Should I Submit A Residential Property Tax Protest Annually?

If you’re a homeowner, a residential property tax protest should always be on your radar around this time of year – even if you filed one last year and won.

The truth is, property tax calculations are based on a lot of arbitrary data – data you just don’t have control of. Appraisal districts use recent home sales and other market info to create your home valuation, and in today’s market, a good chunk of properties are being over-valued. In the end, that means a higher property tax rate and more money out of your pocket – year after year.

Filing a residential property tax protest is vital to bringing that valuation down to an appropriate number and lowering your tax bill for as long as you’re in the home.

Why Should You Protest Every Year?

There are dozens of reasons you should file a residential property tax protest every year, regardless of how it went the year before. Even if you won your protest and reduced your tax burden in years previous, you still have a shot at doing it again. In fact, your chances may even be higher because of those past protests.

Here’s why protesting your property taxes annually is important as a homeowner:

  1. It improves your chances on future protests. If you have a history of protesting your property taxes, it shows you know what the fair value of your home should be. If you don’t, it shows your appraisal district that you’ve been fine with past valuations before. Why should they consider your protest now, when the valuation is the same or just slightly over last year’s?
  2. It improves your neighbors’ chances, too. The lower your property valuation is, the more likely your neighbors can get theirs lowered as well. And when their property values are low, it makes it easier to lower yours again the next year. It’s an endless cycle that brings down tax burdens across the entire neighborhood – so be sure to get your neighbors involved and encourage them to file a residential property tax protest annually, too.
  3. The market is constantly changing. Property valuations are based on market data that’s always changing. As home prices go up and appraisals rise with them, it brings up overall property values across the area – and that means higher taxes, too. You shouldn’t have to pay more because John Smith down the street made a mint on his home sale – and filing a residential property tax protest can keep you from doing so.

Have a question? Contact Mishkin Santa.

Your comments are always welcome!

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