What to Do When Your Property Tax Bill Increases

If you have a higher bill than expected, consider following these expert-backed strategies.

By Geoff WilliamsApril 27, 2018, at 4:30 p.m.

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Property tax bills can increase for a variety of reasons. Your local, state or federal government laws may change, causing property taxes to spike. The value of your neighborhood could rise, a sign of the real estate market starting to recover. Or, once your county reassesses the value of the land in your area, you could see an uptick in your property taxes.

The average tax bill in 2017 was $3,400, 3 percent higher than 2016, according to a recent report from Attom Data Solutions, a property data company. What's more, the recent tax cuts from Congress are expected to cause property tax bills to climb in many metropolitan areas.

Fortunately, homeowners have a few options to trim costs – or file an appeal – if their property tax bill increases. Read on to learn how to deal with higher property taxes.

Don't procrastinate. Depending on where you live, you may not have much time (think: two weeks to a few months) to contest a higher property tax bill. To file an appeal, you'll need to fill out legal paperwork from your county and evaluate the value of comparable homes in your neighborhood.

"Every state has a different procedure and timeline for appealing property tax assessments. It's important to be aware of the procedure and follow the timeline, or your appeal will be barred," says Bruce Ailion, an attorney and realtor with Re/Max Town and Country in Atlanta.

In Georgia, a homeowner typically has 120 days to appeal an assessment of your property, Ailion says.

"The county can accept, reject or propose a different value. Typically, the county rejects your value and schedules a hearing before a board of adjustment," he says. A board of adjustment has the power to make important zoning decisions. If you do not have a board of adjustment in your district, your county seat will have some sort of assessor's office, where property values are determined.

"In Georgia, you will present your case, and the assessor will present their case to an impartial panel of citizens. They will determine the value of the property. If you are still unhappy with the value, you can file suit and have a judge decide," Ailion explains.

Do your homework. While you may contend that your property values have been improperly raised, you need to offer up some reasoning behind your appeal.

"You can also go about researching your neighbors and your town by looking at similar homes. Many times, info regarding other assessments is public knowledge, so it's important to compare other residences with yours," says David Hryck, a New York City-based tax lawyer and partner at Reed Smith, a global law firm.

"There is a chance you could find a discrepancy, which could help lower your property tax rate. If you do [find a discrepancy], bring this info to your assessor's attention and you may qualify for a reassessment," Hryck says.

Ralph DiBugnara, president of HomeQualified.com, an online guide for homebuyers, and vice president of Residential Home Funding, a mortgage lender, who's based in New York City, echoes similar advice.

"All tax assessments are of public record and are easily available on sites such as Zillow.com," DiBugnara says.

Make sure to be accurate, Ailion stresses. "The assessor will be prepared," he says. "They will have photos of your home showing it in its best condition." He quips, "I almost think they are photoshopped."

Seek help from a property tax abatement or exemption program. Levar Haffoney, a financial planner and principal at Fayohne Advisors in New York City, suggests giving either a shot.

"Your city, town or county may offer tax abatement and exemption programs to help you reduce your property taxes. Abatements help property owners reduce or eliminate property tax increases on new construction, rehabilitation or other improvements. Exemptions help property owners reduce the taxable portion of your property assessment," he says. For instance, some cities offer exemptions for disabled homeowners and others for veterans.

You might also get what's often called a homestead exemption, where your property taxes won't go up if your spouse has died and was the main breadwinner.

Get an appraisal. "The home appraisal will also show values of neighboring homes and their current property taxes," DiBugnara says.

A typical home appraisal, according to Angie's List and HomeAdvisor.com, is about $300, but expect to pay hundreds more, particularly if your house is in a major metropolitan area or if your home is especially spacious.

Consider hiring a third party to represent you. You could find a property tax services company to make your appeal for you or hire someone such as a realtor or an attorney who specializes in property tax appeals. As for pricing, it's hard to predict how much a third party will cost you. While some companies will charge a flat fee of $300 or $500, others will take a percentage of what you save in property taxes.

For example, Ailion will sometimes file an appeal for clients for a $75 fee and receive 30 percent of the savings on a residential home. "That's a little lower than the firms that only do tax appeals," he says. "I'll review anyone's property and tell them if they stand a good chance or not of winning."

When your house is being assessed, work directly with the assessor, Hryck says. This isn't the time to tell him or her to check out your house while you're at work. "Don't let them inspect your property without you being present," he says. "This will ensure that they don't overlook anything such as outdated appliances, which could lower your rate. It's on you to point out the good as well as the bad parts of your property."

And if you're going to go through the trouble of appealing your property taxes, follow through. "Over 50 percent of the appeals filed by owners result in no-shows by the owner," Ailion says.