|
Property taxes are decided collectively by
school boards, town boards, legislators, and councils. The
tax rate is set by collating the amount of funds an area
needs. This is then divided that by the “total taxable”
assessed value of the area. The tax an individual pays is
computed by multiplying the tax rate by the assessed value
of your property and then deducting any applicable
exceptions. Property taxes are at an all time high. Studies
indicate that they have increased more than 35% in five
years. Property is assessed by determining property costs
in any given area. Property is valued by studying: the
current sale price of properties in the area, costs to be
incurred to replace the property, potential realization of
property if it is rented, sold, or gifted, and the
historical value of a property.
There are a few ways in which you could save on taxes:
1. Check if the state you reside in is offering any
rebates. For example, a money back rebate, energy rebate,
capping of taxes, or home owners rebate where under certain
conditions you may be eligible to claim a rebate.
2. Ensure that the property is assessed right. This will
ensure that you do not have to pay excess taxes. Assert your
right to check you assessment report ensure that there are
no miscalculations, mistakes, or assumptions. If in any
doubt, do put in an appeal. According to statistics almost
50% of the cases win some relief.
3. Check all exemptions allowed according to the law.
4. Buy property jointly with a partner or family member.
This way both owners become eligible for tax rebates.
5. Check if your assessment is in according to other
properties in your neighborhood. Check with the assessment
office or with your neighbors themselves. It helps to know
applicable laws. Use the help of a real estate professional
to put together a file of properties similar to yours that
have a lower assessment. Or, use the bank’s appraisal to
support your case. Be sure that the case you gather together
is water tight.
6. Use a property consultant to help you save taxes. Some
charge a flat fee while others just a percentage of what you
save. A professional will check how assessment is done and
also if there are any loop holes you can use.
7. There is strength in numbers. Get together with other
owners who are also checking or fighting assessments. Check
on the National Taxpayers Union Web site
http://www.ntu.org for your rights.
8. Ask you home loan provider whether you are eligible
for refund of property taxes paid. Some agreements have a
provision for this. Many mortgages have automatic escrow of
taxes.
9. Even before you buy a home find out what the property
taxes are in the area and what have been the increases in
tax rates.
10. Be sure to read through assessment and tax manuals
published by your local authorities. These will give a clear
idea of what are the parameters used and what you must do to
reduce or pay the correct property taxes.
In order to be money smart you need to get the help of an
efficient and dedicated accountant, plan your tax
liabilities well, known thoroughly all aspects of
Property
Tax. If you are prudent, you can benefit by using ways and
means to cut your tax burden and liabilities.
Paul Wilson is a freelance writer for
http://www.1888PressRelease.com/Home-and-Family-Taxes-1-81.html,
the premier website to Submit Free Press Release for any
announcements including launching of new product or
services, new website, announcing new hires, sponsoring a
special event or seminar and more. His article profile can
be found at the premier Legal Article Submission Directory
http://www.1888Articles.com/legal-articles-3.html
Article Source:
http://EzineArticles.com/?expert=Paul_W_Wilson |
