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Purchased price lower than county tax appraisal

Posted on: 16th Apr, 2010 04:25 am
Hi there... hope if anyone can help me. I purchased a house few months back for $180K. Then we contacted the County Tax Office and requested them to transfer the property in our names. Well... the property has been transferred to our names today and I was quite happy. However, I was quite surprised to find that the appraisal of our property is shown at $190K. This is not true as I purchased my property for $180K. Can I protest this at the County Tax office and show them our purchased price? Also, please see that the tax value of this property was $172K the last two years.
as a general rule, you will have a right to protest a tax office's assessment of the value of your home. you may be limited by time, however, as most municipalities, counties, etc. specify a period during which they'll accept appeals.

also, you need to keep in mind that their value was done at a particular point in time, and revaluation is only done every so-many years; so don't expect to be successful in your protest.

it's still worth your trouble to give them all the documentation you can, however.
Posted on: 17th Apr, 2010 12:20 pm
Depending on the millage rates, the difference in taxes may be very small, probably less than $100. It may be worth your time to go to the tax assessors office and explain your position since some assessors are willing to give it another look and re-evaluate the assessment. However, for me anyway, it is well worth the extra $100 not to have to deal with board of equalization.
Posted on: 19th Apr, 2010 07:24 pm
locally, and of course everywhere else in this era of declining values, we've had the first go-round of frustrated homeowners bringing their cases to the assessor's office. what's being said is that the assessed values they're seeing (we are seeing) were based on values from 2007 and that the current market may or may not be similar, but that there's naught to be done about it. revaluation here occurs on a 10 year cycle, so the next one will be 2017.

i will recall that in 1996 i bought a condo (bank-owned) for $30000. that was a steal overall, but it was market-warranted at the time. my tax bill that year and for the first couple of years was about $3600 a year (crazy!). after reassessment, my tax bill was reduced to something like $700 a year. this, after the market had already turned and the condo was worth quite a bit more (not a huge amount though). by the time i sold it in 2006, my sales price was $175000, and the taxes hadn't changed other than a little bit due to mill rate increases...maybe to $850 or so - don't remember quite well enough.

but that's how these markets go....up and down, up and down...the taxes go with the market values. i don't think there's much hope arguing with assessed values in this climate, frankly; though i would certainly not tell people not to bother with it, either.
Posted on: 19th Apr, 2010 09:48 pm
By the purchase price or the appraised value, whichever is higher?

In this case the fair market value of the home was $190, not the $180 you purchased it for (lucky you, you bought it at a discount).
Posted on: 20th Apr, 2010 06:15 pm
Manny, the poster is protesting that the $190K value was established long before the current market downturn, and that the newer value, as shown by this purchase price, ought to be the new assessed value. It's not a winning argument, I'm afraid, but it's sensible to ask about, and worth stating one's case with the taxing authority.
Posted on: 21st Apr, 2010 08:18 am
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