Question about taxes on our house

**mateosbaby** · 12-18-2009, 09:10 PM

So, the estimated fair market value is at $138,300. The assessed value is $135,600. This past year, as late as May, we had our house for sale at $119,000, below our nearest comps except for one that was in foreclosure, and it still wouldn't sell. Is it possible for us to dispute this value? Is it even worth it? I hate to pay extra taxes for no good reason, kwim?

**littleplum** · 12-19-2009, 01:05 PM

What is your actual tax rate? How does your assessor calculate fair market value? What are homes in your zip code listed at and actually selling for? Do they have the correct statistics for your home, such as sq footage, garage size, pool, other amenities? How do they calculate our tax rate?

We've requested a correction on our assessment, but mainly because they have us listed as having a finished basement with rec-room (we don't), a single story home (it's 1.5 stories), and a 2 car garage (there has been no garage on this house for over 9 years, possibly longer).

They have our home valued at $196,000, and we paid $162,500 in May. We think once they correct for the garage and the unfinished basement, the value will be correct. The same floor plan one street over with a garage sold for $20K more than we paid, about two months after we closed.

Our tax rate is really complicated. They take our Property Value times 16% then multiply by 2.9786 then multiply by 10% then deduct a homeowner's exemption of $2267. I don't understand why they don't just take 2.9% of our property value. At any rate, the change in value will decrease our property tax by only $275 for the year.

**savvy_sniper** · 12-19-2009, 01:22 PM

I get instructions on how to protest, the deadline, etc. in the mail with the tax bill every year.

**littleplum** · 12-19-2009, 01:30 PM

Don't go in and just say "I think it's too high." The assessor can come back with, "Well, I don't" and then it's done.

here's some tips from TMF:

http://www.fool.com/personal-finance...ssessment.aspx

**mateosbaby** · 12-19-2009, 04:54 PM

Originally Posted by littleplum

What is your actual tax rate? How does your assessor calculate fair market value? What are homes in your zip code listed at and actually selling for? Do they have the correct statistics for your home, such as sq footage, garage size, pool, other amenities? How do they calculate our tax rate?

We've requested a correction on our assessment, but mainly because they have us listed as having a finished basement with rec-room (we don't), a single story home (it's 1.5 stories), and a 2 car garage (there has been no garage on this house for over 9 years, possibly longer).

They have our home valued at $196,000, and we paid $162,500 in May. We think once they correct for the garage and the unfinished basement, the value will be correct. The same floor plan one street over with a garage sold for $20K more than we paid, about two months after we closed.

Our tax rate is really complicated. They take our Property Value times 16% then multiply by 2.9786 then multiply by 10% then deduct a homeowner's exemption of $2267. I don't understand why they don't just take 2.9% of our property value. At any rate, the change in value will decrease our property tax by only $275 for the year.

How do I figure out the tax rate? They have the total assessed value at $135,600, and ave. assmt. ratio at .9804 (don't know what that means), and a net assessed value rate of 24.5945. The total tax is 3335.01. They go through and list all the different taxes to come up with that total. Then they take off a couple of credits, for a total owed of $3,193.43.

They don't tell how to appeal that I can see on this sheet. They just tell you the numbers and tell you how much you owe by what day. They're a very helpful city...

I looked on Realtor.com, and it looks like comparable properties are still all over the board as far as pricing. What they actually sell for is probably different, and since I'll be putting our house up for sale in Jan., I'll know then. But then it's a little late to try protesting the assessed value, kwim?

**monkeywrangler71** · 12-19-2009, 05:45 PM

Are there any comparable properties in your immediate area that have sold recently? Can you look at what your neighbour's assessments are? Normally you would need concrete evidence that you are over assessed, either a similar property nearby assessed lower or having recently sold lower.

Look for something on your bill that says where you can go for more information. You need to see the details of your assessment, not just the result.

**MaryCarney** · 12-19-2009, 07:26 PM

There are two sure topics for local talk-radio shows in Indiana - one for which no show prepe is needed - the show just drives itself. Those topics are property taxes and daylight saving time. (I tell a lie- it's three - class basketball)

**littleplum** · 12-20-2009, 04:36 PM

Originally Posted by mateosbaby

How do I figure out the tax rate? They have the total assessed value at $135,600, and ave. assmt. ratio at .9804 (don't know what that means), and a net assessed value rate of 24.5945. The total tax is 3335.01. They go through and list all the different taxes to come up with that total. Then they take off a couple of credits, for a total owed of $3,193.43.

They don't tell how to appeal that I can see on this sheet. They just tell you the numbers and tell you how much you owe by what day. They're a very helpful city...

I looked on Realtor.com, and it looks like comparable properties are still all over the board as far as pricing. What they actually sell for is probably different, and since I'll be putting our house up for sale in Jan., I'll know then. But then it's a little late to try protesting the assessed value, kwim?

Are you looking at your tax bill or your assessment? In my county, those are two different notices.

**mateosbaby** · 12-20-2009, 08:14 PM

At the top it says "Statement of Real Estate Taxes for 2009" The mailing also includes the coupons to send in your payment.

**McD** · 12-20-2009, 11:50 PM

That's your bill and shows the breakdown of where the taxes go. When your taxes are assessed you will be sent a form showing the assessed value, how they came to that etc.

Does your county/state have an assessor's website? My county has the assessor site where I can go look at the curent assessed value as well as the value over hte past 10 years. I can pull up the documents showing how they came to that total.

If that isn't an option, I'd call your assessor.

**mateosbaby** · 12-21-2009, 12:11 AM

Do you know how often they'd do an actual assessment? We've lived here for more than 5 years now, and I think they may have done it when we first moved in. We found out about some hidden damage in the crawlspace that the previous owner didn't tell us about, so we were able to get the value dropped a bit for that. That was maybe 6 mths or so after we moved in.

I don't think they have that on their website. We're kind of behind the times here... LOL At least they HAVE a website!

**McD** · 12-21-2009, 12:15 AM

Ours are done every two years.

**littleplum** · 12-24-2009, 08:04 PM

Originally Posted by MrsMcDowell

That's your bill and shows the breakdown of where the taxes go. When your taxes are assessed you will be sent a form showing the assessed value, how they came to that etc.

Ours includes our property description and the assessment for the current and following year.