Property tax in the USA is the biggest source of revenue for local governments like counties, school districts and cities. States specify the maximum rate on the market value of the property as the legal standard for the assessors of the local administration to follow. The assessors then determine the taxable value. Therefore, you’ll find varied differences in property taxes among different states.

Over the last few years starting from 2006, the rates of property tax in the USA have increased considerably with some states exceeding 5%. As such, property taxes have become the second largest expense, second only to mortgages.

Check whether you’re paying the right amount of taxes

Property tax in the USA is largely based on the rising home values. There are different methods to figure out property taxes like using of home’s actual market value or using a percentage of a property’s worth. Whatever be the value, it’s always multiplied by the local tax rate to compute the property’s bill. As a result, homeowners pay more than the actual property tax on their property even though the tax rate remains the same.

Thus, it is advisable to check whether they’re paying the correct property taxes before the tax payment. A study suggests that almost 60% of the residents are paying more property tax in the USA than what they should pay. Let’s check out how you can protest against over-assessment of your property –

• Appeal against the assessment: You can appeal against the assessment process in a court either by yourself or by hiring an attorney. An attorney will generally do the work for you in exchange of some fees.
• Know the process before you appeal: If you want to appeal all by yourself, you should have the knowledge about the process before you proceed. The appeal process is different in different states. You should know about the deadline of requesting an appeal and what documents and information to be submitted to the court.
• Grounds on which assessment can be appealed: You should have the knowledge of the factors on which you can appeal against the assessment. Usually, appeals can be made on these 2 grounds –

1. An assessment at a higher rate than comparable homes.
2. A mistake in the assessment of the house.

• Check for mistakes in the assessment report: Study the assessment report of your house minutely. The assessor can make mistakes while assessing your house. Check out the following things in the assessment report –

1. The correct inhabitable square-footage of your house.
2. The exact number of living rooms you’ve in your house.
3. The inclusion of property changes that can decrease the value of your home.

Once you’ve the data and the evidences, put them in order and submit to the court. If you know the procedure and have all the information required to appeal, you’ll succeed in the process. A reassessment of your property will take place and you’ll be rewarded with the correct property tax that needs to be paid.