from its lower rate to the new rate over a period (for example, 5 years). Your locality can provide you with the details.

Keep in mind that even if you are approved, there is no guarantee your taxes won’t go up. It just means they won’t go as high as they otherwise would. You may still see a raise, especially if you make enhancements to your home not covered in the list of improvements eligible for tax abatement. Still, property tax abatement is a nice way to save some money when upgrading your home or residential building.

Author: Matt Murren

Article Source: http://EzineArticles.com/?expert=Matt_Murren

A property tax attorney can assist you in better understanding a variety of property taxes that can impact your wallet and your bottom line if you own rental properties.  Don’t leave money on the table, a small investment in legal counsel with experienced property tax attorneys may save you far more money over the years, if not decades, of paying property or rental property taxes!

Whether you own one rental property or fifty you should take a hard look at your real estate taxes. And we are not referring to income taxes but rather the rental property taxes. Many people are not aware that you can “appeal” these taxes and save hundreds to thousands of dollars per year, per property (or more).

Of the investors that are aware of the appeal process many assume it would be too cumbersome in both time and research to bother. Others are intimidated by debating their city and would rather stay “under the radar.” Here are a few facts that may make this more interesting for you:

1. It is estimated by industry experts that 65% of all properties are over assessed (both commercial and residential, owner occupied or investment).

2.Less than 2% of all property owner’s appeal their taxes.

3.70% of the 2% that appeal win some type of rental property reduction.

These stats came from the National Tax Payers Union. The first thing to do, is figure out if your city claims that your property is worth more than it actually is. Don’t let the city’s jargon throw you off with all of their various terms (Many people believe they do this on purpose). That is what this is all about, i.e. is your property worth less than what they report it is, and what the tax it off of?

Rental Property Tax - Assessed Value

Every state and city has an assessed value and an assessment ratio. The ratios vary from state to state and often from town to town. Some city assessment ratio equals the actual market value (their opinion of it) with others; it’s a percentage of the market value. A 2 minute call to your city will determine the answer.

In the state of Michigan, for example, the Assessment Ratio is 50% in every jurisdiction. So, if a Michigan city claimed the assessed value of a property is $400,000 that means they think the market value of the property is $800,000 (.5/$400,000).

Say on that same example that we knew three other properties that where similar, that recently sold for $600,000; we would know that the property was being over taxed and would deserve a property tax reduction. The savings on that example would look like this.

$200,000 (over valued amount) x .50 (the assessment ratio of 50%) = $100,000 over assessed

$100,000 x .052 (our local millage rate for rental properties) = $5,200 of annual real estate tax savings.

Note this annual saving normally goes on year after year. And if you really learn what you are doing or hire someone that does, you can show an over payment in previous years and potentially qualify for a rebate. For example if you can prove that you over paid $5,000 per year for five years you would technically be owed $25,000 from your city. Also, note that the annual tax savings has an interesting affect on your net operating income, and actually theatrically increases your properties value by getting the reduction on the rental property tax. It’s found money.

Author: Jeff Rauth

Article Source: http://EzineArticles.com/?expert=Jeff_Rauth